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August 16, 2010

BMR Morning Market Musings…

Gold is enjoying another strong day and is now at a 6-week high…as of 8:15 am Pacific, Gold is up $9 an ounce to $1,224…we see the possibility of Gold surging higher on technical momentum before running into heavy resistance around $1,250…a breakout to new all-time highs seems probable but the big question is when – September/October, a period of traditional strength, seems reasonable for a push to $1,300 or better…the CDNX, which gave strong clues last month of an imminent increase in the price of Gold, is another 8 points higher this morning at 1465…Gold Bullion Development (GBB, TSX-V) is unchanged at 54 cents…investors are eagerly awaiting the first assay results from the LONG Bars Zone east-northeast extension…Granada has consistently delivered good news this year and we strongly believe the east has the potential to deliver great news…given what we know historically about that area, and given Gold Bullion’s encouraging visual reports of the drilling there, it’s not hard to come to the conclusion that at least a few of the 27 holes drilled east of the Block Model as of the end of July could be spectacular…this has been an exciting story to watch and we have every reason to believe it’s going to get even more exciting very soon…Quebec is a hot address at the moment and we very much like a company we’re learning about now with a property that has some similar characteristics to Granada…Excel Gold Mining Inc. (EGM, TSX-V), featured in John’s Technically Speaking article this morning, has a phenomenal chart and is exploring and developing the former producing Montauban mine (gold, silver and base metals) 120 kilometres west of Quebec City…Excel has also assembled a strategic land package of approximately 130 square kilometres surrounding Montauban which features near-surface mineralization…it’s early in the game but this has a lot of possibilities as another potential open-pit, massive tonnage situation…Excel is unchanged at 16 cents this morning…the volume increase in this stock this year is similar to what we saw in the early days of Gold BullionEGM has liquidity, a very interesting property package, and the right address – Quebec…they also seem to have gotten much more aggressive in their exploration plans…Sidon International (SD, TSX-V) is up half a penny to 16 cents…Sidon has jumped over 200% since we introduced it back in March…we’re waiting to see the company’s plan of attack with regard to its Morogoro East Gold Property in eastern Tanzania (approval from the CDNX was just recently granted with regard to that deal)…interest in eastern Tanzania is high at the moment with Canaco (CAN, TSX-V) reporting great results from its Handeni Project, approximately 100 kilometres north of Sidon’s property but along the same geological belt (or parallel belt)…Canaco has broken convincingly through the $2 barrier and is up another 12 cents this morning to $2.27…

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