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Gold Bullion Development (GBB, TSX-V)

Gold Bullion displayed some technical strength Friday when it suddenly tumbled to 71 cents, an area of very strong support, and then rallied to finish the day (and the week) down just a penny at 78 cents on CDNX volume of just over 1 million shares, the highest volume since January 4…we’ve seen a consistent pattern with GBB since the spring of last year…the occasional spikes in the share price (higher highs each time) have each been followed by pullbacks with higher lows…this time will likely be no different after a 93-cent high December 20…the RSI(14) is now at the 50 level where it has found support since early November and the Chaikin Money Flow (CMF) indicator shows increasing buying pressure…after spending a week in the Rouyn-Noranda area (we’re returning in the near future), we can report that interest in the Granada Gold Property is as intense as ever among the geological crowd we spoke to…everyone is looking forward to more results throughout the year…we remain convinced Granada has strong potential to rival Canadian Malartic in size but of course this will require an enormous amount of additional drilling and investor patience…there are so many potential targets to pursue as the deposit is open in every direction including east (there are at least six kilometres of untested ground to the east) and north (the Yorbeau boundary is at least 1.5 kilometres away)…historical information and prospecting by Adventure Gold (AGE, TSX-V) demonstrate that there are likely extensions west and south as well…there’s also a theory that the many porphyry dykes around the area drilled to date may merge at some point at depth which creates the possibility of a highly mineralized single intrusive mass deep down…uncovering the secrets of Granada won’t be an easy task but it’s sure going to be interesting and potentially extremely rewarding…investors are anxiously awaiting new drill results from the LONG Bars Zone (last results were November 19) but it’s worth reminding readers that it took Seafield Resources (SFF, TSX-V) six months before releasing results from Miraflores that turned out to be spectacular and put the company on the front page of The Northern Miner…what we can discern from the most recent GBB results is that the LONG Bars Zone appears to be widening from north to south which of course is very positive for the geometry of this deposit…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 (one 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 two kilometres east of Phase 1 discovery hole #17)…we expect things could really heat up with Gold Bullion once the company and GENIVAR decide to step out into the heart of LONG Bars Zone 2…GBB has increased more than 10-fold since we introduced it to BMR readers just over a year ago…

Cadillac Mining (CQX, TSX-V)

Cadillac fell 3 pennies Friday to 36 cents on general CDNX weakness but volume was light (only 124,000 shares) and the stock’s overbought condition through the month of December has completely unwound (based on RSI and Stochastics) to where it was in late November before its big move began…the stock has built strong support in the mid-30’s where its market capitalization stands at approximately only $9 million…there are three fundamental factors at work with Cadillac at the moment…#1, the company has signaled to the market on more than one occasion that it’s pursuing a property acquisition (or acquisitions) in the Great Basin area of the western United States (precious metals)…reading between the lines of Cadillac’s last couple of news releases, we believe an announcement could be imminent…”Management is targeting several acquisitions generated from in-house research, data analysis, and prospecting conducted over the past year” (Dec. 30 NR)…such language tells us these potential acquisitions are very well thought out and could give Cadillac a company-making project…#2, Richmont Mines‘ (RIC, TSX) Gold Property at Wasamac, where Cadillac holds strategic claims, is rapidly developing into a very significant deposit after at least 20,000 metres of drilling since last May…an exploration update on this former producer in addition to a new resource estimate is expected very soon…what’s particularly interesting is that the principal structure that hosts the Gold mineralization at Wasamac dips northerly toward the seven claims owned by Cadillac…in addition, from the only hole Cadillac has drilled at its Wasa claims, a hole that they deepened last summer, the company discovered a 300-metre thick altered zone that’s interpreted to be a feeder system typical of those seen under VMS systems in the Noranda camp…it’s clear that Cadillac’s Wasa claims hold considerable value and the company has the expertise to unlock that value…#3, Cadillac has partnered with Visible Gold (VGD, TSX-V) on over 7,000 hectares of prospective ground mostly west of Rouyn-Noranda…Visible Gold is the operator and recently raised $5 million…they have stated they are going to be very aggressive in exploring these Cadillac properties…a substantial land position is held immediately to the south and west of Vantex’s (VAX, TSX-V) Galloway Project…Vantex has doubled in value on high volume since December 30 when it announced that Robert McEwen has taken a significant position in the company…McEwen is bullish on Galloway, and you can be sure he’s well aware of Cadillac’s holdings immediately adjacent to that property…drill results are expected soon from eight more holes from the Moriss Zone at Galloway…we recently met with Cadillac President and CEO Victor Erickson and he’s an impressive individual with a very strong industry background and the ability and determination to make some big things happen with this company…at his side is Andre Audet (VP, Exploration) who also has excellent credentials…we’re extremely comfortable with this situation and the company’s market cap is still only $9 million with a highly attractive share structure…insiders are hanging on tightly to their positions despite the significant increase in the share price over the past couple of months…Cadillac is ahead 65% since we introduced it to BMR readers early last month…

Abcourt Mines (ABI, TSX-V)

Abcourt is the newest addition to the BMR model portfolio at 20 cents early last week…the stock got as high as 23 cents and closed Friday at 19 cents for a weekly gain of half a penny…what first caught our attention with Abcourt was a massive increase in volume in December (record volume for this company)…volume is the best indicator of all that something potentially big is in the works for a stock…John, our technical analyst, picked up on this and then we went to work researching the fundamentals to see if they supported an extremely bullish technical scenario…we were astounded with our findings, and on January 10 I spent time with Abcourt President and CEO Renaud Hinse at the company’s Elder-Tagami Gold Project 10 kilometres northwest of Rouyn-Noranda…Elder is a former producer (over 300,000 ounces between 1944 and 1964) while Tagami is immediately to the north where drilling so far has outlined a 400-metre continuous zone of mineralization in a northeast direction at shallow depth averaging 8.9 grams of Gold per tonne over an average thickness of 2.23 metres as stated in the company’s November 4 news release…Abcourt is getting excellent results from both Elder and Tagami and the goal is to put Elder back into production as an underground operation by sometime in 2012…significant infrastructure is already in place…this is the type of underground mine that could produce about 35,000 ounces per year…a 43-101 completed in July, 2009, gave all-category resources for Elder of 215,000 ounces..a doubling of those resources is very possible given the current drilling success…meanwhile, near Val d’Or, Abcourt holds the Abcourt-Barvue Silver-Zinc Property which has substantial 43-101 reserves and resources that could be mostly mined by open-pit…GENIVAR completed a positive feasibility study for Abcourt-Barvue in 2007 and listed proven and probable ore reserves at 6,823,532 tonnes grading 57 g/t Ag and 3.11% zinc…there are also 43-101 measured, indicated and inferred resources with even higher silver grades…the economics for this project are robust based on GENIVAR’s 2007 study at baseline prices of $15 for Silver and 88 cents for zinc…the project’s pre-production capital cost was estimated by GENIVAR to be between $46 million and $60 million…drilling is on-going at Abcourt-Barvue in an effort to upgrade and augment resources and justify an expansion of the proposed mill from 650,000 tonnes per year to 1 million tonnes per day…Abcourt recently raised $4 million…with 110 million shares outstanding, its market cap currently sits at just $21 million…continued drilling success and even higher prices for Gold, silver and zinc would be extremely bullish 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)

It was a rough week for Currie Rose which fell 15.5 cents to 18.5 cents following release of drill results from the company’s Sisu River Gold Property in northwest Tanzania…this was a first-pass program that gave enough encouraging signs for Currie Rose to decide to plan a major follow-up drill program in the spring, but speculators were looking for a “glory hole”…they were disappointed and dumped the stock with major support levels broken…as a result, CUI dropped as low as 16.5 cents (where there is strong support) before stabilizing and showing a bit of renewed strength Friday…technically, Currie Rose is in heavily oversold territory and bargain hunters have been stepping up to the plate as demonstrated by the very high volume…mediocre results from one drill program won’t deter our enthusiasm for Currie Rose which holds a very large land package in Tanzania’s prolific Lake Victoria Greenstone Belt…much more drilling starts again in the spring, not just at Sisu River but elsewhere at Mabale Hills and the company’s Sekenke Project as well…we’ve stated repeatedly that Sekenke has huge potential as it surrounds and runs in between two former producing high grade mines…early exploration results are very encouraging for Sekenke…extensive geophysical work will precede the upcoming 5,000 metre Phase 1 drill program…Currie Rose has $2 million in the bank…President and CEO Harold Smith says the company will not do a financing at these lower prices and won’t consider one until later in the year after more drilling…concerns about the company accelerating the warrant expiry date from last summer’s financing are unfounded in our view…that of course could put additional pressure on the stock but the company is simply not in need of that money at this time…a major drill program is underway at Currie Rose’s Scadding Gold Property near Sudbury, Ontario…Trueclaim Exploration (TRM, TSX-V) is absorbing the entire cost of that program as part of its commitment in order to earn a 51% interest in the property…Scadding is a former producer and Trueclaim has been delivering some very good results from that property…

Richfield Ventures (RVC, TSX-V)

Richfield continues to consolidate after running all the way to $5.10 in late November…RVC fell 22 another cents for the week, closing at $3.98…for the first time since last July the stock has fallen below its 50-day moving average (SMA) which now means it may test its 100-day (SMA) just below $3.50…stock from the September $1.95 financing (7.5 million shares) becomes free trading next week which could help produce some additional weakness but we suspect most of those players are long-term holders who see the strong possibility of a much higher share price if the drilling success at Blackwater continues…the company released results on five more holes last Wednesday and 222 metres grading 1.23 g/t Au and 5.5 g/t Ag was intersected in BW-103…this hole was collared near the western edge of the Gold Zone, 157 metres southeast of previously announced BW-71 which returned a whopping 281 metres grading 1.40 g/t Au…a second higher grade zone at depth was also discovered in BW-103 (30 metres grading 2.52 g/t Au and 12.3 g/t Ag. from 332 to 362 metres)…three other holes reported Wednesday (BW-98, BW- 99 and BW-102) returned lower grades and widths and fenced off the western boundary of the Gold zone…exploration drilling in a hole approximately 1500 metres south of the centre of mineralization did not intersect any significant values…results are pending on 13 additional holes…another phase of drilling commences late this month as Richfield continues to define a potential multi-million ounce Gold deposit at Blackwater with silver and copper values as well…the primary trend remains up with Richfield and there’s every reason to expect more excellent drill results in 2011…RVC is ahead 232% since we introduced it to BMR readers just over 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…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 approximately $170 million…all indications are that Blackwater is shaping up to be a major deposit…

Greencastle Resources (VGN, TSX-V)

Greencastle firmed up this past week, gaining 3.5 pennies to close at 31 cents…Friday’s close brought it back to its rising 50-day moving average (SMA)…from a technical standpoint, the overall uptrend remains very much intact with Greencastle which we expect will enjoy a strong year as it makes an expected aggressive push with its Gold properties…continued rising prices for heavy crude are favorable as well for VGN…one can sleep well at night holding Greencastle…the company has approximately $6 million in cash, no debt, an oil royalty that brings in over $100,000 each month and was independently valued at over $5 million by an engineering firm a year ago, and three Gold properties with the strong likelihood of an “advanced” fourth project being added to the mix in the near future based on hints in recent news releases…the current market cap is only $14 million…Greencastle is becoming much more active in the Gold exploration space and that means bullish times for this stock in 2011…it’s also interesting to note that President and CEO Tony Roodenburg, a large shareholder in VGN, has refrained from selling any shares in recent months despite the fact the stock price more than tripled in value on high volume…this is different from past runs in the stock and adds further credence to our view that Greencastle is poised for a massive breakout this year…Pinetree Capital has also accumulated more shares in Greencastle, so there’s every reason to be very optimistic regarding this company’s prospects in the days, weeks and months to come…