It is not wise to be “chasing” gold stocks right now, especially overbought ones, as there is little question in our minds that gold is likely headed lower over the very near term as we have warned about here since last week…the short-term oscillators are very overbought and a $100 drop in the price of gold is certainly not out of the question – in fact, it would be a welcome development as that would unwind the overbought conditions and lay the groundwork for new record highs early in the New Year…gold is definitely in need of a rest and we hope it will take one…large gaps have also opened up with its major moving averages, and that too is an important reason for caution…we suggest investors review their portfolios carefully and lock in some profits, particularly on precious metals stocks that are technically overbought…we saw a front page newspaper headline Friday that one typically sees when markets are overbought and about to turn, “New Gold Rush…Metal’s Rapid Rise Sparks Party Craze.” That was the front page story in last Friday’s Vancouver Province, though jewelry (not gold stocks) was the focus of the article…Noront Resources (NOT, TSX-V) has increased its share offer to 86 cents per share for Freewest Resources (FWR, TSX-V) this morning as they try to out-bid Cliff’s Natural Resources…we are very bullish on the Ring of Fire and investors with a little patience should consider putting Noront in their portfolios…fair value on Noront is much higher, we think, than just over $2.00 per share and a triple from current levels during 2010 seems very plausible…in addition, over the short-term, the best Freewest acquisition strategy for Noront is to get its share price considerably higher…also, don’t rule out the possibility of a hostile takeover attempt of Noront…we also like Probe Mines (PRB, TSX-V) and MacDonald Mines (BMK, TSX-V)…we caution, however, that Probe is technically overbought at current levels (48 cents in early trading this morning)…
November 30, 2009
November 27, 2009
We warned about gold being short-term overbought the other day, and sure enough investors got their reason to sell with the Dubai debt scare driving up the U.S. dollar this morning…gold was down as much as nearly $60 an ounce to $1,136 but has since recovered to the $1,170 area by 7:30 am pacific time this morning…
Of more pressing concern to readers of this site is the Ventana (VEN, TSX-V) situation in Colombia…Ventana was halted near the end of yesterday’s trading session and came out with news that the owner of the mineral rights at Bodega has filed an application for arbitration related to an option agreement that would allow Ventana to acquire the deposit…Ventana was down sharply at the open this morning but has since recovered somewhat…all the other Colombian plays are showing a little weakness this morning…we don’t believe Ventana’s battle with the vendor is terribly surprising or cause for great alarm…this has nothing to do with the government or mining laws, and everything to do with individual greed…Ventana’s legal position is solid as a rock…the company also reported yesterday it is in “advanced talks” that could lead to a buyout of the company, which makes us wonder if the problem with the vendor is not part of some sort of power play…we’re likely to see more situations like this in the mining industry with gold at record highs…
Bottom line: The Venture Exchange is in the early stages of a major bull market…the Venture is holding up well this morning and we expect Ventana and all the Colombian plays, including Seafield Resources (SFF, TSX-V), will be headed higher, not lower…
We are continuing to work on finalizing a MAJOR report on Seafield which investors are going to find incredibly interesting…it will clearly lay out our case that Seafield could very well be a 10 to 20 bagger from current levels…we have come to that conclusion after pouring through all the technical data on the Quinchia Property which we expect Seafield will complete its acquisition of very soon (within the next couple of weeks)…this will be a very detailed report and will include comparisons with other significant deposits that are commanding much higher valuations…
November 25, 2009
We’ve been extremely bullish on the Venture Exchange and commodities in general for several months now, and continue to be…we expect a rather dramatic move to the upside in the Venture Exchange during the first quarter of next year, so any weakness over the next few weeks will likely be the “last chance” entry point before a serious blast-off beginning right after Christmas…gold has hit another record high today but it’s clearly in overbought territory and a minor correction could soon set in…we are firmly in the camp however that believes gold is ultimately headed to $2,000 an ounce…we were buyers of Noront Resources (NOT, TSX-V) last week at $1.79, just as it began its run to nearly $2.50, and we will be buying more on any additional weakness in the days ahead…it has been trading between $2.03 and $2.16 today…any dip below $2.00 should be brief and supported by a rising 100-day moving average around $1.85…Noront continues to come out with outstanding results from McFauld’s, and we expect the Ring of Fire to really heat up early next year…if Freewest (FWR, TSX-V) can be taken over for $150 million, what will the take-out price ultimately be for Noront? As nickel prices firm up, and the Venture Exchange overall continues to head higher, we see no reason why Noront can’t hit new all-time highs next year which will mean $8 or better…Probe Mines (PRB, TSX-V) and MacDonald Mines (BMK, TSV-V)
are excellent Ring of Fire opportunities as well…we are currently finalizing a very dynamic report on Seafield Resources (SFF, TSX), clearly outlining our case for a valuation of one to three dollars on this stock in 2010…
November 22, 2009
We viewed Friday’s wild action in Seafield Resources (SFF, TSX-V) as sort of a comical side show prior to the start of the much anticipated main event, which is going to be a meteoric Galway-style move that will dazzle many investors.
As a matter of disclosure, we have a sizeable position in Seafield which we have accumulated since May from a nickel to 19 cents. It is our belief that we will be able to sell our shares between one and three dollars, not tomorrow but soon enough. If you’re a skeptic, then I strongly suggest you carefully read our special report on Seafield which will be posted soon.
There has been massive accumulation of Seafield by some very astute investors over the past few months, and that accumulation is intensifying. Accumulation in the open market and through some cheap private placements.
Hold on to your Seafield shares for dear life. DO NOT – we repeat – DO NOT be fooled or manipulated into selling for a few cents’ profit by the growing number of professional day traders and those (or others) with large positions in this stock who are playing some games, we think, to shake some people loose of their Seafield stock at ridiculous prices.
Folks, this company is sitting on what we have reason to believe is going to be confirmed as a multi-million ounce proven and mineable gold resource in at least three distinct areas at Quinchia in Colombia. Our upcoming special report will go into more specifics on this. With its current market cap of only $9.3 million, a buyer of Seafield is getting gold exposure for next to nothing – an incredible one to two dollars an ounce. That’s how BIG money is made in the markets, and that’s why the likes of Scott Paterson have jumped all over this. And why M Partners got on the phone, we believe, to Tony Roodenburg last Wednesday morning.
Friday was a very busy day for Seafield with accumulation up to .195 cents. We have confirmed that there were no insider sales Friday and we certainly didn’t see M Partners selling any shares (and you won’t see them selling until this stock is much, much higher).
With regard to our site, which is still under development of course, we are pleased to say we will launching a major Internet marketing campaign in the coming days which will draw many more eyes to Seafield, Kent Exploration, and other opportunities we will be presenting here in the near future. Check back often – the next couple of weeks are going to be busy here.
November 19, 2009
With four million plus inferred (non-compliant) gold ounces in the ground at its newly-acquired Quinchia Property in Colombia, one of the hottest gold addresses in the world right now, there is no doubt that Seafield Resources’ 16 cent stock price is soon going to be run over by an onslaught of hungry bulls. Our year-end target price on Seafield is 40 cents, and then the real stampede is sure to begin in January/February when we expect extensive drilling at the Dos Quebradas, La Cumbre, and Juan Tapado targets.
We are not the only ones who are thinking this way. It is very revealing that M Partners out of Toronto has become a new participant in the Seafield market. They were buyers of Seafield for the first time Wednesday morning, following the news regarding Quinchia, and scooped up 491,500 shares that day (all at 15 cents). They added a few more Thursday. What’s significant about M Partners is the fact they were the lead agent, along with GMP Securities LP, in the recent $12 million 50 cent private placement for Galway, and we all know what Galway has done lately and since the beginning of this year (like Seafield, Galway used to be a 5 cent stock). M Partners is very big on Colombia and the fact Seafield now has their attention is, we believe, very, very significant.
M Partners is an independent full service investment bank whose approach to investment is “anything but standardized.” M Partners states on its web site, “Rather than steering clients toward typical investment outlets, the firm strives to create new opportunities and ideas for its accounts. Moreover, M Partners has adopted a keen strategy of focused and relevant research. Such knowledge driven effort combined with the extensive skills of the firm’s management allows the firm to produce successful services ranging from research, to trading as well as advisory engagements.”
M Partners’ eyes are on Seafield. That is very good to know and provides us with additional confirmation that indeed Seafield is going to be a grand slam home run for us.
November 18, 2009
Following yesterday’s market close, Seafield Resources (SFF, TSX-V) reported news that fundamentally changes the company in a way that we believe will ultimately drive the share price even higher than what we have been speculating in recent weeks. In essence, Seafield has smartly restructured a letter of intent with Caribbean Copper and Gold Corporation (CCGC) and is moving ahead to acquire a 100% interest in the Quinchia Property in Colombia (20 kilometres southwest of Medoro Resources’ Marmato Mountain deposit) which has considerable blue-sky potential and currently contains an inferred (non-compliant) resource of 4.3 million ounces of gold.
Previously, Seafield was going to acquire a 50% interest in privately-held CCGC. Now, Seafield will purchase from CCGC “all right, title and interest in and to certain mining claims, options and land packages, located in the Quinchia district of Colombia, as well as all relevant data, drill cores and materials related thereto.” This is a much cleaner agreement and gives Seafield 100% control over a 4,700 hectare district that lies within established infrastructure, including easy access to the Pan-American highway, regional power grid and soon to be refurbished railway, and is located at a relatively low altitude of less than 2,000 metres.
The Quinchia Property 2008 Technical Report, which BullMarketRun acquired recently, is a fascinating 60-plus page read that we will be posting on our site in its entirety shortly.
The Property has three major targets – Dos Quebradas, La Cumbre, and Juan Tapado. Dos Quebradas has an inferred resource of 2.1 million ounces (96.3 m/t at 0.69 g/t) based on just eight drill holes in 2006; preliminary model results for the La Cumbre target indicate 2.2 million ounces of gold (118.3 m/t at 0.58) based on just seven drill holes in 2006; and Juan Tapado, just north of Dos Quebradas, is a known large gold sediment anomaly that has yet to be drilled.
The Technical Summary report states: “Limited diamond drilling and metallurgical test work at Quinchia has been successful at delineating a potentially significant low-grade large-tonnage Au-Ag deposit at Quinchia which is potentially amenable to bulk-tonnage mining and mineral extraction techniques. Quinchia is considered a property of merit…a stage-three exploration diamond drilling program totaling 7.500 metres and additional metallurgical tests is recommended.”
With yesterday’s close at 14 cents, Seafield’s current market capitalization is only $8.4 million. Given the Quinchia acquisition (a formal agreement is expected to be signed shortly), Seafield deserves a significantly higher market cap (if we assign just a $5 value to each inferred non-compliant ounce at Quinchia, Seafield should be trading in the range of 35-40 cents – so one can see how this stock has tremendous upside potential from here).
The new agreement with CCGC also better protects Seafield’s current cash position of approximately $2 million (previously, Seafield would have had to pay $5 million for a 50% interest in CCGC). Seafield will initially pay out $250,000 and five million shares for Quinchia. After one year, Seafield can elect to make a final payment to CCGC of $250,000 and an additional two million shares for a total of $500,000 and seven million shares (or return Quinchia to CCGC). Seafield will also assume underlying property option payments totaling $5.5 million over 30 months.
Our expectation is that Seafield will complete the formal agreement with CCGC very soon (within 30 days) and use some of the cash it has raised recently to begin an immediate and extensive exploration program at Quinchia including the stage-three diamond drilling program recommended in the 2008 Quinchia Technical Summary.
Bottom line: Seafield is headed much higher. It is an immediate and aggressive buy for speculative investors with 10-bagger potential from here by Q1 2010. The Quinchia deal and the closing of the recently announced private placement clear the way for a powerful new advance in this stock. Technically, Seafield is heavily oversold and all moving averages are in bullish alignment (a reversal in the 20-day is expected Wednesday).
We are continuing to work on a major report on Seafield which will be posted on BullMarketRun.com soon. We remind investors that we like to follow the money, and with the Patersons behind this play we are particularly excited about Seafield and its prospects. Seafield’s aggressive push into Colombia will be the focus of attention for investors, but the company has two other very interesting projects (the Elora Gold Property near Dryden, Ontario, and the Picachos silver-gold Property in Mexico) that should generate some additional excitement over the coming months.
November 15, 2009
Independent Research and Analysis of Emerging Junior Resource Companies: Speculative, Undervalued, “Home Run” Opportunities in Today’s Markets
Welcome to our site, or at least a sneak preview of it! The final version will look much different than this as we develop a fully-integrated and very unique business, investment and money-management resource site.
An important component of this site is going to be original research on small and undiscovered junior resource companies that offer very real and significant upside potential. We are extremely selective in the companies we feature and put forward to investors – we prefer quality over quantity. Management is the first thing we look at – it’s our #1 criteria – because without superb or solid management, a company with the best properties in the world is either going to underperform or flat-out fail. As simple as that. So we look for superior management guided by strong business ethics and integrity, followed by an outstanding portfolio of projects.
BullMarketRun.com is completely independent from any companies we cover. We accept no compensation of any kind from any groups, individuals or corporations mentioned on our site. Our stock coverage is for informational purposes only and must not be viewed or interpreted as “buy”, “sell” or “hold” recommendations. No investment opinion or other advice is being rendered on any stock or company. We strongly recommend that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction, and do your own due diligence and research before making any investment decisions. The stocks we cover, by definition, are highly speculative and potentially very volatile. Investors are cautioned that they may lose all or a portion of their investment if they make a purchase or short sale in these speculative stocks. We are not Registered Securities Advisors. Our opinions can only be construed as a solicitation to buy and sell securities when they are subject to the prior approval and endorsement of a Registered Securities Advisor operating in accordance with the appropriate regulations in your area of jurisdiction. It should be assumed that BullMarketRun.com writers and their associates may hold or dispose of or trade in positions in any securities mentioned herein at any time.
November 13, 2009
Wow. What a difference a couple of days make. On Wednesday we stated, “The technical action in Seafield is looking increasingly bullish.” A chart can speak volumes. Sure enough, Seafield powered higher Thursday and Friday. Friday’s strong close on heavy volume (the stock closed above its opening price Friday which was a gap-up from the previous day) suggests Monday and next week could be very interesting.
Seafield’s short-term moving averages have reversed and turned positive. On Wednesday, this stock was nearly as oversold (based on stochastics and the RSI) as it was in July, just before it tripled in value from 5 cents to 15 cents. We believe the next triple is now underway with Seafield which will take it to its all-time highs (around 40 cents) before more consolidation followed by another dramatic move early in the New Year.
From a technical standpoint, Seafield is showing incredible strength and bullishness. This is a stock that wants to go a lot higher, in our view, and for some very sound fundamental reasons:
1. The company has positioned itself, through an option with privately-held Caribbean Copper and Gold Corporation (CCGC), to become a major gold exploration player in Colombia with substantial land packages and four million inferred ounces at the Quinchia Gold Project;
2. Big-money investors, led we believe by former Yorkton Securities President Scott Paterson, have lined up behind Seafield. Using a baseball analogy, Paterson is not interested in a cheap single or a double. He and his partners are in for a grand slam (this is their Ventana);
3. The company has a highly prospective silver-gold property in Mexico (Picachos) which it is likely to re-acquire 100% control of;
4. The company holds the very promising Elora Gold Property near Dryden, Ontario, where drilling has intersected numerous mineralized zones including half an ounce over 21 feet.
We’re speculating, based on its announced push into Colombia and its relationship with CCGC, that Seafield must be eyeing strategic land packages near Ventana or Greystar to complement the Quinchia Project. We are in the process of completing a major report on Seafield which will soon be posted on this site.
November 12, 2009
Seafield has behaved as we expected, finding strong support in the .125-.14 range, and strength in the stock this morning suggests a powerful new advance could be imminent.
We’re thinking this morning as well that since it has not been announced yet, Seafield may not be proceeding with the second (smaller) tranche of its recently announced/proposed private placement at .125. That would be fine with us, as it means less dilution at such a low price. It also clears the path for an immediate rapid acceleration in the stock price. We’ll see what happens.
We are in the process of preparing a major article on Seafield, as we mentioned earlier here.
November 11, 2009
The technical action in Seafield is looking increasingly bullish as the stock continues to show very strong support at and around the 13 cent level. Based on stochastics and the RSI, SFF is nearly as oversold as it was in July, just prior to when it tripled in price from 5 to 15 cents in August. A declining 20-day moving average is also now beginning to flatten out, and we believe it won’t be long before that flips positive and a new up-leg begins from current levels. From a fundamental standpoint, we expect the company very soon to announce the second and final tranche of its recently announced private placement at .125. Once that hurdle is cleared, Seafield will be ready for another major advance and one that will likely take it to new highs.
A reader from British Columbia sent us a very thoughtful email yesterday covering a couple of stocks including Seafield. “Regarding SFF, I like your viewpoint….however, I do not see any disclosure by the company regarding 4 million ounces inferred that CCGC has. How can I confirm this?”, he asked.
BullMarketRun broke the news back in October that the Quinchia Property (held by CCGC, which Seafield has an option to earn a 50% interest in) contains inferred (non-compliant) resources of just over 4 million ounces of gold. This information was indeed not reported by Seafield in its October 1 news release, nor were they under any obligation to report it. The fact that to acquire a 50% interest in CCGC is going to cost Seafield $5 million should alert people to the fact that CCGC is indeed holding some very valuable ground in Colombia, and we have learned through additional reliable sources that they are continuing to assemble a very impressive and strategic land package in that country.
Through some rigorous Internet searching last month, we came across a 67-page geological report on the Quinchia Property which was a fascinating read and confirmed that indeed Quinchia contains four million inferred ounces (non-NI-43-101 compliant) based on drilling to date. There is also a lot of blue-sky potential with this property – mineralized areas that need to be drilled that show considerable promise. Quinchia is a low-grade, high-tonnage, open-pit situation, but we’re certain that CCGC will bring even more to the table which makes Seafield’s relationship with this privately-held company very, very important. CCGC knows Colombia, and no doubt they are also very familiar with any available land packages around Ventana – speculation on our part, but that’s what our job is, to look at the context, connect the dots, and understand all the possibilities. In short, we believe this deal with CCGC is absolutely huge and a game-changer and company-changer for Seafield (obviously the Patersons feel the same way).