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The BMR Portfolio (Part 1 of 2)

Gold Bullion Development (GBB, TSX-V)

Gold Bullion traded in a range of 66 to 75 cents last week and closed Friday at 70 cents, a loss of 1 penny for the week…it’s the first time in 5 weeks that GBB has declined on a weekly basis but volume was relatively low and the stock found strong support at the 20-day SMA which is currently at 67 cents…GBB’s chart continues to be a picture of beauty, showing a slow but steady progression from the September low of 53 cents…all moving averages are in bullish alignment, the RSI and Stochastics are at moderate levels while the Chaikin Money Flow (CMF) indicator shows continued strong buying interest…investors are anxiously awaiting new drill results from the LONG Bars Zone (last results were November 19) but it’s worth reminding impatient readers that it took Seafield Resources (SFF, TSX-V) 6 months before releasing results from Miraflores that turned out to be spectacular and put the company on the front page of The Northern Miner…at the moment we’re particularly interested in the new discovery areas in the north and the south for additional confirmation that the LONG Bars Zone is widening…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 (1 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 2 kilometres east of Phase 1 discovery hole #17)…Frank Basa has agreed to an interview with BMR prior to Christmas…he should be tuned up very well for that after 2 recent appearances on Jay Taylor’s show…GBB is up 900% since we introduced this company to BMR readers a year ago…

Cadillac Mining (CQX, TSX-V)

Cadillac Mining is the newest addition to the BMR Portfolio and it enjoyed a powerful week, nearly doubling in value from 17 to 33 cents with nearly 8 million shares traded on the CDNX…the potential of this situation is immense which is why we were so elated to discover it and put it forward to BMR readers for their consideration…while CQX has enjoyed a strong run, its market cap is still only $8.25 million – the lowest of any company in the BMR Portfolio…there are 3 major driving factors that are powering this stock higher…last Monday, Cadillac revealed in a news release that it has been “researching precious metals opportunities” in the Great Basin for the past 2 years…reading between the lines of that release, it’s our conclusion that CQX is likely close to pulling the trigger on what is probably going to be a major property acquisition in “Elephant Country”…the second driving factor is that Cadillac’s “Wasa” Property adjoins Richmont Mines‘ (RIC, TSX) Wasamac Property which is delivering very encouraging drill results…CQX‘s claims at Wasamac cover 164 hectares and are potentially very valuable with the strong probability that Richmont has a new mine in the works here…the principal structure hosting the Wasamac Gold mineralization dips northerly toward the 7 claims owned by Cadillac…in addition, the Horne Creek fault, host to significant mineralization to the northeast, and the related McClay splay, also cross Cadillac’s Wasa Property which is largely untested for its Gold potential…only 1 hole has ever been drilled on these claims and it intercepted a zone that is interpreted to be a feeder system typical of those seen under VMS systems in the Noranda camp…the discovery of an alteration pipe on these claims, and Richmont’s drilling success in the immediate vicinity, underscore the value of this important asset for Cadillac Mining…Richmont continues to drill at Wasamac (they have completed 18,000 metres) and more results and a resource calculation are expected next month…a “strong zone of mineralization” has been intersected between 200 and 800 metres vertical depth and Richmont is exploring the potential for an underground operation…there is plenty of nearby infrastructure…the third driving factor is that Cadillac announced last Monday it has partnered with Visible Gold (VGD, TSX-V) on its other landholdings in the general area (over 7,000 hectares)…VGD is in the process of raising $5 million and is expected to be very aggressive in exploring these properties…if you look at GBB’s new map on its web site, all the areas in light green (primarily to the west of Granada) are held by Cadillac…Gold Bullion also picked up a property (South Kekeko) which is immediately south of Cadillac’s Kekeko Property…record volume surges like we’ve seen with Cadillac over the past few months are typically a tell-tale sign of big developments on the way…a new chapter in this company’s history is underway and we believe it’s going to be a very exciting one…that’s also what the chart is saying…with strong insider ownership and a highly favorable share structure with no possible selling pressure from warrants (no warrants are outstanding), this is a particularly attractive situation…

Currie Rose Resources (CUI, TSX-V)

Currie Rose gained 1.5 cents this past week to close at 37.5 cents on total CDNX volume of nearly 7 million shares…CUI continues to look very strong technically…overbought conditions last month have receded and all the stock’s moving averages are in bullish alignment…the rising 20-day SMA at 32 cents provides exceptional support…this is a really nice picture that suggests the outlook for this company is extremely positive…John will be updating the CUI chart over the weekend…again, we can’t stress enough how important volume is an indicator…this stock has been around for some 40 years and the record all-time trading volume we’ve seen in CUI over the last few months is a hugely bullish sign…we first mentioned CUI to our readers nearly 3 months ago when it was sitting at a dime…we added it to the BMR Portfolio at 16 cents in late October…what’s driving this interest in Currie Rose is a growing appreciation of the company’s potential in Tanzania where it is focusing on 2 major projects (Mabale Hills and Sekenke), approximately 200 kilometres apart, in the prolific Lake Victoria Greenstone Belt…with the Sisu River Gold Property, which is part of the Mabale Hills Project, investors are looking for a possible repeat of Currie Rose’s early success in 2005 just 8 kilometres to the southwest at Mwamazengo…14 holes totaling nearly 1,500 metres were completed through mid-November at Sisu River and initial assay results are expected soon….the company reported that “good source rocks have been intersected beneath the ‘mbuga’ clays”…we can’t help but think a discovery could be in the making here, perhaps similar to what occurred at Mwamazengo…the drill program at Sisu River is focusing on an area that has returned excellent sampling results and where artisanal miners made a discovery in the fall of last year…the quartz porphyry target at Sisu River is hosted within felsic volcanic rocks, generally considered to be favorable hosts for Gold in greenstone belts around the world…in mid-November Currie Rose also gave more details on its Sekenke Gold Project which is 200 kilometres southeast of Mabale Hills…we are extremely bullish on this major land package as it runs in between and surrounds 2 former producing high grade mines…the company has already identified a large structure (12 km by 800 metres) within a shear zone on the margins of a large granite intrusion that hosts numerous vertical quartz reefs of the same type that developed at the nearby former mines…Currie Rose is ready to initiate significant pre-drilling work (high resolution satellite imagery, geophysics, etc.) at Sekenke in order to prioritize drill targets for the spring…the former high grade Sekenke mine was one of Tanzania’s original Gold producers and a significant one but it’s quite possible they missed the main deposit which could actually be on the ground that Currie Rose holds…

Richfield Ventures (RVC, TSX-V)

Richfield has been consolidating the last couple of weeks after hitting a new all-time high of $5.10 in late November…it closed at $4.60 Friday for a loss of 25 cents for the week…the stock has essentially held at or above its 20-day SMA since its big move began in late July…currently, the 20-day moving average is at $4.30, so any additional weakness has to be considered a favorable opportunity…RVC is up 283% since we introduced it to BMR readers nearly 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 in central British Columbia…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 $176 million…Richfield recently announced very positive metallurgical results and also more outstanding drill results including 171 metres (from 8 to 179 metres) grading 3.13 g/t Au in BW-91…this hole was collared 50 metres south of BW-87 which cut 115 metres grading 2.59 g/t Au and demonstrates the southward continuity of strong near-surface mineralization between the 2 holes and the potential for a further extension to the south…the deposit is also expanding to the east as BW-90 intersected 148 metres grading 1.77 g/t Au…all in all, this is shaping up to be a major deposit which also has silver and copper values…it looks like it’ll be a cold and snowy winter in British Columbia, but Richfield has a fully winterized camp and should be able to drill with at least 2 rigs without any interruptions throughout the winter…

Greencastle Resources (VGN, TSX-V)

We are more bullish than ever on the prospects for Greencastle given what has happened with related company Seafield Resources (SFF, TSX-V)…Greencastle was up 2.5 cents for the week to close at 37.5 cents, a whopping 168% increase since we added it to the BMR Portfolio just 2 months ago…it hit a new 52-week high of 44.5 cents on Monday on its strongest trading volume (2.6 million shares) since mid-2008…we’re not sure if Greencastle still holds an equity position in Seafield (VGN did report “marketable securites” valued at $807,000 as of September 30) but events with Seafield are going to have a fundamental impact on Greencastle to create a “Perfect Storm” scenario for VGN shareholders…Tony Roodenburg is President and CEO of both companies and we have a lot of respect for his management style and ability to build value in a company…just a year-and-a-half ago,Seafield was trading at only a few pennies with just enough money in the bank to pay the rent and keep the lights on…he brought some major players to the table with Seafield who have now done incredibly well after a sizeable Gold project (Quinchia) was put into that company…it only makes sense that at least some of these players are going to follow Roodenburg into Greencastle which has already ramped up its activities significantly since mid-October when it acquired a substantial land package near Richfield’s Blackwater deposit…a heli-borne magnetic and electromagnetic survey has already been completed over that property…Greencastle also just recently announced it’s looking at adding another Gold play to its portfolio, an “advanced” project that would become the company’s fourth Gold property as it also holds Indian Creek and Jewel Ridge in Nevada…in clockwork-like fashion, Greencastle has experienced 3 powerful moves (very sharp spikes) over the last 7 years (late 2003, early 2006 and mid-2008)…2006 was more intense than 2003, and 2008 was stronger than 2006…we’re certain that a very powerful fourth major move in VGN is now well underway, driven by the company’s recent shift in corporate strategy to get much more active in the Gold exploration space, which could ultimately take VGN to new all-time highs…volume has picked up dramatically in this stock since late October which is what one would expect in the early stages of a major move…at 37.5 cents Greencastle’s market cap is still a very modest $17 million…the company has a large cash position (working capital of $6 million), regular monthly income of over $100,000 from an oil royalty valued at over $5 million by an engineering firm a year ago, and has recently hired two IR companies to tell its story…Greencastle seems primed, in our view, for its biggest run ever in the first quarter of 2011…