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The BMR Portfolio (2nd of 2 Parts)

GoldQuest Mining (GQC, TSX-V)

GoldQuest enjoyed another solid week, climbing 2.5 cents to close at 28.5 cents…the stock traded as high as 31 cents Thursday, just 1.5 cents shy of its 52-week high…GQC’s short-term moving averages (10 and 20-day) are back in bullish alignment and the stock found strong support in Friday’s sell-off at 26 cents…GQC is one of our favorites with an outstanding portfolio of Gold projects in the Dominican Republic including Las Tres Palmas and Las Animas…the company also holds the Toral Silver-Lead-Zinc Project in northwest Spain with an historical (non-compliant) estimate of 5.4 million tonnes grading 9% zinc, 6% lead and 45 g/t Ag…a 43-101 is currently being prepared on Toral in addition to Las Tres Palmas…Las Tres Palmas is an exceptional target as demonstrated by new drill results released this past summer which included 26 metres grading 11.4 g/t Au in LTP-39 and 53 metres of 3 g/t Au in LTP-41 from the Escandalosa Zone…the results extended the known mineralization at Escandalosa to the northeast and south where it remains open in both directions…the Gold occurs as a flat-lying stratiform zone at shallow depth with mineralization interpreted to be part of a larger intermediate sulphidation replacement-style system which has now been defined intermittently over a strike length of 2,100 metres…Las Tres Palmas is part of the company’s San Juan Project which was discovered by GoldQuest geologists during the Gold Fields-funded regional exploration program in an area believed to have no previous history of mining or exploration…based on results to date, additional drilling at Las Tres Palmas could give GoldQuest a deposit of a million ounces or more at this property…that is clearly the potential…the initial 43-101 is expected to fall considerably short of that mark with only 42 holes drilled so far but the 43-101 will add fundamental value to the company and provide a base to build on…GoldQuest is in the process of organizing its exploration plans for its various DR properties including Las Tres Palmas…we expect by January at the latest GQC will be in the midst of a major new drill program in the DR…GoldQuest is up 33% since we added it to the BMR Portfolio in late September…in mid-2007, when the CDNX was trading above 3000, GoldQuest ran to an all-time high of $1.80 for a market cap of about $100 million…the company has much more going for it now in the DR, and has also since built a strong presence in Spain with a polymetallic project at Toral that definitely has production potential, so the possibilities for GQC going into a very hot market in 2011 are incredibly exciting to say the least…

Sidon International (SD, TSX-V)

Sidon was unchanged for the week at 10 cents and we can’t help but think this area, where the stock has been trading at since late September, is the bottom after a 50% drop from a climb to a 52-week high of 18 cents in early August…Sidon continues to trade within its 100 and 200-day SMA’s and the market is just waiting for news, we think, for SD to break to the upside once again…we remain very bullish on the prospects for Sidon though the company seems to be holding its cards close to its chest at the moment…we fully expect that Sidon’s Morogoro East Gold Property in eastern Tanzania will generate major interest in the coming months…it also wouldn’t surprise us if Sidon picks up additional land packages in Tanzania…the share price is underpinned by rising long-term moving averages (100, 200 and 300-day SMA’s) which confirms the outlook remains very positive…Sidon is up 100% since we uncovered this diamond-in-the-rough for BMR readers last spring…

Seafield Resources (SFF, TSX-V)

Seafield was off half a penny for the week at 20 cents, its 100-day rising SMA where there is strong support…like with SD, the market is anxiously waiting for an exploration update from Seafield…based on our interview with President and CEO Tony Roodenburg recently, we expect some news very soon…no assay results have yet been reported from Miraflores where drilling started over 4 months ago…the goal is to increase the 43-101 compliant resource at Miraflores by approximately 25% to 1 million ounces…Seafield’s best prospect at Quinchia is Dos Quebradas…historical drill results as well as recent geophysical and soil sampling work by Seafield suggest Dos Quebradas is a highly prospective porphyry-style target that holds major discovery potential…Seafield’s third property at Quinchia is Chuscal but the company is still waiting for Colombian government sign-off on that deal (expected in the near future)…with a market cap of only $20 million, the risk-reward ratio with this play right now appears to be very favorable…Roodenburg stated the company also has plans for its Picachos silver-Gold Property in Mexico…Seafield’s other asset is its Elora Gold Property near Dryden, Ontario, which previously has delivered very promising results…Seafield is up 233% since we introduced it to BMR readers in the summer of last year…we see strong fundamental value with SFF…

Excel Gold Mining (EGM, TSX-V)

Excel held its AGM last Tuesday and Frank Basa was elected President which was an encouraging development…Basa has some cleaning up to do with this company but he has certainly proven himself with Gold Bullion and we’re confident he’ll make Excel a big success…Basa would never have committed himself to EGM if he thought for an instant his involvement with that could potentially hurt GBB…quite the contrary, we expect his decision will help both companies…Excel closed at 15.5 cents Friday, a gain of 1 penny for the week after falling as low as 13 cents last Monday…EGM also announced on Friday that it has hired First Canadian Capital for IR services…the company recently finalized a $763,000 flow-through financing and a 4,000 metre drill program is now starting at its Montauban Mining Camp Project, 120 kilometres west of Quebec City…drill targets were selected based on information provided by the most extensive historical compilation of geological data (including over 900 drill holes) ever assembled on Montauban which is a former Gold, silver and base metals producer…Excel is down half a penny since we added it to the BMR Portfolio early last month…

Colombian Mines (CMJ, TSX-V)

Colombian was unchanged for the week at 80 cents with volume picking up marginally…for the past 2 months the stock has traded in a tight range between its 100-day SMA and its 200-day SMA…the 100-day is poised to soon reverse to the upside…our expectation, based on technical and fundamental factors, is that CMJ will ultimately overcome resistance at 95 cents and head north…traders should be watching this one closely for if and when CMJ gets through 95 cents, its move will likely accelerate rapidly just based on technical factors…on October 13 the company reported assay results for 7 more holes at its Yarumalito Property with the best result being a 151 metre section in porphyry from YAR-24 grading 0.64 g/t Au…YAR-14 returned 95.5 metres of 0.70 g/t Au…Yarumalito continues to show promise but these are still early days and much more drilling is required…CMJ is one of the best positioned companies in Colombia with a history in that country and a large package of properties…the stock is up 25% since our introduction of it late last year (it was up as much as 170% at $1.62 in March)…