BullMarketRun.ca

One of the most important investment themes in the resource sector in 2010, we suspect, is going to be an acceleration of majors taking over juniors to add reserves to their balance sheets…an excellent current example of this is the takeover battle for Canplats Resources (CPQ, TSX-V) between Minera Penmont and Goldcorp…Canplats has a low grade, bulk tonnage deposit in Mexico containing at least three million ounces…a future takeover target in our view is Richfield Ventures (RVC, TSX-V) which has made one of the most significant gold discoveries (low grade, high tonnage) in British Columbia in many years…we suggested just recently that investors do their due diligence on this opportunity which is currently trading at very attractive levels considering what they are finding in the ground at their Blackwater Project in the B.C. interior…RVC is up 13 cents this morning (as of 7:50 am Pacific time) to $1.28…while Richfield is not one of those “undiscovered” opportunities like Gold Bullion Development Corporation (GBB, TSX-V) that we normally like to focus on here, we nonetheless believe it is significantly undervalued…it has similar potential to Canplats and should be a top performer as the market continues to head higher and drilling resumes at Blackwater…Richfield’s 50-day moving average, by the way, has now swung positive which is a very encouraging technical development…gold is off $5.00 this morning and we highly recommend using any weakness in gold and quality gold stocks as a buying opportunity…