The BMR Portfolio
Gold Bullion Development (GBB, TSX-V) enjoyed another banner week, jumping 23% to close at 70 cents…incredibly, this stock has increased 10-fold from when we introduced it to our BMR readers just 6 months ago…a 100,000 share investment at 7 cents for $7,000 last December in GBB would now be worth a whopping $70,000…our outlook for Gold Bullion and its Granada Gold Property remains very bullish…initial drill results from the 20,000 metre Phase 2 program are due out soon though it remains a guessing game in terms of exactly when…technically, GBB has shot up into overbought territory based on Stochastics and the RSI (into areas where it has modestly retreated from before), so a near-term “cleansing” of this condition is possible before the stock makes an attempt at higher levels…that’s not what some investors may wish to hear but at BMR we tell it like it is…it’s important to note, though, that any near-term pullback in GBB – if it happens – is not likely to be severe and will be met with plenty of support…the stock has stayed at or above its 10-day SMA (currently at 61 cents) the entire month of June…
Seafield Resources (SFF, TSX-V)
Seafield has languished for the past few months but finally appears ready to make a move…with approximately $5 million in the bank and a strong portfolio of properties – some of which are about to be aggressively explored – Seafield offers a lot of blue sky potential at its current price of 19 cents…we’re in the process of completing a special update on Seafield which we’ll be posting over the weekend at BMR…this is a company we understand well as we have been following it closely ever since last summer when we introduced it at just 6 cents…technically, a couple of important developments occurred Friday as Seafield closed at 19 cents on strong volume for a 1.5 cent weekly gain…the stock broke above its 50-day SMA for the first time since April and its 20-day SMA has swung positive, ending a decline that started in March…a reversal, therefore, is underway with Seafield which has formed a nice base in the mid-to-upper teens for the past 2 months – just above its rising 300-day SMA…there are other bullish technical factors with SFF that we’ll be detailing here shortly…fundamentally, the company holds some highly prospective gold properties in the Quinchia District of Colombia with one of those properties hosting a NI-43-101 compliant inferred resource of nearly 800,000 ounces…what’s also interesting about Seafield is its Elora Gold Property near Dryden in northwestern Ontario…Elora is a classic Archean shear hosted deposit that sits in the under-explored Gold Rock mining camp…Seafield won’t be doing any work at Elora until later this year BUT what’s happening right now in that mining camp is that newly-listed Manitou Gold (MTU, TSX-V) is drilling like crazy…Manitou is armed with $5 million in its treasury and it’s currently drilling the former Big Master Mine immediately adjacent to Elora…the chance of a high-grade “hit” at Big Master is very real and that would have positive implications for Seafield…expect SFF to very soon regain the momentum it had late last year and into the early part of this year…
Sidon International (SD, TSX-V)
Sidon is very similar at this point to what Gold Bullion and Seafield were like last year…Sidon is waiting for approval from the CDNX on its letter of intent with a private company for an option to purchase the Morogoro East Gold Property in Tanzania, an African country that has really opened itself up for gold exploration and mining…Tanzania has gone from just a million ounces of gold reserves a decade ago to over 50 million now…Morogoro East is in the under-explored eastern region of Tanzania along a potentially prolific gold belt about 100 kilometres south of Canaco’s (CAN, TSX-V) very promising Handeni Gold Project…Sidon has filed a 43-101 report on Morogoro with the CDNX and is also waiting for Exchange approval on its recently completed private placement at a nickel…it has been a waiting game with Sidon over the past 2-3 months but we firmly believe the wait will prove to be worthwhile…Sidon closed the week up half a penny at 6.5 cents…
North Arrow Minerals (NAR, TSX-V)
North Arrow is a truly exciting opportunity and its time to shine is drawing near…we added NAR to the BMR Portfolio in early April and cautioned investors this is not a stock to get into for a quick flip…North Arrow is led by one of the very best there is at grassroots exploration, Gren Thomas…the possibility of Thomas making a major discovery with one of North Arrow’s properties, in particular its Las de Gras diamond property in the Northwest Territories, is very real…Thomas and Dr. Chris Jennings (who is working with North Arrow on its Lac de Gras property) together discovered the very rich Diavik diamond deposit nearly 20 years ago…they are doing everything they can to repeat that success with North Arrow this summer…the company will begin drilling at Lac de Gras likely within the next 4 to 6 weeks…Jennings, using proprietary technology, has identified some 70 high priority kimberlite targets (only 1 of which has ever been drill tested) on North Arrow’s land holdings…Diavik trends right through the middle of North Arrow’s property…North Arrow is also developing its Beaverdam Lithium Project in North Carolina…the stock closed Friday at 16 cents, down 2 pennies for the week…at that price North Arrow is a tremendous bargain for an investor looking for a potential home run opportunity over the next 3 to 6 months…
Richfield Ventures (RVC, TSX-V)
Drilling has proceeded slowly since April at Richfield’s Blackwater Gold Project in central British Columbia which helps explain why the stock has been a poor performer over the past couple of months…initial results from a few holes have been decent but certainly not spectacular…technically, the stock has strong support at 90 cents which must hold…Richfield closed down 14 cents this week to exactly $1…a second drill rig is due to arrive at Blackwater within a few weeks which should give some much-needed momentum to the drill program…we remain very bullish on the prospects for Blackwater which has excellent potential to host a world class bulk tonnage gold/copper deposit…one really good drill hole should get Richfield going again and we’re confident that will happen – the only question is, when?
Kent Exploration (KEX, TSX-V)
Kent got some good news this week with the resignation of Australian Prime Minister Rudd who proposed an insane “super tax” on producing mining companies in that country which chased away a bunch of investors and investment capital…changes will no doubt be made to that proposal to help appease a very nervous mining industry…however, at BMR we have little faith in governments – especially left-leaning ones – so the only real answer to that problem in Australia is an ousting of the Labor Party in elections later this year…Kent holds the Gnaweeda Gold Project in Western Australia which it’s eventually hoping to spin-off into a proposed new public company, Archean Star Resources…Kent has some very promising non-Australian projects which it hopes to advance over the second half of this year, namely the Alexander River Gold Property in New Zealand and the Flagstaff Barite Property in Washington State…Kent is currently trying to complete a proposed $600,000 financing at 10 cents…the stock was unchanged for the week at 11 cents…
Colombian Mines Corporation (CMJ, TSX-V)
We’re expecting an exploration update shortly from CMJ which was ahead 3 pennies this week to 87 cents on light volume..the stock is sitting just above its rising 200-day SMA where it has excellent support…this is a company with a very large portfolio of grassroots properties in Colombia…drilling news from Yarumalito, which has been very encouraging so far, will dicate the next move for this stock…
Greencastle Resources (VGN, TSX-V)
Greencastle continues to languish in the 12 to 13.5 cent range where it has traded since early last month…it closed at 12 cents Friday, giving it a market cap of only $5.4 million which was its working capital position as of March 31…the company is taking in approximately $120,000 a month in oil royalties from its Primate Property in Saskatchewan…for patient and long-term investors (minimum 12-month time horizon), Greencastle is a no-brainer opportunity at current levels…over the short to medium term there are certainly better opportunities in the market…
