7:30 am Eastern Time
From Rouyn-Noranda, Quebec:
It’s a wonderful feeling to once again be back in the world’s #1 jurisdiction for mining and exploration…BullMarketRun has returned to the “Golden Highway”, the prolific “Cadillac Trend”, where an astonishing amount of gold has and is being mined…this is truly one of the greatest gold mining areas in the world and in our estimation Gold Bullion Development’s Granada Property will soon be the next multi-million ounce deposit in northwestern Quebec…we have an extremely busy first day here which is beginning early, well in advance of the 9:30 eastern time market opening bell, so this morning’s BMR “Musings” will not be updating any of the initial trading action…it’s soon time to venture into the LONG Bars Zone, boots, hard hat and all…Gold Bullion (GBB, TSX-V) came out with news yesterday – clear and businesslike – and as luck would have it, it appears they’ll be drilling right around Discovery Hole GR-10-17 when we get to the property this morning…Gold Bullion has completed 11 holes and 2400 metres of drilling so far…one of the great things about this company is that it does what it says it’s going to do…President and CEO Frank Basa told BMR a couple of weeks ago that a second drill rig was arriving on the property by early June, and indeed that’s exactly what happened – on the very first day of the month…while the original rig drills fresh holes around the northeast discovery area and progresses further east, this second rig is going to handle in-fill definition drilling within the Block Model…the two-pronged strategy is to generate a NI-43-101 for the area within the Preliminary Block Model (2.4 to 2.6 million ounces is the current non-43-101 estimate) and go after all the blue sky potential outside the Block Model as demonstrated by GR-10-17 which is the easternmost hole drilled to date by Gold Bullion…our theory, and we’ll expand on this over the next few days, is that the current Block Model is ultimately going to prove up considerably more than 2.4 to 2.6 million ounces especially when deeper holes are drilled (300 to 500 metres)…the LONG Bars Zone eastern extension could go on for several kilometres…mineralization is open in all directions here…so the possibility of a world class bulk tonnage, open-pit deposit three or four times the current estimate is very realistic…Gold Bullion closed at 44.5 cents yesterday, a half penny jump on a down day for the CDNX and all the major markets…in our view June is going to get a lot better and now’s an ideal time to focus in on special opportunities presented by companies such as Gold Bullion and others that have strong balance sheets and an aggressive approach to exploration…on that note, we suggest investors do their due diligence on Manitou Gold (MTU, TSX-V) which just started trading on the Venture Exchange in March…Goldcorp Inc. (G, TSX) has a 15% stake in Manitou which has assembled a very attractive package of properties in the Gold Rock mining camp of northwestern Ontario near Kenora…Manitou is currently drilling the former producing Big Master Mine at its Kenwest Property…the company has approximately $2 million in the bank and is raising another $3 million on flow-through financing at 75 cents…Manitou has only 22 million shares outstanding…the stock closed yesterday at just 43 cents…Seafield Resources (SFF, TSX-V) is expected to close a $2.5 million financing at 17.5 cents by Friday…technical and fundamental factors both suggest that Seafield is very close to making another strong push to the upside…once the financing is out of the way, the stock should have little problem moving higher especially with drilling commencing soon at Seafield’s Colombian properties…
