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The BMR Portfolio (Part 2 of 3)

Gold Bullion Development (GBB, TSX-V)

Gold Bullion pulled back with the CDNX in general this past week but no chart damage has been done and GBB closed Friday in an area of strong support at 79 cents, the September high…regular followers of GBB will know that these pullbacks have always presented favorable buying opportunities, and the RSI(14) has just hit 50 which puts GBB in a very attractive zone for accumulation…the rising 50-day moving average (SMA) at 72 cents provides exceptional support…the GBB chart continues to be a picture of beauty with a slow but consistent rise in the share price since last spring…a couple steps ahead, one back, a couple more ahead, and so on…in this type of technical pattern, at some point an explosion to the upside will usually occur…that moment may not be far off with Gold Bullion as results from the Granada Gold Property start to pour in and drilling covers an even larger area…we remain convinced Granada has strong potential to rival Canadian Malartic in size but of course this will require an enormous amount of additional drilling and investor patience…we will have much to report from Granada in the weeks ahead as we’re making two separate visits to Rouyn-Noranda…this first visit is more research-oriented as we’re meeting with geologists and various companies in the immediate area which will also give us an even better handle on the potential of Granada…investors are anxiously awaiting new drill results from the LONG Bars Zone (last results were November 19) but it’s worth reminding readers that it took Seafield Resources (SFF, TSX-V) six months before releasing results from Miraflores that turned out to be spectacular and put the company on the front page of The Northern Miner…what we can discern from the most recent GBB results is that the LONG Bars Zone appears to be widening from north to south which of course is very positive for the geometry of this deposit…it’s our theory that the mineralization GENIVAR is discovering in the northern portion of the Eastern Extension actually begins to the west above the Preliminary Block Model…at this point there’s no question there’s strong new potential for the LONG Bars Zone going north, and Hole #86 (one gram over 84.6 metres near-surface) shows there is also new potential going south…looking at the drill map on the GBB web site, it’s obvious that GENIVAR has drilled a series of holes northwest of #86 toward Pit #2 East in the Preliminary Block Model to confirm if there is a possible extension of the #2 Vein…to the east, of course, it’s all “blue sky” as Gold Bullion has several kilometres of highly prospective strike length still to explore (LONG Bars Zone 2 is nearly two kilometres east of Phase 1 discovery hole #17)…we expect things could really heat up with Gold Bullion once the company and GENIVAR decide to step out into the heart of LONG Bars Zone 2…

Cadillac Mining (CQX, TSX-V)

Cadillac Mining has been a star performer since we introduced this intriguing company to BMR readers a month ago, but we have reason to believe the best is yet to come…Cadillac was off a penny for the week at 40.5 cents and reached a multi-year high of 50 cents last Tuesday, the first trading day of 2011…the decline the last three sessions has eased the overbought condition considerably with the Chaikin Money Flow indicator actually rising, a very bullish sign…there are several really interesting and powerful dynamics at work at the moment with Cadillac, the newest one being the large claim position it holds to the south and west of Vantex’s (VAX, TSX-V) Galloway Project…Vantex has more than doubled in value on high volume since December 30 when it announced that Robert McEwen has taken a significant position in the company…McEwen is bullish on Galloway, and you can be sure he’s well aware of Cadillac’s holdings immediately adjacent to that property…drill results are expected soon from eight more holes from the Moriss Zone at Galloway…a little further east, Cadillac holds a 100% interest in seven strategic and valuable claims (164 hectares in total) immediately adjacent to Richmont Mines‘ (RIC, TSX) Wasamac Property where drilling has proceeded with increasing urgency since last May…Wasamac is a former producer and Richmont is making new discoveries there…more drill results and a new resource estimate are expected this month…what’s particularly interesting is that the principal structure that hosts the Gold mineralization at Wasamac dips northerly toward the seven claims owned by Cadillac…in addition, from the only hole Cadillac has drilled at its Wasa claims, a hole that they deepened last summer, the company discovered a 300-metre thick altered zone that’s interpreted to be a feeder system typical of those seen under VMS systems in the Noranda camp…it’s clear that Cadillac’s “Wasa” claims, largely untested, hold outstanding potential…another factor driving Cadillac is the fact the company appears to be close to nailing down some important property acquisitions in the Great Basin of the western United States, “elephant country” for Gold…as stated in CQX’s December 30 news release, “management is targeting several acquisitions generated from in-house research, data analysis and prospecting conducted over the past year“…we met with Cadillac President and CEO Victor Erickson prior to our departure to Quebec last week and he’s an impressive individual with a very strong industry background and the ability and determination to make some big things happen with this company…at his side is Andre Audet (VP, Exploration) who also has excellent credentials…we’re extremely comfortable with this situation and the company’s market cap is still only $10 million with a highly attractive share structure…insiders are hanging on tightly to their positions despite the significant increase in the share price over the past couple of months…Cadillac has partnered with Visible Gold (VGD, TSX-V) on nearly 7,500 hectares in the Rouyn, Beauchastel and Dasserat townships including the claims beside Vantex’s Galloway Project…Visible Gold intends to be very aggressive in the exploration of these properties and that bodes extremely well for Cadillac which continues to hold a 100% interest in its “Wasa” Property as well as its “Gan” Property, 1.6 kilometres north of Richmont’s Francoeur Mine underground workings…

Currie Rose Resources (CUI, TSX-V)

Currie Rose fell just half a penny for the week after an impressive rebound Friday on the highest volume since December 6…the stock fell as low as 28.5 cents Friday but rallied to finish at the high of the day, 34 cents, on just over two million shares on the CDNX…technically, Currie Rose has formed a bullish downsloping flag with the 38.2% Fibonacci retracement level at 30 cents becoming the price support…that’s also the 50-day moving average (SMA) which continues to rise…the stock has repeatedly bounced off this support area since early December…the Chaikin Money Flow shows increasing buying pressure and other indicators have turned positive…it’s reasonable to assume that news on the exploration front with this company is imminent and that includes results from the Sisu River Gold Property at Mabale Hills where drilling started near the end of October…this was very much “wildcat” drilling but at the very least what we want to see is strong evidence of a promising mineralized structure at this property that would warrant a major follow-up campaign…Currie Rose has really only scratched the surface of its large land package in northwest Tanzania where the Mabale Hills and Sekenke Projects have company-making potential…President and CEO Harold Smith has made it clear that Currie Rose is entering its most active period ever in terms of exploration…given that fact, and the known potential that exists over a total of nearly 600,000 hectares at Mabale Hills and Sekenke, one can’t help but come to the conclusion that the odds of a major discovery this year for CUI are very real which is why we are so bullish on this company…in addition, Currie Rose also holds the Scadding Gold Property near Sudbury, a former producer that is getting another look and yielding some interesting results…Currie Rose has optioned Scadding to Trueclaim Exploration (TRM, TSX-V) which can earn a 51% interest in the project by completing a substantial work commitment…a major drill program is slated to commence at Scadding in the near future…

Richfield Ventures (RVC, TSX-V)

Richfield continues to consolidate after running all the way to $5.10 in late November…RVC fell 54 cents for the week with almost half of that drop coming Friday when it shed 26 cents to close at $4.20…the chart looks very good here as the stock is now resting just a few pennies above its supporting 50-day moving average (SMA) which it has not dropped below since its big move started near the end of July…stock from the September $1.95 financing (7.5 million shares) becomes free trading as of January 18, but we suspect most of those players are long-term holders who see the strong possibility of a much higher share price if the drilling success at Blackwater continues…the primary trend remains up with Richfield and there’s every reason to expect more excellent drill results in 2011…RVC is ahead 250% since we introduced it to BMR readers just over a year ago at $1.20…we believe the company’s objective is to ultimately find a buyer for its potential multi-million Gold deposit at Blackwater…if good drill results continue, we’re confident that objective will be met and the takeover price could be much higher than the company’s current market cap of approximately $165 million…all indications are that Blackwater is shaping up to be a major deposit which also contains silver and copper values…

Greencastle Resources (VGN, TSX-V)

Greencastle was off 8.5 cents this past week to 27.5 cents on relatively low volume and has clearly entered oversold territory on the charts…Friday’s close brought it slightly below the 50-day moving average (SMA), so we expect a reaction to that and a quick move back above the 50-day this coming week…one can sleep well at night holding Greencastle…the company has approximately $6 million in cash, no debt, an oil royalty that brings in over $100,000 each month and was independently valued at over $5 million by an engineering firm a year ago, and three Gold properties with the strong likelihood of an “advanced” fourth project being added to the mix in the near future based on hints in recent news releases…the current market cap is only $12.5 million…Greencastle is becoming much more active in the Gold exploration space and that means bullish times for this stock in 2011…it’s also interesting to note that President and CEO Tony Roodenburg, a large shareholder in VGN, has refrained from selling any shares in recent months despite the fact the stock price more than tripled in value on high volume…this is different from past runs in the stock and adds further credence to our view that Greencastle is poised for a massive breakout this year…Pinetree Capital has also accumulated more shares in Greencastle, so there’s every reason to be very optimistic regarding this company’s prospects in the days, weeks and months to come…