CDNX and Gold
The CDNX was up slightly overall for the week with Thursday being a crucial short-term bullish turning point. The major markets were getting hit hard Thursday, and so too was gold. Intra-day the CDNX dropped 15 points to 1632, landing right at its rising 20-day moving average. Then came the reversal – the major markets recovered their losses and so did the CDNX, successfully bouncing off its 20-day SMA as it did last month. The Index closed up 5 points on the day on big volume and carried that momentum into Friday with a 19 point gain to close at 1671, a 4 point increase for the week. This type of action is technically very bullish and strongly suggests the CDNX will now take a run at its recent 52-week high of 1691 and quite possibly push through 1700. Gold, after dropping as low as $1,123 early Monday morning, rebounded nicely by the end of the trading week to close at $1,158. All of Gold’s moving averages are in bullish alignment and the recent sell-off from $1,170 to $1,123 was actually healthy from a technical perspective, cleansing Gold’s temporarily overbought condition. This sets up an excellent chance for a successful near-term move through $1,170 and a challenge of Gold’s all-time high of $1,225 set early last December…
The BullMarketRun Portfolio
Gold Bullion Development (GBB, TSX-V)
Gold Bullion Development (GBB, TSX-V) put in an incredible performance this week which culminated in Friday’s massive volume and a record new all-time high for the stock of 42 cents after the release of its LONG Bars Zone Preliminary Block Model for the Granada Gold Property…excluding the recent northeast discovery and a potential new find in the southwestern section of the LONG Bars Zone, the Preliminary Block Model came out with an estimate (non-43-101 compliant) of 2.4 to 2.6 million potential ounces within the defined area…the company also announced that it’s starting a new 20,000 metre drill program at Granada within 2 weeks…investors reacted favorably to the news with the stock closing at 38 cents Friday – up 5 cents on the week – on volume of 8.6 million shares…the number of GBB trades was over 1,000 for the first time ever on a single day for this stock…Gold Bullion has now gained a whopping 443% since we introduced the company to BMR readers just four months ago…with a potential multi-million ounce gold deposit on its hands, Gold Bullion’s current $40 million market cap still considerably undervalues this play in our view…the more drilling at Granada, the better Gold Bullion looks…we believe GBB has the potential to attain a market cap 10 times where it is now by year-end, if not sooner, if it’s able to prove up the 5 million+ ounces that we’re convinced are in the ground at Granada…the company is also a potential takeover target so we anticipate exciting times ahead for Gold Bullion investors…the first of what we expect will ultimately be several drill rigs arrives on the property in a week…speculation is going to be intense moving forward with GBB and we highly recommend investors maintain a core position with this very special situation…
Seafield Resources (SFF, TSX-V)
Seafield seems a little unloved by the market right now but we suspect that’s going to change as the month of May rolls around and exploration ramps up at the company’s promising Colombian gold properties…Seafield closed Friday at 22.5 cents, a 2.5 cent loss on the week despite news that its Miraflores Property contains a NI-43-101 inferred resource of 776,000 ounces of gold…Seafield holds other properties in the immediate area around Miraflores and we believe the company’s plan is to build a package of strategically located deposits in the Quinchia District including MiraFlores and Dos Quebradas… from a technical standpoint, Seafield has dropped below its 100-day moving average for the first time since last summer…that has put some additional downward pressure on the stock which is great for investors who see the value here and want to jump in at these attractive levels or add to their positions…Seafield has tremendous support at its rising 200-day moving average of 18.5 cents…the only explanation for the current weakness in the stock is some supply overhang that still exists from last year’s cheap private placements including a 12.5 cent PP that became free trading just last week…Seafield’s current market cap is just $17.1 million…
Kent Exploration (KEX, TSX-V)
Kent had a surprisingly quiet week, closing unchanged at 18.5 cents…action should heat up next week when investors have a final chance to get their free shares of Archean Star Resources from the Kent spin-off which will be ratified next Friday at Kent’s AGM…Archean Star is expected to begin trading on the TSX Venture Exchange by early May and will hold the Gnaweeda Gold Project as its flagship property…we are extremely bullish on Gnaweeda with drill results due from the Turnberry Prospect by mid-May…Kent’s 100-day moving average has reversed course to the upside, an important technical development…we believe Kent will do extremely well focusing on its highly prospective Alexander River Gold Property in New Zealand (over 600,000 historical ounces) and its Flagstaff Barite Property in northeast Washington State…
Sidon International Resources (SD, TSX-V)
Sidon has been under incredible accumulation over the past 5 weeks with nearly 60 million shares traded, 75% of the entire outstanding shares…Sidon closed the week on a very powerful note, climbing 1.5 cents Friday to 6.5 cents on volume of 5 million…a move through resistance at 7 cents, which we expect could happen next week, will send Sidon north in a hurry…the company announced this week that it’s raising up to $750,000 in a private placement at 5 cents…the financing will help the company complete its option deal to acquire an 80% interest in the high grade Morogoro Gold Property in eastern Tanzania, a mining friendly jurisdiction that revamped its Mining Act a decade ago to spur new investment…Tanzania now has 50 million ounces of reserves, up from just 1 million 10 years ago…the Morogoro Property is in the under-explored eastern area of Tanzania where more gold has come out of the ground than exploration dollars have gone in…Morogoro is full of high grade showings and artisan miners have done extremely well there…Sidon’s market cap is just $5.2 million, so there’s plenty of upside here…trading patterns are similar to those we saw in Gold Bullion and Seafield prior to their big moves to 10 cents and then beyond…
Richfield Ventures (RVC, TSX-V)
Richfield had a strong week and closed at $2.00, up 11 cents from last Friday…the company has started a 25,000 metre drill program at its Blackwater Gold Project in central British Columbia where it made a significant discovery in an 18-hole program last year (most holes were less than 200 metres in depth)…they are first deepening Discovery Hole BW-59 to 700 metres from 329 metres…Richfield reported Monday that the hole was at 509 metres and had intercepted similar volcanic lithologies, alteration and sulphide mineralization as seen in the upper 329 metres…Richfield will be conducting both exploration drilling and resource drilling in the 25,000 metres and hopes to have a 43-101 compliant resource estimate for Blackwater by early next year…given the multi-million ounce potential of Blackwater, the company’s current market cap of only $52 million makes it very attractive from a risk-reward standpoint…
Colombian Mines Corporation (CMJ, TSX-V)
CMJ firmed up this week and closed at $1,35, a 15-cent increase from the previous Friday…the first set of drill results are expected soon, likely next week, from CMJ’s Yarmualito Gold Property…the company has a current market cap of $31 million but holds a very large package of highly prospective properties in Colombia where management has many years of experience…
North Arrow Minerals (NAR, TSX-V)
North Arrow has formed a very nice base at and just above 20 cents…the stock closed at 22 cents Friday for a 2 cent gain on the week…we introduced North Arrow at BMR just recently when it was sitting at 20 cents, and we’re expecting big things out of this company which is run by mining legend Gren Thomas…we’ll be interviewing Gren Monday in Vancouver as we intensify our coverage of this interesting stock which has an impressive portfolio of lithium, diamond, base metal and gold properties…North Arrow has just started drilling its Beaverdam Lithium Property in North Carolina, a follow-up to a successful first round of drilling there last year…we’re expecting some interesting results…the next project on North Arrow’s list is its Lac de Gras diamond play, a joint-venture with diamond guru Dr. Chris Jennings…
Greencastle Resources (VGN, TSX-V)
Greencastle continues to languish but this is a stock we know will make a nice run at some point this year…the company suffered a recent setback with a couple of dry wells in southwestern Saskatchewan where it was hoping to make a significant oil discovery…Greencastle has plenty of cash in the bank, approximately $5 million or 11 cents a share, so at this week’s closing price of 13 cents the stock is barely above its cash value…monthly revenue of about $125,000 continues to flow in from its Primate royalties…Greencastle also has some good gold properties in Nevada along with coal interests in Manitoba…it’s the only stock in the BMR portfolio that has actually dropped in value from the time we introduced it, but Greencastle’s strong underlying fundamentals give us complete confidence it will recover and thrive…
