The BMR Portfolio
Gold Bullion Development (GBB, TSX-V)
Gold Bullion was up another 8 cents this week to 57 cents as it continues to strengthen in advance of the first set of Phase 2 drill results…it makes sense to us that results in Phase 2 will be even better than Phase 1…we’ve written about the “genius” of GENIVAR on this site before regarding their approach to Granada…the Phase 1 program, which was extremely effective and efficient and covered a wide area to test for “structure”, no doubt gave GENIVAR a wealth of information regarding the geological plumbing of this very large mineralized LONG Bars Zone system…they have used that new knowledge, we’re certain, to carefully and strategically plan the best locations for Phase 2 holes…2400 metres were drilled in the first 11 holes which means they’re going at least twice as deep in this round of drilling as they did in Phase 1…almost all previous holes ever drilled at Granada never went deeper than 150 metres…the early Phase 2 results could prove to be very interesting for the above mentioned reasons…we encourage investors to keep thinking “big” with regard to Granada and Gold Bullion because the geological facts are telling us to think big…this is the real thing and if all the analysts and the mutual funds are slow in figuring this story out and don’t come on board for a little while yet, that’s perfectly fine…they can buy their millions of shares at much higher prices…
Seafield Resources (SFF, TSX-V)
Seafield was given CDNX approval Thursday for its recently closed $3 million private placement at 17.5 cents…this stock is looking very, very interesting right now…what appears to have happened – based on the 10 million share day in May and this large private placement that Seafield didn’t have to do – is that some new “players” have come to the table, so to speak, with Seafield, in addition to Scott Paterson and some of his associates over the last nine months or so…this is what is commonly referred to in the industry as “broadening out”… expect Seafield to have plenty of market support over the summer…we love this story more than ever…the company is sitting on about $5 million cash in the bank…a major drill program is about to commence at its Quinchia properties in Colombia…Seafield has the right boots on the ground there…and one of their properties, Miraflores, has a NI-43-101 inferred resource of nearly 800,000 ounces with considerable upside potential…Seafield still has the highly prospective Picachos Property in Mexico and the Elora Gold Property in Ontario…Manitou Gold (MTU, TSX-V) is aggressively drilling the former Big Master Mine which is right next to Elora…the potential exists for some good results out of Big Master which would have an impact on Seafield…investors, therefore, need to keep a close watch on two fronts with SFF – Colombia and northwestern Ontario…technically, Seafield bottomed out at 16 cents last month and has formed a very solid base since then…it appears almost ready for a major rebound and a potentially explosive move…we also like the fact Seafield’s not drawing a lot of interest on the chat room boards right now…that’s a positive contrarian sign…Seafield closed unchanged on the week at 17.5 cents…
Sidon International (SD, TSX-V)
Sidon has now filed all the necessary paperwork with the CDNX regarding its letter of intent for an option to acquire the Morogoro East Gold Property in Tanzania…that paperwork includes a 43-101 report on Morogoro and the $750,000 private placement at 5 cents…we’ve done considerable research on Morogoro and if Sidon is able to move ahead with this project, and we see no reason why they won’t be able to, the blue sky potential is enormous…one only has to look at what Canaco (CAN, TSX-V) has done in Tanzania to understand that…Sidon jumped 1.5 cents this past week to 6 cents…
North Arrow Minerals (NAR, TSX-V)
North Arrow’s time is approaching…the company is expected to start drilling its Lac de Gras diamond property by the end of July/early August…the stock closed Friday at 18 cents, a half cent increase for the week…accumulation around current levels clearly makes sense for patient investors with at least a 3-month timeline…technically, the stock has exceptionally strong support at 16 cents which happens to be its 500-day moving average…North Arrow could receive a boost in the near future from drill results at its Beaverdam Lithium Property in North Carolina…this is a well-run company led by one of the very best in the business of grassroots exploration, Gren Thomas…Thomas has teamed up with Dr. Chris Jennings on North Arrow’s Lac de Gras holdings…Jennings is one of the world’s foremost authorities on diamond exploration and he and Thomas together discovered the very rich Diavik deposit in the Northwest Territories nearly 20 years ago…Diavik trends right through the centre of North Arrow’s property where Jennings has identified (through proprietary technology) 70 high priority kimberlite targets, only one of which has ever been drill-tested…
Kent Exploration (KEX, TSX-V)
Kent closed the week unchanged at 11 cents but is clearly attracting some bargain hunters…if the company is successful in completing a proposed $600,000 private placement (we say “if” because we’re taking nothing for granted with Kent right now), then the outlook for this stock will improve significantly…the infusion of cash would give Kent the opportunity to commence barite production at its Flagstaff Property in Washington State and also conduct a first phase drill program at its very promising Alexander River Gold Property in New Zealand…for the moment investors are negative on Australia where Kent‘s Gnaweeda Gold Project has immense potential…we’ve had some bad luck with Kent because of Australian politics, but we’re confident the company will rebound…
Richfield Ventures (RVC, TSX-V)
This stock is struggling to find its footing and get back on track but some progress was made this week as Richfield jumped 12 cents to $1.14…the stock found strong support, as expected, right at its rising 300-day moving average just under $1.00…technically, it’s likely to form a base around current levels for a little while longer…we remain very bullish on the prospects for Richfield, though, as it continues to drill its Blackwater Gold Project in central British Columbia…the 25,000 metre drill program that started in April has proceeded slowly and limited initial results have been okay but well short of spectacular…the company has received approval for a second rig (permits come from the B.C. government and that can often be a frustrating process) and this should help get the drill program going at a better speed…there’s every reason to expect some more outstanding drill results from Blackwater over the summer…it has all the potential to be a world class bulk tonnage deposit…
Colombian Mines Corporation (CMJ, TSX-V)
It was a quiet week for CMJ which was off 6 cents to 84 cents but on total volume for the week of only about 100,000 shares…an exploration update with new drill results can’t be far off, likely by month-end…CMJ is a valuable long-term hold with a large land package in Colombia where the company has strong ties…technically, the stock is resting just above its rising 200-day moving average…
Greencastle Resources (VGN, TSX-V)
Very little to report with Greencastle…long-term investors are wise to accumulate at current levels as VGN is essentially trading at cash value, but there are certainly better short-term opportunities in the market…at some point we expect President/CEO Tony Roodenburg will generate some excitement with Greencastle through a new deal or its Nevada gold property holdings…in the meantime the company is receiving approximately $120,000 per month in oil royalties from Primate which is enough to pay the bills and maintain a strong cash position…
