It’s the final trading day of 2009, so a relatively quiet day is unfolding but the Venture Exchange has cracked the 1,500 level and is currently up 10 points on the day to 1,505…the possibility of a near-vertical spike in the CDNX early in the New Year is a very real possibility, as we have been discussing here in recent weeks, based on technical and historical factors…we do expect the CDNX to take a run at the 2,000 level before a significant correction sets in…gold is finishing the year on a positive note, down from the highs of the day but currently up $5.00 an ounce to $1,097 as of 8:20 am Pacific time…our top pick for the month of January is Gold Bullion Development Corporation (GBB, TSX-V) which we expect to stage a major breakout as its exploration continues at the Granada Gold Property in Quebec…the more we investigate this story, the more excited we get…we’ll be providing an important update on Gold Bullion prior to Monday’s first trading day of 2010…
December 31, 2009
December 30, 2009
Gold is down slightly again today but has recovered from the lows of the morning and at 8:00 am Pacific time is off $5.80 to $1,090.00 an ounce…we continue to hold the view, very strongly, that January is going to be a very bullish month for gold and the junior resource market as a whole…the pick we’re most excited about for January is Gold Bullion Development Corporation (GBB, TSX-V) which is unchanged on the day so far at .095…a breakout appears imminent with this stock which has tremendous technical strength at the moment and a gold property in Quebec we’re very excited about…Kent Exploration (KEX, TSX-V), one of our earlier selections, has firmed up to 19 cents…we consider Kent to be a strong hold going into the New Year along with Seafield Resources (SFF, TSX-V), Colombian Gold Mines (CMJ, TSX-V) and Richfield Ventures(RVC, TSX-V)…all of our selections are up, and some very significantly…we will provide a more in-depth review of our 2009 selections before the 2010 trading year begins…
We generally don’t like speculating on pending drill results because that can be a very tricky business, but yesterday’s news from Gold Bullion Development Corporation (GBB, TSX-V) has raised a few eyebrows. What caught our attention in particular was the third sentence in the second and final paragraph: “The company will also be assaying for silver, copper and nickel in specific holes.” These metals, to the best of our knowledge, have never been reported at the Granada Property (only gold), so why Gold Bullion would want to run assays for silver, copper and nickel is interesting indeed. This is pure speculation on our part, but it’s possible they got some really intriguing visuals from some of the core in the first 11 holes just completed. We could be reading more into this than we should, but the fact they are also so quickly going into another round of drilling is interesting and encouraging also. Another 2,000 metres starts next week. There has been massive accumulation of this stock recently and we do anticipate a breakout very soon.
December 29, 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.
One of the most important investment themes in the resource sector in 2010, we suspect, is going to be an acceleration of majors taking over juniors to add reserves to their balance sheets…an excellent current example of this is the takeover battle for Canplats Resources (CPQ, TSX-V) between Minera Penmont and Goldcorp…Canplats has a low grade, bulk tonnage deposit in Mexico containing at least three million ounces…a future takeover target in our view is Richfield Ventures (RVC, TSX-V) which has made one of the most significant gold discoveries (low grade, high tonnage) in British Columbia in many years…we suggested just recently that investors do their due diligence on this opportunity which is currently trading at very attractive levels considering what they are finding in the ground at their Blackwater Project in the B.C. interior…RVC is up 13 cents this morning (as of 7:50 am Pacific time) to $1.28…while Richfield is not one of those “undiscovered” opportunities like Gold Bullion Development Corporation (GBB, TSX-V) that we normally like to focus on here, we nonetheless believe it is significantly undervalued…it has similar potential to Canplats and should be a top performer as the market continues to head higher and drilling resumes at Blackwater…Richfield’s 50-day moving average, by the way, has now swung positive which is a very encouraging technical development…gold is off $5.00 this morning and we highly recommend using any weakness in gold and quality gold stocks as a buying opportunity…
December 28, 2009
Gold Bullion Development Corporation (GBB, TSX-V) is up 33% since we initiated coverage December 9. That may sound impressive but when we find an undervalued, unappreciated little gem like Gold Bullion and report on it with the urgency we have to our readers, we aren’t introducing you to a stock that’s going to stop at just a 33% gain. That’s a nice and satisfying profit for some but clearly not a home run, which is what this site is all about. We think big and we find the opportunities that have all the potential and ingredients to deliver big.
We discovered Seafield Resources (SFF, TSX-V) at six cents and it jumped as much as 300% from where we initiated coverage (currently, it’s ahead 250% and still a hold). The possibilities are identical with Gold Bullion.
A nice little Christmas gift arrived for Gold Bullion shareholders soon after the market closed December 24 – news regarding the closing of a nearly $1 million private placement with Exchange approval as well on that seven cent financing (this comes just a few weeks after a financing that raised $518,000). The company is now cashed up and in the best position it has been in for several years. In addition, Gold Bullion announced in its Christmas Eve release that it has hired an investor relations group – a very welcome development. By all accounts, Gold Bullion President and CEO Frank Basa is a terrific geologist. Getting an IR firm involved now will help Basa immensely in terms of allowing him to focus his energies on his real strength – utilizing his geological genius to sniff out a very significant gold deposit, or series of deposits, along one of the world’s most prolific mining belts.
There’s an old saying – the best place to find a new mine is next to an old mine. What excites us about the former-producing Granada Gold Mine in northwestern Quebec is not really the near-term potential of actual new gold production (A.C.A. Howe Ltd. gave a non-compliant estimate in 1994 of 280,000 ounces in all categories at Granada), but the possibility of a massive, low cost, open pit, bulk tonnage deposit in the immediate area. The “Cadillac Fault”, a major focus of gold mineralization in western Quebec and eastern Ontario, runs right thru the northern boundary of the Granada property, which exhibits some of the same geological characteristics as Osisko’s huge Malartic Deposit just 40 miles to the east (Malartic contains a 43-101 all-category resource of 10+ million ounces).
For the first time since completing the Granada Mine acquisition in 2006, Gold Bullion is in a position to explore and drill extensively over a wide area of the Granada land package which interestingly continues to grow. And right next to Granada, Yorbeau Resources (YRB.A, TSX-V) is making increasingly significant discoveries at its Rouyn Property which is less than a mile from the northern edge of Gold Bullion’s landholdings. Yorbeau’s market capitalization has rocketed from approximately $14 million to $45 million over the last three months and they are currently in the process of finalizing a $4 million financing. On September 23 Yorbeau reported a 10.35 metre intersection grading 74.67 g/t of gold at its Cinderella zone. We suspect there has been and continues to be some intense staking around this entire area. We know that Gold Bullion has been picking up additional claims but they’re not making a lot of noise about it just yet – that’s the way the game is played.
A few very important sentences were buried in Gold Bullion’s November 18 news release: “Gold Bullion’s present contiguous land holdings are two kilometres wide and seven kilometres long. The exploration reported here (the 471 hole Granada Mine database from 26,000 metres of drilling) represents only seven per cent of its current land package. The defined structures are open at depth and along strike. Gold Bullion has been adding to the land package in the area and expects to develop the property as a large, open pit mine.”
So we have a company that is busy but quietly staking new claims in the Granada Mine area and gearing up for a major exploration effort that will serve two purposes: 1) the creation of a 43-101 resource estimate for the Granada Mine, with new in-fill drilling that could confirm and build on the A.C.A. Howe estimate; and 2) the discovery, possibly, through step-out drilling, of a much larger resource in promising areas around the old mine site (again, keep in mind, over 90% of the area Gold Bullion now controls around the Granada Mine has yet to be explored).
With the market roaring ahead and gold ready to begin a new upleg, we have every reason to believe that Gold Bullion could make a spectacular run early in the New Year as it aggressively tackles the Granada Property and drills it, for lack of a better description, like Swiss cheese. All the factors we look for that can drive a stock price are present right now with Gold Bullion:
1) Financings are closed and approved and the company is cashed up;
2) Major exploration and drilling campaign underway;
3) Neighbor is enjoying exploration success and drilling simultaneously;
3) Excellent geological potential and on trend with a 10+ million ounce deposit just 40 miles to the east;
4) IR has been hired which will bring more focus and many more eyes to this play;
5) Stock technical strength – GBB has as bullish a chart as you could ask for with all moving averages in alignment, neutral stochastics (not overbought), and recent huge volume suggesting massive accumulation;
6) Company President/CEO is heavily invested himself;
7) Strong overall market, so the wind is at Gold Bullion’s back.
Gold Bullion closed at a new 52-week high last Thursday of 10 cents, giving it a current market capitalization of $8 million. After pushing through .10, the next major area of resistance on the charts is 18 cents.
This company has a lot of momentum behind it right now which is one reason we are so attracted to this investment. What’s driving that momentum is a quality gold property with considerable blue sky potential, not to mention proven ounces already in the ground which could be brought to production on a small scale fairly quickly to generate cash flow and keep share further share dilution to a minimum. Stay long on this one, folks, as it likely has a quite some distance to go yet, especially as the market continues to heat up.
Canadian markets are closed today in observance of Boxing Day, but U.S. markets are open and gold, in light trade, has shown some continued strength overnight and is currently ahead $5.80 to $1,111.00 as of 5 a.m. Mountain time…we traveled yesterday on business to Calgary where we’ll be checking into some oil and gas opportunities…
our travel plans were not without some complications which is delaying a couple of our reports but we are posting an update this morning on Gold Bullion Development Corporation (GBB, TSX-V)…we suggest investors check out technical analyst Clive Maund’s updated gold and silver reports at www.clivemaund.com…those articles can be viewed for free by non-subscribers and the gold update includes some important technical information on the CDNX…as we have stated here repeatedly recently, the action in the Venture Exchange suggests that precious and base metals are headed significantly higher and that we could witness a dramatic move in the CDNX to the 2,000 level during the first quarter of next year…we’ll be going into more detail on that in the week ahead…we suggest investors do due diligence on Richfield Ventures (RVC, TSX-V) and Silver Quest Resources (SQI, TSX-V)…they’re not exactly “undiscovered” opportunities but they are very interesting situations that could do extremely well in a major CDNX advance…
December 24, 2009
We wish all our readers a VERY MERRY CHRISTMAS and a wonderful New Year full of peace, joy, good health, and prosperity!
It’s Christmas Eve and markets are open for only three-and-a-half hours today, so trading volumes are rather light…gold is sharply higher while the Venture Exchange is closing in on a new 52-week high which it no doubt will achieve over the final three trading days of the year next week, if not today…we have been very busy here recently, studying the markets and researching the best opportunities including Gold Bullion Development Corporation (GBB, TSX-V) which we believe is on the verge of what could be a spectacular run, and it was our intention to take about a week off from posting but we have decided against that as there are too many dramatic developments unfolding in the junior resource markets…as we have stated here repeatedly this month, the possibility of a massive upside move in the Venture Exchange early in the New Year is very real as gold’s recent correction has run its course…to help prepare our readers, we are working diligently on a significant amount of material that we will be posting this coming Monday morning, Dec. 28, which will give investors a full day to review before Canadian markets resume trading Tuesday…we will cover Gold Bullion Development in further detail and also review all of our 2009 stock picks…we will be providing readers with a few other individual stock selections to consider including Richfield Ventures (RVC, TSX-V)…and we’ll be examining where the CDNX and gold could be headed…so be sure to check back here Monday for an investor’s smorgasbord…we wish all of our readers a very merry Christmas and a New Year filled with peace, joy, good health and prosperity…as an investor, businessman and entrepreneur, I enjoy making money and being a student of the market…2009 has been a very profitable year…money is important, but as a Christian the Bible has taught me a couple of very important principles – always try to maintain an eternal perspective, and make money serve you, not the other way around…food for thought as you enjoy this very special time of the year…Merry Christmas, everyone!
December 23, 2009
As we have been predicting, a major new upleg is underway in the Venture Exchange and the gold bulls are regaining control…there’s no question the Venture will reach a new 52-week high by month end…it is up 22 points to 1444 as of 9:50 am Pacific time this morning, just 22 points off the 1466 high set December 3…gold has firmed up $11.00 to $1,094…we have more to report by tomorrow morning on Gold Bullion Development Corporation (GBB, TSX-V) which is strong at .095 this morning…there’s no question a major breakout is imminent here, and as we mentioned here yesterday we’ll be reporting extensively on Gold Bullion in the days and weeks ahead…it has serious “legs” as demonstrated by the volume breakout we’ve seen, and we are extremely bullish on its Granada Gold Property which is just 40 miles west of Osisko’s (OSK, TSX) massive Canadian Malartic Deposit…the substantially increased competing offer for Canplats Resources Corporation (CPQ, TSX-V) this morning demonstrates how undervalued many juniors still are, and will add fuel to the fire in this CDNX bull market run…