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Gold Bullion Development (GBB, TSX-V)

Gold Bullion was off 3 cents for the week at 75 cents but the stock is displaying a lot of inherent technical strength…news also came out Friday morning which has potentially bullish implications…for more than a year-and-a-half, GBB has been consistently supported by its rising 100-day moving average (SMA)…we saw another example of that Thursday when the stock suddenly dropped to 68 cents (just one penny above the 100-day) on a 65-point intra-day downside move by the CDNX…bargain hunters stepped in and GBB strengthened and finished the day unchanged at 74 cents…on Friday, GBB opened 4 pennies lower at 70 cents and then rallied on news that drilling had intersected new mineralized structures in the LONG Bars Zone…the stock climbed as high as 77 cents and closed at 75 cents…new assay results from Granada are expected in the “very near future” as stated in GBB’s news release – we take that to mean anytime within the next couple of weeks – and it sounds like results will once again be solid…the consistency of Granada has been impressive – in fact, the overall picture seems to improve to a certain degree each time new results are released…this is reflected nicely in the chart which shows higher highs and higher lows over an extended period but in an orderly, gradual fashion…GBB is successfully bouncing off a support area on the RSI(14) that it also hit in September and July…the Chaikin Money Flow (CMF) indicator is also showing impressive strength with buying pressure intensifying…John will be updating the GBB chart by Monday morning…Gold Bullion has confirmed that mineralization remains open in all directions at Granada…November’s news showed the LONG Bars Zone is widening from north to south…we hope to see additional evidence of this in the coming news along with a better idea of how things are developing inside the Preliminary Block Model where a significant number of areas still need testing…”hot spots” in the Eastern Extension identified in November were the north, northeast and south…Adventure Gold (AGE, TSX-V) has been getting some interesting prospecting results on its claims in the far south of the Eastern Extension along a porphyry intrusive near the contact between the Timiskaming and Pontiac sediments (geologically, the Timiskaming sediments are considered much more favorable for Gold mineralization but AGE has demonstrated the contact area is very prospective)…AGE also found promising surface showings immediately south and west of the Block Model which, combined with historical information, makes us believe the Granada deposit is certain to expand in those directions plus of course northward and eastward…

Cadillac Mining (CQX, TSX-V)

Cadillac fell 4 pennies for the week but bounced back sharply during the day Friday after hitting an area of very strong technical support at 26 cents, right around the 50-day moving average (SMA)…CQX closed at 32 cents Friday on the highest single day volume in a month…this stock has had a huge run-up the past couple of months, surging from a low of 5.5 cents to a high of 50 cents…a pullback to the mid-20’s, in retrospect, was healthy and normal from a technical standpoint and has paved the way for another potential major surge…there are many reasons we like Cadillac so much and why we believe it could absolutely soar in 2011…the tight share structure (25 million outstanding and 27.5 million fully diluted) is highly attractive and the management team is focused and shrewd….Victor Erickson and Andre Audet also have a combined immense amount of geological and engineering expertise…all of this was clearly demonstrated when the company announced last Monday a very significant precious metals property acquisition in the Great Basin of southern Utah near the Nevada border…the market hasn’t quite caught on to this yet but that’s okay – we have and so have some of our readers…what Erickson and Audet skillfully pulled off, through negotiations with individual landholders, was the acquisition of an entire former mining camp (the “Goldstrike District”) with patented claims that cover a dozen former near-surface deposits…in addition, the company staked further ground, contiguous with the patented claims…those mined deposits very likely feature extensions…our research shows this area has been hugely under-explored despite the production of 200,000 ounces of Gold and nearly 200,000 ounces of silver between 1988 and 1996…not only could there be near-surface extensions but there are parallels here to Nevada where some major deposits have been discovered underneath old heap leach operations…Erickson has a lot of successful experience in the Great Basin and wants to aggressively explore this 15 square kilometre area at Goldstrike….we expect Cadillac will employ some sophisticated techniques to help unlock the potential of this mining camp…they have a wealth of historical data at their disposal which will lead directly to numerous drilling targets…the property acquisition came at minimal expense for Cadillac (no stock issued either) which demonstrates this group’s business savvy – you don’t always have to spend a small fortune and issue vast amounts of paper to acquire a quality project…some of the most successful properties were picked up for a song through careful research which is what Cadillac has pulled off with Goldstrike…two other important situations we’ll be expanding on next week concerning Cadillac – Wasamac (Richmont Mines is close to announcing new drill results and an updated resource estimate) and its partnership with Visible Gold on over 7,000 hectares of ground elsewhere along the Cadillac Trend…our recent visit to Rouyn-Noranda has confirmed without a doubt that Cadillac is sitting on some soon-to-be very hot properties…

Abcourt Mines (ABI, TSX-V)

Abcourt was off a penny last week, closing Friday at 18 cents…the technicals remain extremely bullish though and the fundamentals certainly support a much higher valuation potential given the company’s continued exploration success at its Elder-Tagami Gold Project in addition to the reserves and resources that have been outlined at the Abcourt-Barvue Silver-Zinc Property…so this is a situation we like very much and we’ll be following it closely…the company announced Tuesday (Jan. 18) that it has commenced a 10,000 metre drill program at Elder and Tagami, just north of Rouyn-Noranda, in an effort to build on the 43-101 resource estimate from 2009…additional results from last year’s drilling were also announced, showing a growing western extension of the former Elder Mine…one hole intersected 6.07 g/t Au over 10.9 metres…the company’s goal is to put Elder back into production as an underground operation by sometime next year…production potential is likely around 30,000 ounces per year…a substantial amount of infrastructure is already on site…meanwhile, near Val d’Or, Abcourt‘s Silver-Zinc Property has significant 43-101 reserves and resources that could be mined mostly 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…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…Abcourt recently raised $4 million…with 110 million shares outstanding, its market cap currently sits at just $20 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)

Currie Rose was down a further 2 pennies for the week at 16.5 cents but the stock has clearly stabilized after a steep decline the week before…the stock is at its lowest RSI(14) level since 2005 which strongly suggests CUI is at or very near an important bottom…fundamentally, while its Sisu River Gold Property did not deliver great results from a first-pass program, Currie Rose has an overall very attractive land package in northwest Tanzania which is why we view the current weakness as such an attractive opportunity for patient investors…Sisu River will get another look in the spring (initial results were encouraging enough to warrant a follow-up drill program) but it’s only a very small part of the company’s large Mabale Hills Project where numerous new targets are expected to be identified through satellite imagery and geophysics over the coming weeks…the project we like the most, however, is Sekenke which is approximately 200 kilometres southeast of Mabale Hills…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 from this nearly 300 square kilometre property were outstanding…extensive geophysical work will precede the upcoming 5,000 metre Phase 1 spring drill program at Sekenke…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…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 held up very well last week despite some weakness in the markets and the fact that stock from last September’s financing also became free-trading…what this shows is that much of this stock is in strong hands…Richfield finished the week at $4, an increase of 2 pennies from the previous Friday…recently, for the first time since July, the stock fell below its 50-day moving average (SMA) but the 100-day SMA just above $3.50 should provide impeccable support…the company released results on five more holes January 12…BW-103 intersected 222 metres grading 1.23 g/t Au and 5.5 g/t Ag…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 Jan. 12 (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 233% 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…