Precious metals are weaker today, along with a broad range of commodities, due to a stronger U.S. Dollar and some action by the Chinese to cool “excessive speculation” in their commodity futures markets…Chinese authorities have raised trading margin requirements for their major futures markets in a move aimed at “speculators”…market interventions by governments often don’t work very well and notoriously have unintended consequences for the longer term…”speculators” also drive prices down, not just up…as of 9:10 am Pacific, Gold is down $19 an ounce to $1,356 after dropping as low as $1,350…Silver is off 78 cents to $26.81 while the U.S. Dollar Index is currently up nearly two-thirds of a point to 80.36…all we have to look at though is the action in the CDNX, our most trusted and reliable leading indicator with regard to Gold and commodities in general, to know that the next big move in precious metals and commodities is up, not down…the CDNX is holding up extremely well this morning even in the face of weakness in Toronto and New York (there are shortened trading hours in the U.S. today by the way due to the Thanksgiving holiday)…the CDNX fell as low as 2033 but has bounced back and is now down just 1 point at 2048…we continue to be in the midst of a bull market of historic proportions which we strongly believe will intensify considerably by January…Currie Rose Resources (CUI, TSX-V) is on fire and has now quadrupled in value since we first brought this company to our readers’ attention in September…after jumping a nickel yesterday, CUI is climbing hard again today, reaching a new 52-week high of 42.5 cents…the market is really starting to like what what it sees in CUI’s Tanzanian properties which hold enormous potential as we have been stating repeatedly here at BMR over the last couple of months in particular after we did some extensive due diligence…technically, Currie Rose has broken through important resistance in the low 30′s…as of 9:10 am, CUI is up 3.5 cents to 37.5 cents…another company the market has really yet to fully appreciate, in our humble view, is GoldQuest Mining (GQC, TSX-V) which is developing significant resources in the Dominican Republic and Spain…we added GQC to the BMR Portfolio in late September (at 19.5 cents) and this company is one of our top picks for 2011…we suggest investors look at GQC very closely for its potential in the DR in particular where it has been active for a decade…Gold Fields Ltd. is the major shareholder in GQC which will be resuming drilling shortly in the DR where it holds a large number of advanced and early stage exploration projects…it appears GQC is also developing a major Gold resource at its La Escandalosa Project (formerly Las Tres Palmas)…this is a stock that got as high as $1.80 in 2007 on considerably less than what it has now…GQC is up a penny this morning to 29.5 cents…Gold Bullion Development (GBB, TSX-V) is off 1 cent to 66 cents…GBB has had a strong week and its chart is looking very favorable…more drill results are expected in the near future from the LONG Bars Zone which is showing exciting new potential to the north and the south…the market hasn’t fully grasped that yet but at BMR we know Granada very well and the “truth machine”, the drill rig, is telling us the LONG Bars Zone is developing exceedingly well…Troymet Exploration (TYE, TSX-V), which we mentioned at BMR a little while back when it was in the high teens/low 20′s, hit a new all-time high of 41.5 cents this morning…Troymet has some highly prospective ground in very close proximity to Richfield’s Blackwater deposit in central British Columbia…we haven’t had time yet to do a detailed analysis on Troymet but we suggest investors check it out closely as it appears to have strong potential…technically it looks overbought at the moment, so we suggest being patient and wait for a possible pullback…
November 26, 2010
BMR already has one Tanzanian play (Currie Rose Resources, CUI, TSX-V) which has been a terrific performer of late, more than tripling in value since we first brought it to the attention of BMR readers in September. But what about Sidon International Resources (SD, TSX-V) which continues to hover around a dime after exploding from a low of a nickel in the spring (when we added it to the BMR Portfolio) to 18 cents by early August?
Sidon’s share price has certainly under-performed in recent months but we continue to remain very confident with this company as we believe its Morogoro East Gold Property in east-central Tanzania holds great potential. We also wouldn’t be surprised if the company picked up additional ground in that country. Sidon seems to have a well thought out strategy for Morogoro East and the fact the share price has stalled doesn’t mean there isn’t progress on the ground there – just check out Sidon’s November 15 news release. The company has also hired IR and they’ll soon have a new web site. They’re improving in the important communication area, a concern for us earlier, and this bodes well for the future.
Yesterday, Andrea – one of our many loyal readers – asked about how Sidon looks technically in terms of its chart. So John went to work and has produced an updated chart analysis for SD that readers should find interesting:
John: Yesterday, Sidon International Resources (SD, TSX-V) opened at 10 cents, drifted to its low of 9.5 cents, rose to its high of 10.5 cents and closed at 10 cents for a gain of half a penny on CDNX volume of 1.4 million shares.
Looking at the 6-month daily chart we see that the price started to move up from consolidation at 5 cents on July 9 and reached a high of 18 cents on August 1. Then for 2 months, until October 1, SD consolidated in a downsloping flag only to drift lower until November 1 when it started to trade in a horizontal trend channel between 9.5 cents and 10.5 cents. It is still trading in this range today. This channel has formed a very strong support band which has not been violated to the downside in the last 19 sessions. The EMA(20) provides strong close bullish support and at present it is at 10 cents, at mid-point of the support channel, exactly where we expect it to be during consolidation.
The set of Fibonacci levels shows the next target as 22 cents (this is not a BMR price target as we don’t give price targets but a theoretical near-term Fibonacci level as a guide for investors based on technical analysis). The average daily volume has been declining since the consolidation began on August 1, nearly 4 months ago, validating the consolidation. The volume yesterday was the highest in the last 8 sessions and was more than 4 times Wednesday’s volume. Volume levels must be watched carefully as rising volume often precedes price.
Looking at the indicators:
The RSI is at 48% and moving off a 2-month upsloping trendline – bullish. The Slow Stochastics has the %K (black line) flat at 22%, below the %D (red line) at 28%, and pointing down. Thus a crossover is possible in the near future. If a crossover does occur it will be low on the scale thus the %K and %D will have plenty of room to move higher before becoming overbought. The ADX trend indicator shows the +DI (green line) crossed up over the -DI (red line) on October 22 and has been bullish ever since. Yesterday, +DI was at 19 and above -DI at 13 with the ADX (black line), the trend strength indicator, rather low and flat at 18. This orientation shows a weak bullish trend.
Outlook: The chart and indicators are telling us that SD has been in a consolidation mode for 4 months and a strong solid support base has been formed. The sign for a move up will be a significant increase in volume and a close above 10.5 cents. We must be patient.
November 25, 2010
It’s a relatively quiet day in the Canadian markets due to American Thanksgiving, and trading will be light again tomorrow with an abbreviated session for American stocks…we wish our Americans a very special Thanksgiving…Gold, as expected, is trading in a narrow range today due to the American holiday…the yellow metal has traded between $1,369 and $1,377…as of 8:10 am Pacific, Gold is unchanged at $1,373…Silver is quiet as well at $27.49 while the U.S. Dollar Index is now unchanged at 79.65 after touching major resistance at 80…the greenback has rallied considerably recently but Gold has held its ground which is very bullish for the yellow metal…the CDNX is up 7 points to 2031…the run this market is on is truly incredible and we expect an explosive new phase to really take hold by January…Gold Bullion Development (GBB, TSX-V) is unchanged at 68 cents as of 8:10 am Pacific after dropping as low as 65 cents this morning…Jay Taylor’s interview with Frank Basa has certainly brought new eyes to GBB, and the market has now had a chance to properly digest last Friday’s latest drill results which demonstrate the LONG Bars Zone is widening…the targets seem to be endless for GBB as there are several kilometres of highly prospective strike length to the east still to explore and promising new showings in the north and the south as well…prospecting by Adventure Gold (AGE, TSX-V) has also proven that the west cannot be overlooked, either…AGE is down 1.5 cents to 47 cents…Currie Rose Resources (CUI, TSX-V) has hit a new 52-week high of 30 cents as investors start to gain a better appreciation of the potential of CUI’s Gold properties in northwest Tanzania, specifically the Mabale Hills and Sekenke Projects…Currie Rose is hoping for a repeat of its immediate success at Mwamazengo in 2005 with drilling that is currently taking place approximately 8 kilometres northeast of Mwamazengo at Sisu River…RC drilling commenced a month ago at Sisu River and initial assays are pending…GoldQuest (GQC, TSX-V) is stronger this morning, up 2.5 cents to 28.5 cents…we love what this company is doing and putting together in the Domincian Republic and Spain…GQC, whose major shareholder is Gold Fields Ltd., has a large number of promising properties in the DR with the most advanced being La Escandalosa (formerly Las Tres Palmas) and Las Animas…the company announced an initial 43-101 inferred resource for La Escandalosa November 16 (406,000 ounces of Gold plus copper, zinc and silver credits as well) but this has the potential of growing substantially as not all of the mineralized area was included based on the drilling density at this time…the inferred resource took into account only 25 holes drilled at Escandalos Sur between 2006 and 2010 (3,300 metres)…it’s modeled as a flat-lying body, 600 metres by 500 metres…hydrothermal alteration and Gold mineralization, however, have been traced for about 2,200 metres from Hondo Valle (north of Escandalosa Sur) to La Hilguera (south of Escandalosa Sur)…the geometry of the deposit at La Escandalosa makes it suitable for open-pit mining…the source of the mineralizing fluids remains unknown which is interesting…there’s clearly exploration potential for the discovery of mineralization in structural feeder zones or possibly in a porphyry copper-Gold type system…La Escandalosa could quite easily turn out to be a 1 million+ ounce Gold deposit and the company (all cashed up) is getting ready to start a major drill program aimed at upgrading the current resource and testing potential to the north and the south…in Spain, GQC holds the Toral Zinc-Lead-Silver Project with a 43-101 resource estimate currently being prepared on that deposit…Seafield Resources (SFF, TSX-V) had a powerful day yesterday, gaining a nickel to 24 cents on CDNX volume of nearly 4 million shares…Seafield was written up by newsletter writer Brien Lundin who’s quite bullish, as we are, on the prospects for Quinchia…we hope Seafield can deliver an exploration update in the very near future…SFF is currently down a penny at 23 cents…Sidon International (SD, TSX-V) is up half a penny to 10 cents…patience is required with Sidon, like with Seafield, but SD has been forming a very nice base around a dime and it therefore has the potential to move suddenly to the upside…Sidon continues to make progress on the ground at Morogoro East in Tanzania…
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 may look much different than this as we continue to develop a very unique investment and money-management resource site. An important component of this site is original research on small and undiscovered junior resource companies, mostly in the gold exploration space, 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.
We use a combination of fundamental and technical factors in determining the value and potential of a stock. In terms of fundamentals we look for a company with a superb project supported by strong management. Management must possess integrity, solid ethics and a determination to succeed and build shareholder value.
At BullMarketRun (BMR) we approach the handling of money from a biblical perspective and this is an important topic we will be sharing with our readers (and listeners) as the site continues to develop.
BullMarketRun.com is completely independent from any companies it covers. BMR accepts no compensation of any kind from any groups, individuals or corporations for coverage of any company mentioned on this site. We accept no advertising either. 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 BMR personnel, writers and their associates may hold or dispose of or trade in positions in any securities mentioned herein at any time. Owner/Publisher of BullMarketRun.com is Terry Dyer of Langley, British Columbia.
It’s a very special day in the United States – Thanksgiving – and we’d like to take this opportunity to wish our American friends a Thanksgiving full of many blessings. The past couple of years have been difficult ones south of the border but our prayer is that on this Thanksgiving especially, Americans will reflect on how much they can truly be grateful and thankful for and how God has blessed their nation in so many ways.
November 24, 2010
One of our top picks going into 2011 is GoldQuest Mining (GQC, TSX-V), a company that has been active in the mining-friendly Dominican Republic for a decade and has assembled a truly impressive portfolio of advanced and early stage Gold properties with silver and base metal potential as well. We’ll be reporting more on GoldQuest again in the very near future but we encourage investors to look into this company closely because we see a real opportunity at its current price of 26 cents, giving it a market capitalization of only $24 million. GQC has far more going for it now than it did back in 2007 when the share price shot up to $1.80 for a market cap of $100 million. Technically, John very much likes what he sees with GoldQuest at the moment and has provided us with an updated chart analysis immediately below our quick review of GQC’s fundamentals.
Just over a week ago, on the day the CDNX fell by as much as 80 points to 1902, GoldQuest came out with news regarding its La Escandalosa Project (formerly called Las Tres Palmas) in the DR, 120 kilometres east of Pueblo Viejo – one of the world’s largest Gold deposits with proven and probable reserves in excess of 22 million ounces.
Based on just 25 drill holes (3,291 metres), GQC has already outlined an inferred resource of 406,000 ounces of Gold at Escandalosa Sur (nearly 5 million tonnes grading 2.59 g/t Au at a 0.30 cut-off). Mineralization is stratiform and flat-lying. The deposit, which also includes copper (0.16%), zinc (0.21%) and silver (2.34 g/t), is 600 metres along strike and 500 metres wide. The geometry makes it suitable for open-pit mining, and the really exciting thing is the potential for outlining a much larger deposit. Alteration and Gold mineralization have been traced for about 2,200 metres from Hondo Valle (north of Escandalosa Sur) to La Hilguera (south of Escandalosa Sur).
A three-year permit extension has been received for the La Escandalosa concession and all requisite environmental approvals are now in place for drilling to proceed. A comprehensive drill program is expected to begin shortly aimed at upgrading the existing resource and testing potential extensions to the north and south. The source of the mineralizing fluids remains unknown at La Escandalosa, leaving open the possibility of the discovery of mineralization in structural feeder zones or perhaps in a porphyry copper-Gold type system.
GoldQuest has many other targets of considerable merit throughout its large DR land package including Las Animas which has a 43-101 inferred resource of 129,000 ounces of Gold, 2.5 million ounces of silver, 106 million pounds of copper and 130 million pounds of zinc.
In Spain, Goldquest holds the Toral Zinc-Lead-Silver Deposit which has an historical (non-43-101 compliant) resource of 5.4 million tonnes grading 9% zinc, 6% lead and 45 g/t Ag. A 43-101 on Toral is currently being prepared. GoldQuest has also acquired a second polymetallic project in the area (Lago, just a 20-minute drive from Toral), and more details are expected upon approval from the Spanish government of a mineral rights application for the property.
We are in a bull market of historic proportions and the timing for GoldQuest couldn’t be better, so fasten your seatbelt. This company has a lot going for it with major blue sky potential for 2011 as the drills turn and results pour in from the Dominican Republic.
GQC Updated Chart Analysis
John: Today, Goldquest Mining(GQC, TSX-V) opened at 25 cents, its low, and then closed at its high of 26 cents for a gain of 1 penny on CDNX volume of 334,000 shares.
Looking at the 3-month daily chart we see that between September 1 and October 9 the stock climbed steadily from 11 cents up to a high of 32 cents and then retraced down to 20 cents. Then, on October 28, a bullish reversal occurred and the share price climbed back to 31 cents from where it retraced again to 25 cents. The period from October 12 to today has been a consolidation. The average daily volume during this time has been declining, thus validating the consolidation.
The volume today was 2 times that of Tuesday and the highest in the last 6 sessions. Today’s candle was bullish. The support at 25 cents coincides with the 38.2% Fibonacci retracement level which makes this support extremely strong.
A blue downsloping trendline is drawn on the last retracement. A breakout above this blue line will signal the start of another move to the upside. The Fibonacci target at 40 cents shown on a previous chart is still valid.
Looking at the indicators:
The RSI is at 47% and pointing up. It has just bounced off support (orange horizontal line) – bullish.
The Slow Stochastics indicator has the %K (black line) pointing down but starting to turn up toward the downsloping %D (red line). It could cross up above the %D in the near future. This must be watched carefully.
There are 3 vertical green lines drawn on the chart, each depicting a %K crossover of the %D. When this occurs there is a reversal in the stock price. Thus, if the %K crosses up over the %D in the near future, we can expect an attempted breakout of the share price above the downsloping blue line – very bullish.
The ADX trend indicator has the +DI (green line) rather low and flat at 24 and above the -DI (red line) at 19. The ADX (black line) trend strength indicator is gently sloping down at 26. This indicates the bullish trend is very slowly weakening which is to be expected during a consolidation. Note the vertical blue line which shows where the +DI crosses above the -DI and changes the trend from bearish to bullish. This occurred during the first week of September and the trend has remained bullish since then. This is a very bullish orientation.
Outlook: Both the chart and the indicators show how close we probably are for another move up in the share price. Two things to watch for are the breakout above the blue trendline and the crossover of the Slow Stochastics. GQC is looking very strong and its 20, 50, 100 and 200-day moving averages are all in bullish alignment.
Gold has traded between $1,369 and $1,382 so far today…as of 8:55 am Pacific, the yellow metal is off $3 an ounce at $1,373…tensions between North and South Korea are likely to limit any potential pullback in Gold…Silver is down 4 cents at $27.47 while the U.S. Dollar Index is up one-tenth of a point at 79.72…the CDNX continues to hold above 2000 which is positive…the Venture is ahead 7 points at 2009…markets are up significantly in Toronto and New York…on the day before American Thanksgiving, the Dow is posting a triple digit gain…there were some positive economic reports out of the U.S. this morning…consumer sentiment rose to its highest level since June on tentative signs of improved job conditions and early discounts for retailers…new U.S. single-family home sales fell unexpectedly in October, however, and prices dropped to a 7-year low…Gold Bullion Development (GBB, TSX-V) is unchanged at 65 cents after staging a strong rally from the 60-cent level yesterday…GBB got a boost from a Jay Taylor interview with Frank Basa…Taylor has a solid reputation and we’re glad to see he may finally be picking up on the story…BMR will be doing its own interview with Basa in the near future…Basa confirmed in the Taylor interview what we’ve been reporting the last several days since the release of more drill results last Friday from Granada…the LONG Bars Zone is indeed widening (north to south) with several kilometres of very prospective strike length to the east still to explore…volume on GBB is actually higher on the ALPHA market today (424,000) than the CDNX (299,000)…Basa made an indirect reference to Adventure Gold (AGE, TSX-V) on the Taylor show, saying other companies are getting good results in the general area around Granada…we spoke with Marco Gagnon from Adventure Gold last night and he’s very excited about what’s developing at Granada…investors should take a close look at AGE’s chart which is extremely impressive as John pointed out in his article last night…AGE is currently unchanged at 45 cents…Currie Rose Resources (CUI, TSX-V), one of our favorites at the moment, has hit a new 52-week high of 28 cents…this is an exciting, pure Gold exploration play with serious potential to uncover another discovery at its Mabale Hills Project in northwest Tanzania where drilling continues at Sisu River…initial drill results are pending – this is one to watch very, very closely…Richfield Ventures (RVC, TSX-V) is taking a breather after a big move yesterday when it jumped 98 cents on new drill results from Blackwater…we’ve been extremely bullish on Blackwater since December last year when we brought RVC to our readers’ attention when it was trading at $1.20…the stock is currently off 6 cents to $4.47…Seafield Resources (SFF, TSX-V) is firming up again after touching a recent low of 17 cents…the weakness in the stock lately has been frustrating given the potential of its Quinchia property package in Columbia…Seafield is up 2.5 cents at 21.5 cents on over 1 million shares…
November 23, 2010
Adventure Gold (AGE, TSX-V) has much more going for it than just its recent strategic land acquisitions on Gold Bullion’s doorstep at Granada, but AGE will definitely benefit from the excitement we expect the LONG Bars Zone to generate in the days, weeks and months ahead. Recent GBB drill results demonstrate the LONG Bars Zone is widening and AGE has found significant Gold mineralization (associated with porphyritic intrusions and/or quartz veins with disseminated sulphides in strongly altered and locally well-deformed sediments) while prospecting west and southwest of the LONG Bars Zone. Adventure Gold believes these areas are “extensions” to the LONG Bars Zone which seems very plausible to us. AGE has picked up 200 hectares in total so far at Granada, not a large area but they’re tied on immediately to the west of the LONG Bars Zone and they have also carved out a small slice of the “Eastern Extension” which would definitely form part of any open-pit mining operation at Granada. Some of Gold Bullion’s Phase 2 Eastern Extension holes were drilled extremely close to what is now Adventure Gold’s Property. We expect AGE will be doing some of its own drilling to test its Granada extension properties early in the New Year.
We first brought Adventure Gold to our readers’ attention in late September when the stock was trading in the low 20′s. Today it closed at 45 cents, and the chart looks absolutely phenomenal as John describes in his analysis below. AGE is far from being technically overbought and as John declares, “Seldom does one see a chart looking so positively bullish with chart patterns and indicators in absolute agreement.”
John: Today, Adventure Gold (AGE, TSX-V) gapped up at the open to 43.5 cents from Monday’s close of 40 cents. It then drifted down to a low of 40.5 cents and rebounded during the day to close at its high of 45 cents for a gain of a nickle (12.5%) on CDNX volume of 279,000 shares.
Looking at the 2-month daily chart we see that today it broke out to the upside from the resistance level at 42.5 cents. This resistance is shown as a green horizontal line because now it is support. There is resistance at 52 cents, the previous all-time high, shown as a blue horizontal line. The EMA(20) provides close bullish support at 40 cents.
The set of Fibonacci levels (blue horizontal lines) shows the next Fibonacci target level is at 66 cents (this is not a BMR price target as we don’t give price targets but a theoretical near-term Fibonacci level as a guide for investors based on technical analysis). The previous Fibonacci level, not shown on the chart, was at 53 cents.
The volume today, although relatively low, was the highest in the last 5 sessions. A 5-cent move to the upside with only 279,000 shares traded is a very bullish sign.
Looking at the indicators: The ADX trend indicator has the +DI (green line) flat at 28 and above the -DI (red line) which is flat at 12. The ADX trend strength indicator is flat at a high strength value of 44. This orientation is very bullish.
The Slow Stochastics has the %K (black line) at 41 and crossed above the %D (red line) at 36. A crossover at this low value is very bullish as it allows the stock to move a considerable distance before becoming overbought – very bullish.
The Chaikin Money Flow (CMF) indicator has been completely green (bullish) - above zero – for the past 2 months. The buying pressure has been quite high over the last 11 sessions during the consolidation period. This indicates accumulation – very bullish.
Outlook: Everything about this chart points to a potential major move to the upside in the near future. Seldom does one see a chart looking so positively bullish with chart patterns and indicators in absolute agreement.
Nothing like a little fire-fight between North and South Korea to give Gold a bit of a kick…as of 8:20 am Pacific, the yellow metal is up $7 an ounce to $1,373 after hitting a low of $1,355 this morning…Silver has regained some of its earlier losses but is still off 60 cents to $27.27…the U.S. Dollar Index has jumped nearly a full point to 79.59…it faces very stiff resistance, however, around 80…the CDNX is softer on some profit-taking and selling pressure in Toronto and New York…..the CDNX is off 10 points at 2004…Gold Bullion Development (GBB, TSX-V) continues to show very strong technical support at 60 cents, a level it bounced off from again this morning…GBB is currently off a penny at 61 cents, the middle of its range today…the GBB chart continues to look solid and the LONG Bars Zone is widening which is an important development…it’s all blue sky for several kilometres going east, so the fact GBB is proving the Zone is even wider adds greater value to the project…at BMR, we correctly predicted a discovery for Gold Bullion last December when it started drilling Granada and the stock was trading at just 7 cents…we see the same strong potential for a discovery with Currie Rose’s Gold properties in northwest Tanzania…they are currently drilling into a highly prospective target at Sisu River, approximately 8 kilometres northeast of the company’s Mwamazengo discovery in 2005…it appears Currie Rose is successfully penetrating the highly silicified and sheared quartz porphyry at Sisu River with 14 holes reaching their intended depths as of a week ago…initial assays are pending and the turnaround time should be fairly quick as CUI is using a lab just a short distance from the property…Sisu River forms part of the company’s Mabale Hills Project which is surrounded by several major mines and deposits in the heart of the prolific Lake Victoria Greenstone Belt…200 kilometres to the southeast of Mabale Hills is Currie Rose’s Sekenke Gold Project which has unquestionable potential for developing into a major discovery as it runs in between and surrounds two former high grade producing Gold mines from the first half of last century, including one of Tanzania’s original Gold producers…CUI hit a new 52-week high of 27.5 cents this morning…as of 8:20 am Pacific, it’s up half a penny at 26 cents after breaking through resistance at 24.5 cents yesterday…one of our favorite companies at BMR over the last 11 months has been Richfield Ventures (RVC, TSX-V) which has exploded to the upside this morning on new drill results from its Blackwater Project in central British Columbia…we know how to pick a winner at BMR and Richfield has jumped nearly 300% since we introduced it to our readers last December…a multi-million ounce deposit is indeed taking shape at Blackwater and we see this company as a definite takeover candidate…BW-91 is one of Richfield’s very best intersections to date with the top of the hole cutting 171 metres of 3.13 g/t Au…the stock is currently up $1.00 to $4.55…with a market cap of $170 million, Richfield still has room to move considerably higher over the coming months assuming it’s on its way to discovering a deposit in the range of 5 million ounces…Blackwater also has silver and copper values…other attractive players we like in the area with potential include Troymet Exploration (TYE, TSX-V) and Greencastle Resources (VGN, TSX-V)…
November 22, 2010
Currie Rose Resources (CUI, TSX-V), one of our favorites, blasted through resistance at 24.5 cents today on CDNX volume of 1.4 million shares (336,000 on ALPHA) to start what appears to be a new up-leg. The stock hit a new 52-week high of 26 cents and closed at 25.5 cents.
We first alerted BMR readers to Currie Rose when it was trading at a dime in mid-September. This is a company with Canaco-type potential as it has been active in Tanzania since 2005 and is aggressively exploring a very attractive package of advanced staged and grass roots exploration projects in the prolific Lake Victoria Greenstone Belt of northwest Tanzania.
Currie Rose is currently drilling the promising Sisu River Gold Property at its Mabale Hills Project. As of a week ago the company had completed 14 holes at Sisu River with drilling intersecting “good source rocks” (it appears they’re successfully penetrating the highly silicified and sheared quartz porphyry beneath the ‘mbuga’ clays) at depths of approximately 100 metres per hole. Artisanal miners made a discovery at Sisu River just over a year ago and Currie Rose’s random sampling program turned up grades as high as 89 grams per tonne. This Phase 1 RC drilling at Sisu River will consist of 3,000 metres or approximately 30 holes. The company is using a nearby local lab, speeding up turnaround times, and initial assay results are pending.
Chances of a discovery at Sisu River, based on the favorable geology of the area, have to be considered good (the exploration business is risky, as our readers know, but we do have an impressive track record at BMR in terms of identifying possible discoveries). Just 8 kilometres to the southwest, Currie Rose made a near-surface discovery in 2005 at Mwamazengo with results including 31 metres grading 5.97 g/t Au and 63 metres of 2.59 g/t Au. Mwamazengo remains a target of high interest for Currie Rose.
Approximately 200 kilometres to the southeast of Mabale Hills is Currie Rose’s highly prospective Sekenke Gold Project – a nearly 300 square kilometre land package that runs in between and surrounds two former high grade producing mines. As the old saying goes, the best place to find a new mine is near an old mine. CUI has already identified a highly prospective structure (12 km x 800 m) within a shear zone on the margins of a large granite intrusion that hosts numerous vertical quartz reefs of the same type that developed at the nearby former mines. Currie Rose is launching a major geophysical program at Sekenke in order to prioritize drill targets for the spring.
Even though Currie Rose has more than doubled since we first brought the company to our readers’ attention more than 2 months ago, we still love the risk-reward ratio here which is why this writer continues to hold a substantial position (270,000 shares). The situation with Currie Rose has the same “feel” as Gold Bullion (similar trading patterns and the Sekenke Project reminds us of the Granada story – extensions to a former mine) when we introduced GBB at less than 10 cents in December of last year – GBB became a 10-bagger and still has tremendous potential. Currie Rose has solid management and we’ve interviewed President and CEO Harold Smith twice already on BMR.
Below, BMR’s technical analyst takes a look at the Currie Rose chart after today’s strong move through resistance at 24.5 cents:
John: Today, Currie Rose Resources (CUI, TSX-V) opened at 22.5 cents, its low, and during the day climbed to a new 52-week high of 26 cents before closing at 25.5 cents for a gain of 3 pennies on CDNX volume of 1.4 million shares.
We see from this 2-month daily chart that CUI broke to the upside from a small horizontal channel on October 21 at 13 cents. It then climbed steadily over the next 13 sessions to reach a 52-week high of 24.5 cents. Over the next 7 sessions it consolidated and formed a bullish downsloping flag. A breakout from the flag occurred with a 2 doji followed by today’s white candle.
The downside risk at the moment appears minimal. There is now strong support at previous resistance around 24 cents. There is also a very strong support band between 19 cents (the 61.8% Fibonacci level) and 20.5 cents. The EMA(20) moving average is at 20.6 cents and pointing up, also providing strong support.
The set of Fibonacci levels (green) shows the next target level is at 32 cents (this is not a BMR price target as we don’t give price targets but a theoretical near-term Fibonacci level as a guide for investors based on technical analysis). The volume today was the highest in the last 9 sessions. If the volume stays high we could see the Fibonacci target reached this week.
Looking at the indicators:
The RSI, at 78%, is pointing up and in the overbought region but has room to move higher – bullish.
The ADX trend indicator has the +DI (green line) at 38 and pointing up. It has plenty of room to move higher. It’s above the -DI (red line) which is way down at 7.
The ADX (black line) trend strength indicator is high and flat at 61, showing the trend strength is high and constant – very bullish.
The Chaikin Money Flow (CMF) is bullish but the buying pressure has been low for the last 3 sessions. It has been sufficient, however, to move the stock to a new high and that is very bullish.
CUI is in an excellent position to reach the Fibonacci target of 32 cents in the near future if the volume remains high.