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December 8, 2010

BMR Morning Market Musings…

Gold is sharply lower this morning, off $21 an ounce to $1,380 as of 8:30 am Pacific…it fell as low as $1,370…Silver is down 37 cents to $28.28 while the U.S. Dollar Index is up one-tenth of a point to 80.11…the sell-off in Gold can be attributed to nothing more than profit-taking after a new all-time high yesterday…the CDNX is holding up very well on the charts which tells us that Gold’s drop of over $50 an ounce since yesterday is no different than any of the other sharp drops we’ve witnessed in this ongoing bull market…the CDNX is down 28 points at 2089…it’s finding support for now at its 10-day moving average (SMA)…as John pointed out in his CDNX chart Monday, there is also very strong technical support at 2060, just above the 20-day SMA…the winning strategy with the CDNX throughout the year has been to embrace any weakness and right now is no different…this is a healthy minor pullback in advance of what we believe will be a very powerful market over the next few months at least…BMR continues to research new opportunities and we expect to announce one or more additions to our model “Portfolio” in the very near future…our current Portfolio was up 273% for the year through last Friday…Gold Bullion Development (GBB, TSX-V) fell as low as 66 cents this morning before rebounding…it’s currently down 3 pennies at 69 cents…there is an article on GBB in the latest issue of The Northern Miner with a picture of Frank Basa at Hole #53…Seafield Resources (SFF, TSX-V) came out with more news this morning…Seafield has completed three holes already at its highly prospective Dos Quebradas Property, three kilometres northwest of Miraflores where drilling intersected 1.30 g/t Au over 449 metres in one of the initial holes released last Thursday…we’ve stated all along that Dos Quebradas is Seafield’s best target at Quinchia…Seafield is in the process of drilling eight holes there and reported this morning that the first three holes show similar styles of mineralization to an historical hole drilled by AngloGold that returned an interval of 39.5 metres grading 1.67 g/t Au…Seafield climbed as high as 63 cents this morning but has since pulled back to 55 cents, up 1 penny for the day…Currie Rose Resources (CUI, TSX-V) is recovering after dipping as low as 37 cents…CUI is currently at 41 cents, down 4 pennies…bargain-hunters stepped in on the drop to 37…results are still pending from Currie Rose’s Sisu River Gold Property at its Mabale Hills Project in northwest Tanzania…in east central Tanzania, Sidon International (SD, TSX-V) continues to drill its promising Morogoro East Gold Property…Sidon hit a 52-week high of 26.5 cents yesterday on CDNX volume of nearly 17 million shares…the stock is off 1.5 cents at 21 cents in this morning’s weak overall market…bargain hunters should note that there is exceptional technical support for Sidon in the 18 to 20 cent range…we encourage BMR readers to take a look at one of our favorite silver stocks, Great Panther Silver (GPR, TSX) which has pulled back this morning with the weakness in precious metals…GPR touched its 10-day moving average of $2.26 and as of 8:30 am Pacific it’s down 9 cents for the day at $2.42…

7 Comments

  1. Hi guys!

    I´ve been reading your site everyday since the summer, and just wanna let you know that I really appreciate your work and humbleness, God bless you!

    Looks for me that Tanzania is the place to be for a mining company. Just wondering if you have any feedback on brookemont capital inc. They are also active in Tanzania, and the stock has made a nice move this week.

    Best regards

    Comment by raza — December 8, 2010 @ 9:03 am

  2. Great opportunities to buy GBB this morning, manage to scoop another 20,000 shares at 67 cents this morning. Thanks for unique moment. Full confidence in this stock and BMR analysis. Thanks.

    Comment by Theodore — December 8, 2010 @ 9:59 am

  3. Hi Guys,
    I read that Sidon is involved in some Potash projects. Is the land package great or is it just a minor part of their portfolio?
    Thanks for your input everyday.
    Cheers
    Ian

    Comment by Ian — December 8, 2010 @ 11:53 am

  4. “BMR continues to research new opportunities and we expect to announce one or more additions to our model “Portfolio” in the very near future”

    Intresting!

    Comment by Pat — December 8, 2010 @ 1:07 pm

  5. Brookemont is going to acquire a property boundering Canaco in Tanzania. They do not own this property yet. To take note of this!

    Comment by Arjan Hanegraaf — December 8, 2010 @ 2:55 pm

  6. Sidon announced that it has purchased additional land. They seem to be cleaning up from a management point of view and starting to tell the story in a much more professional way. So far… so good.
    Thanks for all you do and all whom you help at BMR!!
    Andrea

    Comment by andrea — December 9, 2010 @ 4:58 am

  7. Hi Jon,
    This new land acquisition by SD seems good but how is the $5 ml going to be paid. I presume another PP as they only raised enough for the drill program last time. Any views on this?

    Comment by patrick — December 9, 2010 @ 6:44 am

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