The BMR Portfolio
Gold Bullion Development (GBB, TSX-V)
Gold Bullion traded within a range of 46 to 53 cents this past week and closed Friday at 49 cents, a loss of just 1 penny on the week…it’s baffling to us that some investors have not yet picked up on the obvious clues in GBB’s July 13 news release that some very good assay results could be in the works for the east-northeast area of Granada based on geologists’ visual observations of the core…GBB is intersecting multiple zones of altered feldspar porphyry, with some quartz veining and even some visible gold in some holes, in all directions around Phase 1 discovery hole GR-10-17…in addition, GENIVAR is drilling at least twice as deep in Phase 2 in the east-northeast as they were in Phase 1 and they certainly wouldn’t be wasting time or money doing that unless visuals were confirming the necessity to do so…it appears, then, that mineralization is being encountered both near surface and at depth…assay results will tell the tale, and obviously it’s true that sometimes assays don’t confirm the visuals…but the bullish tone of Gold Bullion’s news release, and Frank Basa’s upbeat tone in our interview with him last Tuesday, suggest the company is very confident about how the Phase 2 program is proceeding…our belief, based on our exhaustive research on Granada in addition to 2 site visits, continues to be that the LONG Bars Zone holds excellent potential as a multi-million ounce low grade, open-pit deposit…the July 13 news release re-confirms that we’re on the right track with that analysis…obviously everyone is anxious to see assay results which will dictate the direction of this stock…at BMR we have complete faith that the Granada Gold Property is going to deliver the goods and if that means putting the reputation of our site on the line, so be it…Granada has given us no reason to be timid…
Seafield Resources (SFF, TSX-V)
Seafield was unchanged on the week at 16.5 cents…this is no time to get disappointed or frustrated in Seafield…the fundamentals with this company continue to be strong and do believe Seafield has a high probability of defining at least 2 million ounces at its Quinchia Project in Colombia by year-end…as SFF proves up ounces in the ground, its share price will increase accordingly…the company is currently drilling its Miraflores Property where it’s hoping to increase the 43-101 inferred resource there by approximately 25% to 1 million ounces…drilling at Dos Quebradas, which has a lot of blue sky potential, is expected to commence within the next 4 to 6 weeks…Chuscal is Seafield’s 3rd major target at Quinchia and it could turn out to be the best of the three based on early geophysical and geochemcial work…
Sidon International (SD, TSX-V)
Sidon, which we introduced to our readers at a nickel just four months ago, has been a star performer in the BMR Portfolio over the past couple of weeks, tripling in value after the company received approval from the CDNX on its letter of intent that gives it an option to purchase the highly prospective Morogoro East Gold Property in Tanzania…the CDNX also finally approved Sidon’s 5-cent private placment announced April 21…Sidon will soon have to raise more money to complete its obligations to acquire Morogoro East and begin exploring it, and we’re sure they will succeed in raising the capital they require…we’re very bullish on Morogoro which is in an under-explored region of Tanzania approximately 100 kilometres south of Canaco’s (CAN, TSX-V) Handeni Project which has garnered a lot of interest lately…Sidon is slowly unwinding its overbought technical condition…there’s strong support at 10 cents and resistance around 15 cents…the stock closed at 12 cents Friday, a 2-cent jump for the week on continued high volume…
Richfield Ventures (RVC, TSX-V)
Richfield has experienced 3 major corrections since last fall when it first announced a significant discovery at its Blackwater Gold Project in central British Columbia…each time the stock corrected sharply to 90 cents and then recovered…Richfield closed Friday at $1,30, a 5 cent drop on the week but a 44% jump from its 90 cent closing price July 5…technically, the stock is encountering strong resistance at its 200-day moving average of $1.35…a move through $1.35 would certainly be a bullish signal…we’re also waiting for a reversal in the stock’s 50-day moving average which has been in decline since May (that likely won’t happen until sometime next month)…fundamentally, Blackwater holds very strong potential as a world class bulk tonnage gold/copper deposit…as drilling intensifies through the rest of the summer (the pace has been rather slow since April when RVC’s 25,000 metre program began), interest in the stock should pick up accordingly…
North Arrow Minerals (NAR, TSX-V)
North Arrow has been firming up a little lately and closed Friday at 18 cents after a 17 cent close the previous week…volume is still very light but that should pick up considerably over the summer as events unfold with North Arrow, namely the expected start of its Las de Gras drill program in September and continued progress with its Beaverdam Lithium Project in North Carolina…given Gren Thomas’ spirit of adventure and fervor for grassroots exploration, we wouldn’t be surprised to see North Arrow add another property to its already large portfolio in the not-too-distant future…Thomas is determined to make things happen with this company which is a big reason we’re so bullish on North Arrow’s long-term prospects…
Colombian Mines Corporation (CMJ, TSX-V)
Colombian’s 50-day moving average has been in decline since May and it could be another month or more before that reverses…the stock is finding strong support at 60 cents, however, where it’s underpinned by a rising 300-day moving average…CMJ was down 3 cents on the week at 65 cents on low volume…we see a lot of long-term value in CMJ which has a very large and attractive land package in Colombia…one of its key projects is the Yarumalito Gold-Copper Property which is delvering encouraging drill results…investor enthusiasm for Colombian gold plays is not what it was last year but that could easily change…
Kent Exploration (KEX, TSX-V)
It seems pretty clear that Kent bottomed out at 10 cents but how quickly it recovers and moves higher is uncertain at this time…Kent finished the week at 12 cents, up a penny-and-a-half from the previous Friday…with a major financing at a dime, the company has finally posted a reclamation bond for its Flagstaff Barite Property in northeastern Washington State…hopefully Kent can get that project moving forward as quickly as possible as work there can only take place over the summer and early fall as winter conditions usually arrive by November…Kent is still waiting for a drill permit (this has been dragging on for months) for its Alexander River Gold Property in New Zealand…and the Gnaweeda Gold Project in Western Australia seems to be in a state of limbo at the moment after the Archean Star financing caved in and was delayed…for patient long-term investors, Kent offers good value with its various projects but there are clearly better opportunities in this market at the moment…
Greencastle Resources (VGN, TSX-V)
Insider trading reports show that Greencastle President and CEO Tony Roodenburg has purchased 341,000 VGN shares in the open market since June 17…that accounts for about 35% of the total trading volume in the stock during that time…it’s not surprising Roodenburg is scooping up shares…Greencastle is trading at cash value and history shows the stock is always a great buy whenever that occurs…an event always seems to eventually come along and drive the stock higher…Greencastle finished at 12 cents this past week, a drop of half a cent from the previous week…for patient investors with a 6 to 12-month time horizon, Greencastle is a relatively safe investment at current levels with much more upside potential than downside risk…Greencastle’s monthly royalties from the Primate oil field in Saskatchewan are approximately $120,000…
