The BMR Portfolio (2nd of 2 Parts)
GoldQuest Mining (GQC, TSX-V)
GoldQuest enjoyed a solid week on improved volume, climbing 2 pennies to close at 26 cents…it traded as high as 29 cents Thursday and Friday…the 10-day moving average has swung positive and provides support at 24 cents, while the 20-day SMA is at 25 cents and could reverse to the upside this coming week after being in a slight decline recently…GQC is one of our favorites with an outstanding portfolio of Gold projects in the Dominican Republic including Las Tres Palmas and Las Animasā¦the company also holds the Toral Silver-Lead-Zinc Project in northwest Spain with an historical (non-compliant) estimate of 5.4 million tonnes grading 9% zinc, 6% lead and 45 g/t Agā¦a 43-101 is currently being prepared on Toral in addition to Las Tres Palmasā¦Las Tres Palmas is an exceptional target as demonstrated by new drill results released this past summer which included 26 metres grading 11.4 g/t Au in LTP-39 and 53 metres of 3 g/t Au in LTP-41 from the Escandalosa Zoneā¦the results extended the known mineralization at Escandalosa to the northeast and south where it remains open in both directionsā¦the Gold occurs as a flat-lying stratiform zone at shallow depth with mineralization interpreted to be part of a larger intermediate sulphidation replacement-style system which has now been defined intermittently over a strike length of 2,100 metresā¦Las Tres Palmas is part of the companyās San Juan Project which was discovered by GoldQuest geologists during the Gold Fields-funded regional exploration program in an area believed to have no previous history of mining or explorationā¦based on results to date, additional drilling at Las Tres Palmas could give GoldQuest a deposit of a million ounces or more at this propertyā¦that is clearly the potentialā¦the initial 43-101 is expected to fall considerably short of that mark with only 42 holes drilled so far but the 43-101 will add fundamental value to the company and provide a base to build onā¦GoldQuest is in the process of organizing its exploration plans for its various DR properties including Las Tres Palmasā¦we expect by January at the latest GQC will be in the midst of a major new drill program in the DRā¦GoldQuest is up 33% since we added it to the BMR Portfolio in late Septemberā¦in mid-2007, when the CDNX was trading above 3000, GoldQuest ran to an all-time high of $1.80 for a market cap of about $100 millionā¦the company has much more going for it now in the DR, and has also since built a strong presence in Spain with a polymetallic project at Toral that definitely has production potential, so the possibilities for GQC going into a very hot market in 2011 are incredibly exciting to say the leastā¦
Sidon International (SD, TSX-V)
Increased volume came into Sidon last week as nearly 6 million shares changed hands on the CDNX though the price remained in a tight range between 9.5 and 10.5 cents, closing down half a penny for the week at a dime…it appears the stock has bottomed out in this area and is ready to move higher on news, whenever that may be…we remain very bullish on the prospects for Sidon though the company seems to be holding its cards close to its chest at the momentā¦we fully expect that Sidonās Morogoro East Gold Property in eastern Tanzania will generate major interest in the coming monthsā¦it also wouldnāt surprise us if Sidon picks up additional land packages in Tanzaniaā¦the share price is underpinned by rising long-term moving averages (100, 200 and 300-day SMAās) which confirms the outlook remains very positiveā¦Sidon is up 100% since we uncovered this diamond-in-the-rough for BMR readers last springā¦
Seafield Resources (SFF, TSX-V)
Seafield was off a penny for the week at 20.5 cents and volume has consistently declined over the past 2 weeks…based on our interview with President and CEO Tony Roodenburg recently, we expect a Quinchia exploration update very soon from Seafield…no assay results have yet been reported from Miraflores where drilling started over 4 months ago…the goal is to increase the 43-101 compliant resource at Miraflores by approximately 25% to 1 million ounces…Seafieldās best prospect at Quinchia is Dos Quebradas…historical drill results as well as recent geophysical and soil sampling work by Seafield suggest Dos Quebradas is a highly prospective porphyry-style target that holds major discovery potentialā¦Seafieldās third property at Quinchia is Chuscal but the company is still waiting for Colombian government sign-off on that deal (expected in the near future)…with a market cap of only $20 million, the risk-reward ratio with this play right now appears to be very favorableā¦Roodenburg stated the company also has plans for its Picachos silver-Gold Property in Mexicoā¦Seafieldās other asset is its Elora Gold Property near Dryden, Ontario, which previously has delivered very promising resultsā¦Seafield is up 242% since we introduced it to BMR readers in the summer of last yearā¦we see strong fundamental value with SFFā¦
Excel Gold Mining (EGM, TSX-V)
Excel is holding its AGM Tuesday, November 9, and we’ll be paying close attention to that for confirmation of Frank Basa’s role in the company…Basa came on board recently as a director…Excel has tremendous potential but the company is seriously lacking leadership at the moment, something Basa could provide in an instant…the company seems to have lost some of the momentum it had built over the summer but that could be quickly regained if the right steps are taken…Excel closed at 14.5 cents Friday, a loss of 1.5 cents for the week…the company recently finalized a $763,000 flow-through financing and a 4,000 metre drill program has started at its Montauban Mining Camp Project, 120 kilometres west of Quebec City…drill targets were selected based on information provided by the most extensive historical compilation of geological data (including over 900 drill holes) ever assembled on Montauban which is a former Gold, silver and base metals producerā¦Excel is down 1.5 cents since we added it to the BMR Portfolio early last month…
Colombian Mines (CMJ, TSX-V)
Colombian was unchanged for the week at 80 cents on low volumeā¦for about 7 weeks now the stock has traded in a tight range between its 100-day SMA and its 200-day SMAā¦our expectation, based on technical and fundamental factors, is that CMJ will ultimately overcome resistance at 95 cents and take off to the upsideā¦traders should be watching this one closely for if and when CMJ gets through 95 cents, its move will likely accelerate rapidly just based on technical factorsā¦on October 13 the company reported assay results for 7 more holes at its Yarumalito Property with the best result being a 151 metre section in porphyry from YAR-24 grading 0.64 g/t Auā¦YAR-14 returned 95.5 metres of 0.70 g/t Auā¦Yarumalito continues to show promise but these are still early days and much more drilling is requiredā¦CMJ is one of the best positioned companies in Colombia with a history in that country and a large package of propertiesā¦the stock is up 25% since our introduction of it late last year (it was up as much as 170% at $1.62 in March)ā¦
I have never been to a AGM,but have the chance to go to EGM’s. What should I look for in this meeting.Thanks for your site I enjoy it very much
Comment by erik — November 8, 2010 @ 7:47 am
AGM’s tend to be a little boring most of the time. We pointed out earlier that EGM does have some blemishes but that’s typical in a turnaround situation like this. With their Montauban Project, the company has a property with major upside exploration potential. The last piece of the puzzle right now is bringing in new people like Frank Basa to make things happen. That’s what to look for in tomorrow’s EGM AGM – getting the right people in place.
Comment by Jon - BMR — November 8, 2010 @ 8:10 am