BullMarketRun.ca

Gold Bullion Development (GBB, TSX-V)

For the past seven weeks Gold Bullion has traded between its 300-day and 500-day moving averages (SMA), a pattern that seems likely to continue for the immediate future until an event or news produces the most likely scenario which we believe is an upside breakout…GBB closed Thursday at 47 cents for a loss of 6 pennies for the week…investor patience is critical here as this opportunity is as big as ever despite the share price slump which started in mid-February…GENIVAR is expected to complete an initial 43-101 resource estimate for the LONG Bars Zone sometime during the third quarter and that should spark significant new interest in GBB…given the obvious multi-million ounce potential of the LONG Bars Zone, the company’s current market cap of $75 million seems absurdly cheap despite a few miss-steps we believe GBB has made that we’ve already identified…more drill results were released April 5…there were no eye-popping numbers but that’s okay – virtually every hole continues to hit near-surface mineralization and tonnage keeps building…hole #179 (72.25 metres grading 1.25 g/t Au and 156 metres of 0.61 g/t Au) shows mineralization continues to push eastward from Pit #1…six holes drilled just NE and SE of #179 under the waste pile will be important to look for (holes #198, #199, #201, #248, #250, and #253 – assays to come)…hole #97 was a nice cut likely of Vein #2, 46.7 metres grading 1.51 g/t Au…holes like #69, #124, #136 and #193 don’t get most investors excited but they’re very important to the overall picture with long intersections of lower grade (177, 113, 189 and 165 metres respectively grading between 0.31 and 0.42 g/t Au)…Frank Basa will have no problem with those numbers, keeping in mind the “upgrading” effect at Granada…structure is there…more bulk sampling and different types of drilling will quantify and improve the grade…just a few holes reported from the southwest corner of the Block Model with many more to come from there – it continues to be a promising area…there were a smattering of holes from the Eastern Extension but nothing that jumped out at us…many more results are yet to come from the Eastern Extension including the northern part where good visuals were reported earlier…it’s interesting to note that on GBB’s drill map, three step-out holes have been drilled about 90 to 145 metres north of holes #55 and #108…we’ll be watching closely for results from those holes…assay results are now in on nearly half of the 228 holes completed so far (45,000 metres) in Phases 2 and 3…47,730 metres in total have been completed since December, 2009…the case for the LONG Bars Zone remains intact…much, much more drilling lies ahead as this is all about volume (which is why we wanted to see more than two rigs by 2011)…the 43-101 this summer will be extremely helpful in terms of pushing this exciting project forward…Gold Bullion is sitting on a potentially huge near-surface Gold deposit in one of the best jurisdictions in the world for mining and exploration during the greatest bull market in history for the yellow metal…on April 11, Gold Bullion announced its intention to spin off its Castle Silver Mine Property into a separate publicly traded company…such a move makes good strategic sense and Gold Bullion is hoping the proposed transaction will be completed before the third quarter of this year…that could be optimistic as this type of move typically runs into unexpected delays but the important point is that GBB is going in the right direction with this important asset…Castle is a significant former producer with a lot of unexplored potential for cobalt and silver, in particular, in addition to nickel and copper…GBB has gained 571% since we introduced it to BMR readers 16 months ago and much more excitement in our view is yet to come from the LONG Bars Zone…

Cadillac Mining (CQX, TSX-V)

It’s very disappointing that Cadillac has failed to capitalize so far on the opportunity it has with regard to its “Wasa” claims that are tied on to Richmont’s (RIC, TSX) growing Wasamac deposit 15 kilometres west of Rouyn-Noranda…in this business, it’s critical that companies “seize the moment” especially when something is handed to them on a “Golden” platter…shareholders are understandably becoming a little frustrated, as we are, which helps explain why the stock is sitting at 17 cents…CQX was off 4 pennies last week…the stock is now at its 200-day moving average (SMA) with the next major technical support at 13 cents which is also the 300-day SMA…drilling is now underway on Cadillac ground that was optioned to Visible Gold Mines (VGD, TSX-V)…a total of 7,400 hectares are in that package and VGD, which can earn a 60% interest, is starting with four holes within 800 metres of Vantex Resources‘ (VAX, TSX-V) Moriss Zone discovery at its Galloway Project, 30 kilometres west of Rouyn-Noranda…despite our comments above, the opportunity with Cadillac remains immense given the company’s strategic land package in northwestern Quebec, the astute acquisition of a former Gold-Silver mining camp in Utah, and the tight share structure…the current market cap is only $4.25 million which allows for plenty of upside potential…management’s challenge is indeed to “seize the moment” and capitalize on the excellent opportunities the company has been blessed with in order to drive shareholder value…Richmont’s (RIC, TSX) success at its Wasamac Property west of Rouyn-Noranda should be hugely positive for Cadillac which reported two months ago it’s preparing an exploration program including diamond drilling for its adjacent 100%-owned “Wasa” claims…Richmont, which released a NI-43-101 report on Wasamac April 1, is drilling an additional 35,000 metres to upgrade and further expand resources at this growing deposit where the principal structure hosting Gold mineralization plunges north at a dip between 50 and 55 degrees toward Cadillac’s claims…while there’s no guarantee, of course, in theory there’s certainly the possibility that Cadillac’s Wasa claims at depth could host a significant high-grade extension of Richmont’s deposit…this is what Cadillac will be examining…in addition they’ll be going after some highly prospective VMS targets on the property…the infamous Horne Creek fault runs right through the Wasa claims and Cadillac discovered a zone last year (by deepening the only hole they’ve ever drilled on the property) that’s interpreted to be a feeder system typical of those seen under VMS systems in the Noranda camp…

Abcourt Mines (ABI, TSX-V)

Abcourt announced after Thursday’s close that the company has completed its 18-cent financing, raising a total of $6.3 million with the issuance of 35 million shares…the stock was unchanged for the week as it closed at 17 cents…ABI has very strong support at its rising 200-day SMA of 15.5 cents…boosting its cash position will aid Abcourt significantly as the company continues to drill its two flagship projects, the Elder-Tagami Gold Property near Rouyn-Noranda and the Abcourt-Barvue Silver-Zinc Property near Val d’Or…there’s no question Abcourt is sitting on some tremendous assets that simply aren’t being fully valued by the market…with 150 million shares now outstanding, ABI’s market cap has increased to $25.5 million but that’s still cheap given the assets and potential…the most effective strategy for Abcourt moving forward, we believe, is to re-brand itself as an exploration play only and drop any plans for putting any of its properties into production…all they need to do is drill, drill, drill at both Elder-Tagami and Abcourt-Barvue (they have the cash to do that) as both properties still have considerable exploration upside…as resources increase, other companies will be watching and Abcourt can then put itself into play as a potential takeover target…this would be a much simpler strategy and one that we believe would resonate with investors…with the financing out of the way, we expect more assay results in the near future…the last set of results came out March 3 from Elder-Tagami…mineralization continues to expand to the west of the former underground Elder Mine…the Tagami area to the north, meanwhile, has untapped potential including some higher grades…the latest NI-43-101 resource estimate of 216,000 ounces was released in the summer of 2009…the possibility of Abcourt expanding that resource beyond 500,000 ounces certainly exists given the encouraging results to date (look what Richmont has done at Wasamac)…the last results from Abcourt-Barvue were two months ago from six holes and the numbers continued to be very encouraging…the holes were all drilled 150 to 200 metres from surface and five of them intersected two zones of high-grade silver and zinc…Hole #16 cut 152.26 g/t Ag over 12.7 metres…the 10,000 metre drill program at Abcourt-Barvue continues with the goal of upgrading and augmenting existing NI-43-101 reserves and resources…Abcourt-Barvue is a former producer and one of the best Silver assets in the country with nearly 20 million ounces in all-category reserves and resources (plus nearly 300,000 tonnes of zinc)…the heavy accumulation that began in Abcourt in December was no fluke in our view…this is a company with significant assets that could justify a substantially higher valuation…nearly 60 million shares of ABI changed hands on the CDNX in December and January – record volume for this stock, accompanied by a price jump from 14.5 cents…we’ve seen these type of volume surges before and they are always a very positive sign…Abcourt is being accumulated, and our best guess is that some savvy players like the assets in the ground…continued drilling success and even higher prices for Gold, Silver and zinc would be exciting developments for this stock which has a history of major moves…from mid-2005 to early 2006, Abcourt rocketed from 15 cents to nearly $1.40…

Currie Rose Resources (CUI, TSX-V)

Currie Rose was unchanged for the week at 17 cents but John has identified some very bullish technical signs, including an obvious completed “cup with handle” pattern, as detailed in an article posted during the trading day Thursday…we encourage readers to take another look at John’s write-up and the two charts he provided…from a fundamental standpoint, Currie Rose is now preparing to launch a major drill program that could begin as early as next month…we are particularly excited about the Sekenke Project in northwest Tanzania which we regard as the company’s #1 play as it holds major blue sky potential…Sekenke covers a lot of promising ground and runs in between and surrounds two former high grade Gold mines including one of Tanzania’s original producers…while its Tanzanian properties are the market’s major focus, Currie Rose could also benefit over the coming weeks and months from continued good exploration news from Trueclaim Exploration (TRM, TSX-V) which is currently conducting an 8,000 metre drill program at the Scadding Gold Property near Sudbury…Trueclaim, which released assay results March 4 including 15.78 metres grading 5.36 g/t Au near-surface, has earned a 51% interest in Scadding and can acquire a full 100% interest by completing a feasibility study, paying $2 million to Currie Rose, and giving Currie Rose a 3% net smelter royalty…CUI announced a joint-venture deal January 25 with Australian-based Liontown Resources for Currie’s Jubilee Reef Gold Project in Tanzania…CUI’s focus is on the Sekenke and Mabale Hills Projects, so finding a partner for Jubilee Reef made sense…the deal commits Liontown to at least 5,000 metres of drilling at the property this year which will give Currie Rose a minimum of 23,000 metres of drilling at all of its properties in 2011…while Currie Rose has had its market cap shaved considerably, from a high of nearly $40 million to the current $15 million, what hasn’t changed is the quality of this company’s project portfolio which remains as high as it ever was in our view…Currie Rose has all the cash it needs ($2 million) to complete an initial major round of drilling (10,000 metres) this spring and summer in Tanzania, so there will not be any dilution of the stock at current levels as confirmed by President and CEO Harold Smith…

Richfield Ventures (RVC, TSX-V)

Richfield, moving of course in step with New Gold Inc. (NGD, TSX) was up a nickel last week to close at $9.37…it also announced more outstanding drill results from its Blackwater Project in central British Columbia including 82 metres grading 3.29 g/t Au over the northern section which is a joint venture with Silver Quest Resources (SQI, TSX-V)…of course earlier this month Richfield announced a plan of arrangement with New Gold for a takeover of Richfield (in NGD stock) valued at that point at $10.38 per RVC share or $550 million…the drop in New Gold’s share price has been a knee-jerk reaction to some potential share dilution without investors properly considering the enormous possible benefits down the road to this company if it were to add Blackwater as a producer…we’ve been speculating on a potential buyout of Richfield for some time now…the proposed deal is certainly a very positive fit for New Gold whose New Afton Project in the interior of British Columbia, not far from Blackwater, is on target to start production by the middle of next year…New Gold sees some obvious synergies between the two deposits…Richfield recently outlined approximately 4 million ounces of Gold in the indicated and inferred categories at Blackwater in a NI-43-101 resource estimate released March 2…will another company step into the picture and start a takeover battle for Richfield?…the possibility of that can’t be ruled out, especially with Gold as strong as it is and the likelihood in the minds of some that the current resource at Blackwater could be expanded significantly…we’re now living in a world where there is a fierce battle for resources of all types…Richfield is up 681% since we introduced it to BMR readers in December, 2009, at $1.20…the Blackwater Gold District is still full of opportunity for investors and we encourage readers to check out the web site, www.BlackwaterGoldDistrict.com…we also see great value in New Gold which has been exceeding analysts’ expectations with terrific numbers…New Gold’s AGM is May 4 when the company will also be releasing its Q1 results and no doubt commenting on the potential benefits of the proposed Richfield acquisition…