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January 4, 2011

BMR Morning Market Musings…

Gold is getting hit hard today by profit taking…as of 8:35 am Pacific, the yellow metal is off $30 an ounce at $1,385…Silver has declined 74 cents to $29.93 while the U.S. Dollar Index is up nearly one-quarter of a point at 79.39…the CDNX is taking this in stride, however, which tells us the decline in Gold today is nothing to fear…Gold has also not yet suffered any serious chart damage…the largest single-day moves in Gold throughout this bull market have actually been to the downside and they have consistently presented great buying opportunities…the CDNX got as high as 2312 this morning but has since pulled back…it’s now down 3 points for the day at 2285, jeopardizing a 10-session winning streak…we arrive late tomorrow morning in Rouyn-Noranda to begin a week of research and reporting from one of the world’s most prolific Gold producing regions (due to travel, BMR Morning Musings tomorrow will not be posted until approximately 1:30 pm eastern time)…of course there’s a lot of activity along the Cadillac Trend at the moment and we’ll do our best to present the “big picture” and highlight some of the most interesting opportunities…Gold Bullion Development (GBB, TSX-V) is beginning 2011 with a share price nearly 10 times higher than the first trading day of 2010…GBB is off 2 pennies at 84 cents this morning…we’re looking forward to checking out the Granada Gold Property for the first time since last summer…Cadillac Mining (CQX, TSX-V) and Adventure Gold (AGE, TSX-V) will also be a focus of our attention along with other situations…Cadillac holds over 7,000 hectares west of Rouyn-Noranda, including the strategic “Wasa” claims” which adjoin Richmont Mines‘ (RIC, TSX) Wasamac Property, and the company is also targeting “several” precious metal acquisitions in the Great Basin of the western United States as confirmed in a news release December 30…Cadillac has been trading between 40 and 43.5 cents this morning…in another part of the world, with great interest we continue to closely follow the prospects of Currie Rose Resources (CUI, TSX-V) and Sidon International (SD, TSX-V) in Tanzania…exploration updates from both companies are likely this month…a major drill program is also about to commence at Currie Rose’s Scadding Gold Property near Sudbury…Trueclaim Exploration (TRM, TSX-V) is the operator of that project with an option to earn a 51% interest in Scadding…Currie Rose is down 1.5 cents at 33 cents while Sidon is up half a cent at 19 cents…GoldQuest Mining (GQC, TSX-V) is expected to add nearly $2 million to its treasury this month as the company has accelerated the warrant expiry date from a financing last April…9,465,400 warrants exercisable to purchase one GQC share at 20 cents were still outstanding as of December 24, and the expiry date on those warrants has been moved ahead to January 24…any pressure on the underlying stock over the next couple of weeks as a result of this should be absorbed with little difficulty by the market as the outlook for GoldQuest is so positive for 2011…GQC has an impressive portfolio of properties (advanced and early stage) in the Dominican Republic (drilling has started at its La Escandalosa Project) and a promising zinc-lead-silver deposit (Toral) in northwest Spain…GoldQuest is currently down 2.5 cents to 34 cents…

9 Comments

  1. Nice day on CQX!

    Comment by Rex D — January 4, 2011 @ 1:05 pm

  2. Hey guys any thoughts on gbb performance today? Its quite a drop…

    Comment by muiz — January 4, 2011 @ 1:46 pm

  3. Nice gapfill from 20/12

    Comment by Pat — January 4, 2011 @ 2:25 pm

  4. That was a nasty one day percentage loss for GBB.

    Comment by Forb — January 4, 2011 @ 2:38 pm

  5. GBB BUY BUY BUY WOOOO HOOOOO
    look at the chart! this is the 3rd time in 6 months this bad boy got a bit heated and pulled back to support levels. as BMR mentioned: 0.77 is support which it touched barely today!

    Comment by marc — January 4, 2011 @ 2:50 pm

  6. Indeed. We’ll be reporting on CQX obviously during our visit to Rouyn-Noranda.

    Comment by Jon - BMR — January 4, 2011 @ 2:54 pm

  7. Perfect timing for me to buy GBB…. last time, it dropped to 60 cents – I bought another lot. I am looking for this date … thanks for dumping… I will buy another lot at 75 cents… hopefully my dream will come true…

    Comment by Theodore — January 4, 2011 @ 7:48 pm

  8. For only one million shares… dropped 8 cents… won’t bother me…. Bearing in mind, the placement of 54 cents will come into play…

    Comment by Theodore — January 4, 2011 @ 7:50 pm

  9. Another favorite stock SAG… I started buying at 4.5 cents and today closed at 6.5 cents….

    Comment by Theodore — January 4, 2011 @ 7:51 pm

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