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9:45 am Pacific – VGD Alert

At a time when Gold is surging to new all-time highs and the CDNX is roaring once again,  nothing excites us more than finding a junior exploration company that is aggressive, cash-rich, well-managed and determined to position itself as a major player in one of the most prolific Gold producing areas in the world – northwestern Quebec, home of the famous “Golden Highway” and a multitude of mines, deposits and fresh discoveries.

As many of our readers know, we’ve spent a great deal of time in the Rouyn-Noranda region of  Quebec over the last year with our biggest find so far being Gold Bullion Development (GBB, TSX-V) which has a potential multi-million ounce near-surface deposit on its hands at Granada.  It’ll be exciting to continue to follow the impressive GBB story.

We uncovered GBB for our readers before it became a big story.   And now we’re convinced we’re doing the same with Visible Gold Mines (VGD, TSX-V) which we added to the BMR model portfolio just one week ago.  Visible Gold Mines has a first-rate business and geological team and came out with news today that really jumped out at us, fresh on the heels of a major announcement March 31 regarding a deal with Agnico-Eagle Mines (AEM, TSX).  VGD is a company we believe that’s going to make things happen and turn some heads in the exploration and mining sector in Quebec.  Its senior geologist, Robert Sansfacon, was instrumental in the discovery of Osisko’s (OSK, TSX) massive Canadian Malartic deposit. And its President and CEO, Martin Dallaire, is a highly successful Rouyn-Noranda entrepreneur who knows how to create wealth and build a company.  He has a great feel for the mining industry and has surrounded himself with the right people in order to rapidly develop Visible Gold Mines.

Today’s news from VGD underscores the fact that this is a very eager and aggressive group that’s also going to deliver a few pleasant surprises every now and then.  We learned today the following regarding Visible Gold Mines:

1. In its December option agreement with Cadillac Mining (CQX, TSX-V), Visible Gold Mines did acquire three claims near Richmont Mines‘ (RIC, TSX-V) Wasamac deposit (Cadillac still has a 100% interest in four claims – the Gold structure hosting mineralization at Wasamac dips northerly toward those claims).  We have been very bullish on what has been developing at Wasamac and Richmont is now trading at all-time high.  VGD announced it will soon be moving a rig to its three claims near Wasamac to begin a drill program.

2. Quote from Dallaire in the news release:  “With working capital of nearly $8 million, we continue to investigate additional potential strategic land package acquisitions.”

3. Visible Gold Mines has commenced a drill program very close to Vantex Resources‘ (VAX, TSX-V) Moriss Zone Discovery at its Galloway Project (15 kilometres west of Wasamac) – within 800 metres in fact.  Given the information we’ve seen from Vantex, mineralization trends onto VGD (and CQX) ground;

4. Drilling continues at Visible Gold Mines‘ Silidor Gold Project where the company is testing for potential extensions to the past producing Silidor Mine.  A total of 21 holes have been completed so far with initial results due shortly;

5. Visible Gold Mines has provided its first NI-43-101 resource estimate for its Stadacona-East Gold Property at Rouyn-Noranda – 163,000 inferred ounces with numerous targets yet to test.  From what we’ve seen, VGD has a good opportunity to more than double that initial estimate with continued drilling.  This helps underpin the company’s value.

On March 31, Visible Gold Mines announced a major deal with Agnico-Eagle Mines on AEM’s past producing Joutel Property (the former Eagle, Eagle Ouest and Tebel Gold mines gave birth to Agnico-Eagle in the early 1970’s).  This project is going to be aggressively pursued by VGD and if anyone can unlock the value of it and make new discoveries, it’s Sansfacon who has an incredible track record as a geologist.

An exciting story is unfolding with Visible Gold Mines.  Technically, a reversal to the upside in the stock’s 50-day moving average (SMA) appears imminent which is always a major sign of a change in trend.

Piles of cash.  Strong management.  Large land package with properties of major discovery potential.  Talented geological team.  Aggressive approach with a game plan to succeed.  To us, that means opportunity which is why we’re so excited about Visible Gold Mines.

Note: As always, perform your own due diligence.  The type of stocks we cover at BMR are highly speculative.  Please read our disclaimer.  The writer holds a position in VGD.