The BMR Portfolio (2nd of 2 Parts)
GoldQuest Mining (GQC, TSX-V)
GoldQuest fell 2.5 cents for the week, closing Friday at its 20-day moving average of 26 cents, though the company came out with some very good news regarding its Las Tres Palmas Project in the Dominican Republic…a 43-101 inferred resource estimate for the La Escandalosa Zone shows 406,000 ounces with nearly 5 million tonnes grading 2.60 g/t Au…La Escandalosa is open both to the south and to the north toward another discovery of Gold mineralization by the company at Hondo Valle, approximately 1.2 kilometres north of La Escandalosa…the inferred resource estimate was done early in the exploration stage for this property as only 25 holes have been drilled at the La Escandalosa Zone between 1996 and 2000…GoldQuest now has all the permits in place for more drilling throughout the Las Tres Palmas Project, and it appears a drill campaign will be in full swing there by January…the potential to substantially increase the initial inferred resource estimate for La Escandalosa clearly exists…Gold there 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…GoldQuest has been exploring in the DR for a decade and has assembled a tremendous portfolio of properties including Las Animas where 129,000 ounces of Gold, 2.5 million ounces of silver, 106 pounds of copper and 130 million pounds of zinc have been outlined (43-101 inferred resource)…GoldQuest also holds the Toral Silver-Lead-Zinc Project in northwest Spain…a 43-101 is currently being prepared for Toral…we see tremendous possibilities for GoldQuest in 2011 as it continues to advance its many properties…
Sidon International (SD, TSX-V)
Things are starting to look good once again for Sidon which dropped in half from a 52-week high of 18 cents in early August…the company came out with some exploration news last week from its Morogoro East Gold Property in east-central Tanzania, showing encouraging sampling results as well as good potential for its placer deposit…the company has also hired IR which is often a tell-tale sign that activity is about to ramp up…Sidon also announced that its new web site should be ready by the end of next month…Sidon continues to trade within its 100 and 200-day SMA’s, and the first sign that a major new move is underway will be a reversal in its 50-day SMA which is likely to occur anytime within the next month…we remain very bullish on the prospects for Sidon which technically has bottomed around current levels…the stock was up half a cent this past week to 10.5 cents…
Seafield Resources (SFF, TSX-V)
Seafield is a bit of a mystery at the moment with little exploration news and a slowly declining stock price…SFF was off 2 cents for the week at 18 cents, and we’re still waiting for drill results from Miraflores and an overall update on immediate exploration activities and plans for Quinchia…fundamentally, the company has an excellent property package in Colombia but unfortunately it has failed – so far at least – to take full advantage of the opportunity it has had…blame for that falls squarely on the shoulders of Seafield Colombian manager Ian Park who has disappointed us, especially after expectations he built with his conference call with investors in July…we’re certainly not prepared to give up on Seafield, however, as we see strong value with its Quinchia properties and little downside risk at current levels…the stock has tripled in value from when we first introduced it to BMR readers in the summer of last year but has under-performed through much of 2010…
Excel Gold Mining (EGM, TSX-V)
Excel has started drilling at its Montauban Mining Camp Project, 120 kilometres west of Quebec City…we like Montauban a lot and if anybody can unlock the value of this project, it’s Frank Basa…Excel just recently named Basa as President…the Gold Bullion President and CEO has some cleaning up to do with Excel but he has certainly proven himself with Gold Bullion and we’re confident he’ll turn Excel into a major success though this won’t happen overnight…Excel closed at 14 cents Friday, a loss of 1.5 cents for the week…the company recently finalized a $763,000 flow-through financing and a substantial drill program is now underway at Montauban…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 2 cents since we added it to the BMR Portfolio early last month…
Colombian Mines (CMJ, TSX-V)
Activity picked up in Colombian last week with volume improving significantly and the stock hitting a weekly high of 92 cents (its 200-day moving average)…CMJ closed Friday at 83 cents, a 3-cent gain for the week…last Wednesday the company announced that recent channel sample results have extended high grade Gold-silver-copper mineralization over a much larger width than indicated by historic information at its 9,300-hectare El Dovio project in Colombia…all samples returned significant polymetallic mineralization…6 samples contained Gold in excess of 10 grams per tonne, with individual 2-meter channel samples assaying up to 25.55 grams per tonne Gold, 66.88 grams per tonne silver and 13.5 per cent copper…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 now beginning to reverse to the upside…our expectation, based on technical and fundamental factors, is that CMJ will overcome resistance at 95 cents and head north in the near future…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 38% since our introduction of it late last year (it was up as much as 170% at $1.62 in March)…
