BullMarketRun.ca

Gold Bullion Development (GBB, TSX-V)

Gold Bullion closed at 43.5 cents Friday, a 2.5 cent loss for the week…the first quarter was not kind to GBB as the stock dropped in half but we encourage investors to stay focused on the fundamentals that drove this play so hard in 2010 – the growing LONG Bars Zone and the potential of it to develop into a multi-million ounce system…technically, the stock has been under some pressure with declining 20, 50, 100 and 200-day moving averages…however, if one looks at a five-year GBB chart (plot the 300 and 500-day moving averages) it’s not hard to come to the conclusion that the February/March sell-off was merely a correction in an ongoing major bull phase for this stock…the 20-day SMA has the potential of reversing to the upside this week which would clearly be a positive sign though there is certainly some overhead resistance beginning around 50 cents…as our recent article demonstrated, results from over 80 Phase 2 and Phase 3 drill holes (only about one-third of the total drilled so far) demonstrate that the LONG Bars Zone continues to have extraordinary potential…mineralization remains open in every direction with six kilometres of untested strike length going east…continuity between the Preliminary Block Model and the Eastern Extension has been established in our view, though much more drilling in the Eastern Extension is still required…at 43.5 cents, Gold Bullion’s market cap is only $70 million…this seems cheap given the 2.4 to 2.6 million ounce potential of just the Preliminary Block Model area as outlined by GBB nearly a year ago…the NI-43-101 slated to be released this summer will help considerably…while we’re disappointed GBB isn’t in a stronger cash position and that there are still just two drill rigs at Granada nearly a year after the Phase 2 program started, the fact remains that Gold Bullion is sitting on a potentially huge near-surface Gold deposit in one of the best jurisdictions in the world for mining and exploration during the greatest bull market in history for the yellow metal…GBB has gained 521% since we introduced it to BMR readers 15 months ago and we’re sticking with it for the long haul because we believe the best is yet to come from Granada…

Cadillac Mining (CQX, TSX-V)

Cadillac was unchanged for the week at 19 cents with volume drying up considerably…as with Gold Bullion, patience is the key here…the opportunity with Cadillac is immense in our view given the company’s strategic land package in northwestern Quebec, the astute acquisition of a former Gold-Silver mining camp in Utah, and the tight share structure…the current market cap is only $4.85 million which allows for plenty of upside potential…management’s challenge is to “seize the moment” and capitalize on the excellent opportunities the company has been blessed with in order to drive shareholder value…technically, while the chart has suffered some short-term deterioration recently, the stock is strongly supported by a rising 200-day SMA at 16 cents…Richmont’s (RIC, TSX) success at its Wasamac Property west of Rouyn-Noranda is very bullish for Cadillac which is now preparing an exploration program including diamond drilling for its adjacent 100%-owned “Wasa” claims…Richmont, which released a NI-43-101 report on Wasamac Friday, has started a new 35,000 metre drill program to upgrade and further expand resources at the growing Wasamac deposit where the principal structure hosting Gold mineralization plunges north at a dip between 50 and 55 degrees toward Cadillac’s claims…while there’s no guarantee, of course, in theory there’s certainly the possibility that Cadillac’s Wasa claims at depth could host a significant high-grade extension of Richmont’s deposit…this is what Cadillac will be examining…in addition they’ll be going after some highly prospective VMS targets on the property…the infamous Horne Creek fault runs right through the Wasa claims and Cadillac discovered a zone last year (by deepening the only hole they’ve ever drilled on the property) that’s interpreted to be a feeder system typical of those seen under VMS systems in the Noranda camp…Cadillac’s Wasa clams have excellent potential and we’re pleased to see they intend on proceeding with a drill program…actions speak louder than words, however, and investors want to see some positive developments as quickly as possible…other CQX ground along the Cadillac Trend is about to be drilled…Visible Gold is expected to start a 9,000 metre drill program any day now as part of the agreement they worked out with Cadillac in December on over 7,000 hectares of land in the Rouyn-Noranda region…the first four holes of that program will be drilled on ground adjacent to Vantex’s (VAX, TSX-V) Moriss Zone discovery at the Galloway Project west of Wasamac…we encourage readers to listen to our informative interview with Cadillac President and CEO Vic Erickson posted March 4…Part 2 of that interview is coming soon…

Abcourt Mines (ABI, TSX-V)

Abcourt was off another 2.5 cents last week, closing Friday at its still-rising 100-day SMA at 17 cents…the company has arranged an 18-cent financing with Alliance Securities Inc. to raise between $3.5 and $5.5 million…boosting its cash position will help Abcourt but this is a company that needs to tell its story more effectively in order to maximize shareholder value…Abcourt is sitting on some tremendous assets that simply aren’t being fully valued by the market…the most effective strategy for Abcourt moving forward, we believe, is to re-brand itself as an exploration play only and drop any plans for putting any of its properties into production…all they need to do is drill, drill, drill at both Elder-Tagami and Abcourt-Barvue as both properties still have considerable exploration upside…as resources increase, other companies will be watching and Abcourt can then put itself into play as a potential takeover target…this would be a much simpler strategy and one that we believe would resonate with investors…Abcourt released more positive assay results March 3 from its ongoing 10,000 metre drill program at its Elder-Tagami Gold Project near Rouyn-Noranda…mineralization continues to expand to the west of the former underground Elder Mine…the Tagami area to the north, meanwhile, has untapped potential including some higher grades…the latest NI-43-101 resource estimate of 216,000 ounces was released in the summer of 2009…the possibility of Abcourt expanding that resource beyond 500,000 ounces certainly exists given the encouraging results to date (look what Richmont has done at Wasamac)…meanwhile, Abcourt released results February 15 from six more holes at its Abcourt-Barvue Silver-Zinc Property near Val d’Or and the numbers continue to be very encouraging…the holes were all drilled 150 to 200 metres from surface and five of them intersected two zones of high-grade silver and zinc…Hole #16 cut 152.26 g/t Ag over 12.7 metres…the 10,000 metre drill program at Abcourt-Barvue continues with the goal of upgrading and augmenting existing NI-43-101 reserves and resources…Abcourt-Barvue is a former producer and one of the best silver assets in the country with nearly 20 million ounces in all-category reserves and resources (plus nearly 300,000 tonnes of zinc)…the heavy accumulation that began in Abcourt in December was no fluke in our view…this is a company with significant assets that could justify a substantially higher valuation…nearly 60 million shares of ABI changed hands on the CDNX in December and January – record volume for this stock, accompanied by a price jump from 14.5 cents…we’ve seen these type of volume surges before and they are always a very positive sign…Abcourt is being accumulated, and our best guess is that some savvy players like the assets in the ground…continued drilling success and even higher prices for Gold, Silver and zinc would be exciting developments 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 off half a penny for the week at 14.5 cents…the stock is now trading between its 200-day SMA at 17 cents and its 300-day SMA at 13 cents…both long-term moving averages are rising which is a positive sign though the 100-day has recently started trending downward…the rainy season has not been as severe as usual in northwest Tanzania and that’s good news as Currie Rose prepares to launch a major drill program during this second quarter…one of the key technical events we’re looking for with CUI over the coming weeks is a reversal in the 50-day SMA which has been in sharp decline since January and is now starting to flatten out at 17 cents…significant accumulation started in Currie Rose during February and has picked up again recently as demonstrated by the CMF indicator…while its Tanzanian properties are the market’s major focus, Currie Rose could benefit over the coming weeks and months from continued good exploration news from Trueclaim Exploration (TRM, TSX-V) which is currently conducting an 8,000 metre drill program at the Scadding Gold Property near Sudbury…Trueclaim, which released assay results March 4 including 15.78 metres grading 5.36 g/t Au near-surface, is in the process of earning a 51% interest in Scadding by carrying out a $2 million work commitment…Trueclaim can acquire a full 100% interest by completing a feasibility study, paying $2 million to Currie Rose, and giving Currie Rose a 3% net smelter royalty…CUI announced a joint-venture deal January 25 with Australian-based Liontown Resources for Currie’s Jubilee Reef Gold Project in Tanzania…CUI’s focus is on the Sekenke and Mabale Hills Projects, so finding a partner for Jubilee Reef made sense…the deal commits Liontown to at least 5,000 metres of drilling at the property this year which will give Currie Rose a minimum of 23,000 metres of drilling at all of its properties in 2011…while Currie Rose has had its market cap shaved considerably, from a high of nearly $40 million to the current $13 million, what hasn’t changed is the quality of this company’s project portfolio which remains as high as it ever was in our view…Currie Rose has all the cash it needs ($2 million) to complete an initial major round of drilling (10,000 metres) this spring and summer in Tanzania, so there will not be any dilution of the stock at current levels as confirmed by President and CEO Harold Smith…

Richfield Ventures (RVC, TSX-V)

Richfield continues to make many investors very rich…the stock rocketed to a new all-time high of $8.00 last week, closing Friday at $7.93 for a weekly gain of $1.45…RVC is now up 561% since we introduced it to BMR readers in December, 2009…at $7.93, Richfield’s market cap now stands at $343 million…on a fully diluted basis (56 million shares) the market cap is $444 million which puts a value of $100 on each ounce in the ground (Gold equivalent ounces if one includes the Silver) based on the NI-43-101 resource estimate for Blackwater which was released March 2…using a 0.4 g/t Au cut-off grade, the estimated global indicated resource is 1.83 million ounces of Gold (53.46 million tonnes grading 1.06 g/t Au) with an additional 2.34 million ounces in the inferred category (75.45 million tonnes grading 0.96 g/t Au) for a total of 4.17 million ounces…some 20 million ounces of silver are also in the indicated and inferred categories…initial metallurgical testwork has indicated an average of 92-per-cent Gold recovery using conventional whole ore direct cyanidation…the company has also contracted a series of consultants to prepare a Preliminary Economic Assessment (PEA), planned for completion in the fourth quarter of 2011…the study will consider the potential for a large-scale, open-pit mine and ore processing facility…with cash on hand of nearly $17 million, the company has ample reserves to complete a 30,000 metre drill program this year as well as the PEA…given the state of the Gold market and the likelihood of continued exploration success at Blackwater, Richfield’s current market cap of $343 million still gives it considerable upside potential for the balance of 2011…we were very pleased to see that Richfield got a well-deserved buy recommendation recently from GMP Securities which has initiated coverage on RVC with a 12-month target price of $11.10 per share…the primary trend remains up with Richfield and there’s every reason to expect more excellent drill results throughout 2011…we believe the company’s ultimate objective is to find a buyer who can put this deposit into production…if good drill results continue as we expect they will, we’re confident that objective will be met and the takeover price could be significantly higher than the current $7.93 per share…