Concerns about a possible new round of Chinese monetary tightening resulted in a 5% drop in the Shanghai Index overnight which has driven markets lower across the board today…as of 9:00 am Pacific, Gold is off $37 to $1,372, Silver has declined $1.46 to $26.62, while the U.S. Dollar Index is also weak, down one-quarter of a point to 78.04…this corrective pullback is healthy and helps open up some good opportunities…the biggest single-day moves in Gold throughout this 10-year bull run have consistently been to the downside and they have always presented buying opportunities…the CDNX is actually holding up quite well in the face of such sharp declines across the board…the Venture is currently down 37 points to 2002….2000 (the 10-day moving average) provides very strong support…in fact, the previous resistance band we identified (1900 – 2000) gives exceptional support so even a drop below 2000 would not concern us as the downside risk from there is quite limited in our view…Gold Bullion Development (GBB, TSX-V) says it will be updating progress next week at the Granada Gold Property…that bit of information was included in the company’s new Fact Sheet on its web site this morning…our take on that is that fresh assays are on the way, and perhaps a more general update, which fits well with Frank Basa telling us this week that he didn’t want to do an interview when news came out a few days ago – he wanted to wait until sometime next week…this suggests to us that GBB indeed may have something potentially VERY significant to announce very soon…the stock is off 2 pennies at 60 cents…bargain hunters should also be keeping a close eye on Currie Rose Resources (CUI, TSX-V) which is currently off a penny at 21 cents…CUI has been under aggressive accumulation for good reason…drilling continues at Sisu River in Tanzania with initial results not far off…Sisu River is part of Currie Rose’s highly prospective Mabale Hills Project which has delivered outstanding drill results before, notably just 8 kilometres or so to the southwest of Sisu River at Mwamazengo…Currie Rose will be getting very aggressive with its Tanzanian properties covering, in particular, Mabale Hills and the Sekenke Project where the company’s 300 square kilometre land package surrounds two former producing mines…also in Tanzania, of course, is another company we like – Sidon International (SD, TSX-V)…Sidon has been very quiet recently but technically it appears the stock has bottomed out at current levels…it’s trading between its rising 200-day moving average at 8 cents and its still-rising 100-day SMA at 11 cents…we continue to expect big things out of Sidon with its Morogoro East Property and other potential acquisitions in mining-friendly Tanzania…Sidon is unchanged at a dime this morning…Excel Gold Mining (EGM, TSX-V) is up half a penny at 15 cents, announcing this morning that it has hired First Canadian Capital for IR services…Richfield Ventures (RVC, TSX-V) continues to hold up well with new technical support around the $3 level…RVC is actually up 3 pennies in this morning’s weak market to $3.07…Greencastle Resources (VGN, TSX-V), which recently acquired land near Richfield‘s Blackwater Project and jumped to 29 cents after we added it to the BMR Portfolio at 14 cents, is off 1 cent this morning to 24 cents…Greencastle is unwinding its recent overbought condition which is healthy, and we expect VGN to hold support within about 10% of current levels…another company around Blackwater that we suggest investors do some due diligence on is Troymet Exploration (TYE, TSX-V) which is off half a penny to 17.5 cents…
November 12, 2010
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GBB Fact Sheet:
………………
Gold Bullion Development will be providing additional
updates on the advancement of its Granada Gold
Property Project in northwestern Quebec the week
of November 15. On Tuesday, November 9, Gold
Bullion announced it had made another important
discovery of shallow depth mineralization in the LONG
Bars Zone Eastern Extension at Granada. GR-10-55,
collared 88 meters northwest of Phase 1 Discovery
Hole GR-10-17, returned 1.36 g/t Au over 152.87
meters within a wider interval of 356.6 meters grading
0.60 g/t Au. This hole, which delivered the longest
intersection of mineralization discovered to date at
Granada, included a high grade section of 4.05 g/t
Au over 40.5 meters from 86.64 to 127.14 meters.
A 50,000 meter Phase 3 drill program is now underway
at Granada and a steady flow of Phase 2 assay results
from both the Eastern Extension and the LONG Bars
Zone Preliminary Block Model are expected through the
rest of this month and December. On September 9,
Gold Bullion reported the best near-surface result
yet from its Preliminary Block Model (potential of 2.4
to 2.6 million ounces, non-compliant, as outlined by
GBB in its April 22, 2010, news release). GR-10-53,
collared 88 meters southeast of GR-10-41 and near
Pit #2 East, intersected 68.3 meters of 2.16 g/t Au
within a wider near-surface interval of 110.5 meters
(3.5 meters to 114 meters) grading 1.34 g/t Au. The
hole was drilled perpendicular to Vein #2 and is
believed to closely approximate true width. Meanwhile,
the Eastern Extension (outside the Preliminary Block
Model) continues to be an area of extreme interest.
GENIVAR, Gold Bullion’s geological consultant, reports
that visible gold and disseminated sulphates, along
with large alteration zones, have been observed
within feldspar porphyry in numerous holes drilled
since July in all directions (north, south, east and
west) surrounding Phase 1 Discovery Hole GR-10-17.
Assay results are still pending for most of these holes
where mineralization was encountered near-surface
and at depth. The fact that porphyry is hosting gold
is an interesting development historically for Granada
as a 2006 Technical Report on the property stated
that all economic mineralization at Granada was
related to quartz veining. Of significant new interest
is the southernmost hole drilled to date in the LONG
Bars Zone, GR-10-86 in the Eastern Extension, which
intersected strong alteration and intrusive zones
along with visible gold in two sections (a brecciated
quartz vein and also in feldspar porphyry) at
different depths. Assays are pending on this hole
which is interpreted to be a possible extension of
Vein #2, 250 meters to the west-northwest.
Comment by automobile — November 12, 2010 @ 10:14 am
GBB closed at 60 cents today. This is a bargain price and will be in history soon. We need to look at it in a longer term. Short term with a lot of fluctuations but it will be in the upward mode. Advance healthily in reasonable volume support.
Comment by Theodore — November 12, 2010 @ 4:00 pm
I listened to the Seabridge interview you had recently. I’m still not impressed. Yes, they have 1 Mil oz., but they need to get their act together and prove up more ounces. It seems like the risk/reward is skewed towards risk.
My other question is what about the Yukon? That seems like homerun central, but I don’t see any Yukon stocks in your list. I consider a homerun 1000% return, what is your criteria?
If you are looking at 500%, I think Spanish Mountain Gold, Southern Arc Minerals, and Bear Creek Mining are all going down that road.
Thanks,
Newager
Comment by Newager — November 13, 2010 @ 3:30 pm
I have been buying SQI in the Yukon. The Coffin Brothers and Grandich love it!! I think it is a great Yukon play with huge potential. Perhaps look into it.
Andrea
Comment by andrea — November 13, 2010 @ 3:39 pm
David Chapman (investors digest of canada) likes HMI.V & EXU.V in yukon.Both are around .15 right now,hopefully not for long 🙂
Comment by david — November 13, 2010 @ 6:40 pm