HAPPY NEW YEAR!
The BMR team wishes each of our readers a very happy New Year! May your 2011 be filled with peace, joy, good health and prosperity!
Regular BMR postings return Tuesday, January 4, when Canadian markets re-open. We will be reporting from northwestern Quebec beginning Wednesday, January 5, through Wednesday, January 12.
Gold is finishing 2010 on a powerful note…as of 8:45 am Pacific the yellow metal is up $15 an ounce at $1,419…Silver is ahead 39 cents at $30.85…the greenback remains under pressure despite better than expected U.S. economic data yesterday…the Dollar Index is off nearly two-thirds of a point at 78.85…after busting through a resistance band between 2150 and 2250 as we predicted would happen by year-end, the CDNX is closing in on 2300…it’s currently up 10 points at 2272…the next major resistance area is 2350…the possibility of a parabolic move in the CDNX in the first quarter of 2011 is very real based on technical patterns and what’s happening in precious metals and commodities in general…Gold Bullion Development (GBB, TSX-V), which was trading around 9 cents at this time last year, is at 84 cents this morning, down 1 penny…it has been a spectacular year for Gold Bullion which has drilled nearly 40,000 metres at the Granada Gold Property…GBB has made significant progress toward outlining a major open-pit deposit at Granada…this will continue to be a very exciting story to follow throughout 2011…there are other companies in the general area around Granada that we are watching closely, not the least of which is Cadillac Mining (CQX, TSX-V) which is one our favorites for 2011…with a current market cap of just $9.5 million, CQX offers considerable upside potential through its Cadillac Trend properties and potential acquisitions in the Great Basin as outlined by the company in a news release yesterday…we’ll have much more on Cadillac Mining during our upcoming visit to Rouyn-Noranda which begins next Wednesday…with an attractive share structure, strong management and a solid current portfolio of properties, CQX has all the ingredients to become a big winner in 2011…as of 8:45 am Pacific, Cadillac is unchanged at 38 cents…in addition to CQX and GBB, there are nine other companies in the current BMR model Portfolio that we are very excited about going into 2011…in alphabetical order, Adventure Gold (AGE, TSX-V), Colombian Mines (CMJ, TSX-V), Currie Rose Resources (CUI, TSX-V), Excel Gold Mining (EGM, TSX-V), GoldQuest Mining (GQC, TSX-V), Greencastle Resources (VGN, TSX-V), Richfield Ventures (RVC, TSX-V), Seafield Resources (SFF, TSX-V) and Sidon International (SD, TSX-V)…all of those companies, with the exception of Greencastle, will be in the midst of drill programs in January (a major drill campaign is starting at CUI’s Scadding Gold Property near Sudbury)…Greencastle, however, has a lot going for it as it just recently (October) made a strategic shift to get much more active in the Gold exploration space…reading between the lines of recent VGN news releases, we anticipate the company may soon add an advanced stage Gold property to the three properties it currently holds (two in Nevada and one in British Columbia near Richfield’s Blackwater Project)…Greencastle is loaded with cash (approximately $6 million) and its oil royalty revenues could increase significantly in 2011 with higher average prices for heavy crude…VGN is currently at 35 cents with a powerful looking overall chart…we wish all of our readers all the best for 2011 with a New Year full of peace, joy, good health and prosperity…HAPPY NEW YEAR – we’re back with our Morning Musings on Tuesday, January 4, and beginning Wednesday we’ll be reporting from one of the world’s greatest Gold producing regions, the Cadillac Trend in the Abitibi Greenstone Belt of northwestern Quebec…
Gold has traded in a range of $1,406 to $1,416 today as it consolidates above the $1,400 level…a move to new all-time highs in early January appears very likely from a technical standpoint…the recent action of the CDNX also confirms that…as of 7:50 am Pacific, Gold is down $6 an ounce at $1,406…Silver hit a new 30-year high this morning of $30.93 but has since pulled back to $30.56, off 4 pennies for the day…the CDNX is up 8 points at 2251…the next area of significant resistance is 2350 as indicated on John’s chart last week…in terms of the companies we follow at BMR, the final two trading days of the year are expected to be quiet with little or no news which is typical for year-end…Gold Bullion Development (GBB, TSX-V) is off 2 pennies at 85 cents…Seafield Resources (SFF, TSX-V), waiting for CDNX approval on its recently completed $15 million financing at 50 cents, is up 2 pennies at 58 cents…January should be a busy month for both companies with new results expected from their respective projects…Currie Rose Resources (CUI, TSX-V) is unchanged at 36 cents…the stock has been consolidating nicely in the 30′s recently…we expect 2011 to be a “breakthrough” year for Currie Rose, as it was for GBB and SFF, as CUI continues to develop its promising Gold assets in the prolific Lake Victoria Greenstone Belt of northwest Tanzania…near Sudbury, Currie Rose’s Scadding Gold Property, optioned to Trueclaim Exploration (TRM, TSX-V), is being drilled in January…Trueclaim has put a lot of work into Scadding, so the possibility of some very good results there has to be considered significant…Frank Basa has stepped down as President of Excel Mining (EGM, TSX-V) due to increasing demands on his time (i.e., Gold Bullion)…Excel however has named two experienced new directors to its board and drilling continues at its Montauban Mining Camp Project in Quebec, a promising Gold-silver and base metals property…the stock has strong technical support in the 10 to 12 cent range and the Montauban Project provides solid fundamental value for patient investors…Greencastle Resources (VGN, TSX-V) is off 1.5 cents to 33 cents where it has strong technical support…the outlook for Greencastle for the year ahead is extremely positive with the company becoming much more active in the Gold exploration space and oil prices in a firm uptrend…Sidon International Resources (SD, TSX-V) is off half a penny at 18 cents…this has been an impressive year of development for Sidon which could really take off in 2011 with its Morogoro East Gold Property and a recent acquisition near Canaco’s (CAN, TSX-V) discovery…
We hope everyone enjoyed a wonderful Christmas!…Canadian markets are back in action this morning and the CDNX has rocketed above the 2200 level…as of 8:15 am Pacific, the CDNX is at 2231 for a gain of 44 points…Gold is up another $5 an ounce to $1,411 after a strong rally yesterday fueled by U.S. Dollar weakness and Comex options expiration action in a thin holiday trading market…Silver is ahead 30 cents to $30.59 while the U.S. Dollar Index is off nearly one-third of a point to 80.20…given the CDNX’s out-performance relative to Gold recently, we can’t help but conclude a major new upleg in the yellow metal has either just started or is right around the corner…technically, Gold’s overbought condition has eased considerably this month, paving the way for a fresh push to the upside that could easily take it to new highs…the fact China has raised its benchmark deposit and lending rates again (25 basis points to 2.75% and 5.81%, respectively, on Christmas Day) shows how strong economic growth continues to be in that country which we view as bullish for the markets we follow…continued impressive growth and strong interest in Gold are themes that should prevail in all the emerging markets during 2011…even Oil, which hit a 26-month high of $91.88 this week, is getting into the act…commodities across the board are looking very strong and that’s a huge positive for the CDNX…Gold Bullion Development (GBB, TSX-V), finishing a spectacular year on a strong note, is up 2 pennies to 87 cents…Cadillac Mining (CQX, TSX-V) is unchanged at 39.5 cents while Adventure Gold (AGE, TSX-V) is also unchanged at 46.5 cents…we’ll be reporting extensively on all three, plus others, during our upcoming trip to Rouyn-Noranda which begins a week from today…January could prove to be a very exciting month for Seafield Resources (SFF, TSX-V)…the company has quickly closed its $15 million financing and is now awaiting CDNX approval for that which should be imminent…results from 9 more holes at Miraflores are pending while the first few holes have been completed at the nearby Dos Quebradas Property which is Seafield’s “blue sky” project at Quinchia…armed with nearly $20 million in the bank and properties that clearly hold multi-million ounce potential in a prolific Gold region of Colombia, Seafield is well positioned to be a strong performer in 2011…we like the chart which tells us Seafield has the potential to be a market favorite in January…SFF is currently unchanged at 59 cents…three other situations we like that aren’t part of the BMR Portfolio are Great Panther Silver (GPR, TSX), Everton Resources (EVR, TSX-V) and Troymet Exploration (TYE, TSX-V)…Great Panther, a producer, is a solid pure silver play…Everton is drilling aggressively in the Dominican Republic and the stock has just pulled back to its supporting 50-day moving average at 31.5 cents…and Troymet announced this morning that it’s starting three drill programs early in the New Year, one of them near Richfield Ventures’ (RVC, TSX-V) Blackwater deposit in central British Columbia…
Just under two thousand years ago Luke recorded the birth of Jesus Christ:
“In those days Caesar Augustus issued a decree that a census should be taken of the entire Roman world (this was the first census that took place while Quirinius was governor of Syria). And everyone went to their own town to register. So Joseph also went up from the town of Nazareth in Galilee to Judea, to Bethlehem the town of David, because he belonged to the house and line of David. He went there to register with Mary, who was pledged to be married to him and was expecting a child. While they were there, the time came for the baby to be born, and she gave birth to her firstborn, a son. She wrapped him in cloths and placed him in a manger, because there was no guest room available for them. And there were shepherds living out in the fields nearby, keeping watch over their flocks at night. An angel of the Lord appeared to them, and the glory of the Lord shone around them, and they were terrified. But the angel said to them, “Do not be afraid. I bring you good news that will cause great joy for all the people. Today in the town of David a Savior has been born to you; he is the Messiah, the Lord. This will be a sign to you: You will find a baby wrapped in cloths and lying in a manger.” (Luke 2: 1-12, New International Version)
A Savior was born and He is Christ the Lord. He came for you and for me. All you need to do is accept Him and He will set you free. Christmas is a time when we celebrate His birth but it is also a day when we celebrate all that He accomplished by willingly going to the cross in His death. He came to save the world and He wants all His children to come to Him and to have relationship with Him.
During this Christmas season it is our hope and prayer at BMR that all of our readers will have time to pause and reflect on the real reason for the season. From our homes to your homes the team at BMR wishes you all a very Merry Christmas. May the Christmas season give you rest, give you peace, give you joy, and give you comfort. May the Lord bless you and keep you. May His face shine upon you this Christmas season.
While markets are open for part of the day tomorrow (Christmas Eve), the regular BMR Morning Musings feature will return Wednesday, December 29. There will be no “Morning Musings” tomorrow (Friday). Instead there will be a Christmas Message from Terry.
In order for our team to enjoy a well deserved break and Christmas with their families, there will be no postings at BMR December 25, 26, 27 or 28. “Morning Musings” will run December 29, 30 and 31. There will be no charts and limited additional postings during this period.
There will also be no postings January 1, 2 or 3. Regular BMR postings resume Tuesday, January 4, the first trading day of 2011. On January 5, BMR begins one week of special reports from Rouyn-Noranda, Quebec, where we’ll be covering Gold Bullion Development (GBB, TSX-V), Cadillac Mining (CQX, TSX-V), Adventure Gold (AGE, TSX-V) and others.
The growth in popularity of BMR over the past year has truly been amazing. We thank you, our valued readers, for your regular feedback and your encouraging words. We trust this site is helpful to you and we look forward to enhancing our coverage and service to you in 2011. Thank you for your loyalty, patience and support as we continue to grow and improve this site.
We would like to take this opportunity to wish all of our readers and their families a very special and Merry Christmas. Our hope and prayer is that the true meaning of Christmas will resonate in as many hearts as possible throughout the world over the coming days.
It has been a remarkable six months for the CDNX which, after today’s close of 2175, is up 62% since the early July low that we correctly called at 1343. Fresh discoveries, new all-time highs in Gold and firmer commodity prices across the board are helping fuel this bull market that the “masses” haven’t yet discovered. When they do, look out. We’ve already presented a strong case for a potential new all-time high in the CDNX (3400+) within the next 12 months. January and February could be extremely robust given the chart patterns we’re seeing, so fasten your seat belts – it appears we’re in for a wild ride.
The CDNX is an astonishingly accurate leading indicator, even for the economy as a whole. With regard to precious metals, the current strength of the CDNX suggests the softness in Gold at the moment is merely temporary – both Gold and silver are likely to explode to the upside early in the New Year based on a close examination of the CDNX chart.
The CDNX is currently in the process of working through a relatively weak resistance band that John identified a while back between 2150 and 2250. Once 2250 has been breached, which could very easily happen as early as next week, the next significant resistance level is 2350. Once that is overcome, this market is likely to accelerate rapidly.
Below is a 10-year monthly CDNX chart from John that also includes a comparison with Gold. CDNX buying pressure, as revealed by the Chaikin Money Flow (CMF) indicator, is steadily increasing – very bullish – and this market is far from being overbought based on historical RSI readings. The CDNX has been running hard for the past six months and it’s not about to stop anytime soon.
Gold is a little soft today, trading between $1,373 and $1,390…as of 7:45 am Pacific, the yellow metal is down $9 an ounce at $1,376…Silver is off 8 cents at $29.16 while the U.S. Dollar Index is up slightly at 80.72…the CDNX is down 2 points at 2165…BMR has revised its schedule for an upcoming visit to Rouyn-Noranda and the Cadillac Trend in order to allow for more time in the area…we have confirmed two separate visits, the first one beginning January 5th and ending on the 12th with a second follow-up visit during the last half of January…there is much happening on the exploration front in the general area and we’ve already been in contact with several companies regarding situations that we’ll be focusing on…of course we’ll be visiting Gold Bullion Development’s (GBB, TSX-V) Granada Gold Property and we’ll also be paying considerable attention to what’s happening immediately east and west of Granada…Richmont Mines‘ (RIC, TSX) Wasamac Property and the adjoining claims of Cadillac Mining (CQX, TSX-V) will be of intense interest given developments there in recent months…Cadillac also has 7,000+ additional hectares west of Rouyn-Noranda and has entered into a partnership with Visible Gold (VGD, TSX-V) on those properties which VGD is preparing to aggressively explore…Gold Bullion is unchanged at 85 cents on light volume so far this morning…President and CEO Frank Basa has provided an encouraging year-end message on the GBB web site…one can’t help but feel very excited about Gold Bullion’s prospects for 2011…Cadillac Mining is up half a penny at 40 cents after an impressive intra-day reversal yesterday…the stock briefly dropped as low as 33 cents where there is very strong technical support and quickly reversed to close at the high of the day, 39.5 cents…Seafield Resources (SFF, TSX-V) has closed its $15 million financing at 50 cents…this only two weeks to complete which is a very positive sign…SFF has traded between 55 and 58 cents this morning…it’s currently ahead 1 penny at 56 cents…with the financing out of the way, attention now re-focuses on more results from the company’s promising Quinchia Gold Project in Colombia…Currie Rose Resources (CUI, TSX-V) is up 2.5 cents at 33.5 cents…we love the fundamentals with this company which holds a large and highly prospective land package in northwest Tanzania with advanced stage and grassroots projects…CUI has made it clear it plans to be very aggressive in its exploration efforts there in 2011…investors should also keep in mind that a major drill program is almost set to begin at Currie Rose’s Scadding Gold Property near Sudbury which is under option to Trueclaim Exploration (TRM, TSX-V)…we’re impressed with TRM’s dedication and attention to detail regarding exploration at Scadding where new structures are being discovered around the former mine…GoldQuest Mining (GQC, TSX-V) has started a drill program at its La Escandalosa Property (formerly Las Tres Palmas) in the Dominican Republic…this could bed a company-making project for GoldQuest which also has many other targets in the DR along with a very interesting zinc-lead-silver deposit in Spain…GQC is currently unchanged at 39 cents…we’ll be posting an updated chart on the CDNX later today in addition to our Christmas and New Year’s schedule for postings at BMR…
Welcome to our site, or at least the initial version of it! BMR has been online for over a year now and strictly through word-of-mouth we have built a large and loyal following. It helps when your portfolio is up over 200%!
We’re continuing with our plans to ultimately build a very unique investment and money-management resource site that goes considerably beyond what we have now. An important component of this site will always be 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. The Bible teaches so much about money and how to handle it and invest it - there are literally thousands of verses on how we should handle the money and possesions that God entrusts us with. By examining the life of Jesus and reading the Word of God, we can all become fully equipped to be successful investors and handle money wisely in order to make it work for us. If it’s the other way around - if you’re a slave to money by being in debt for instance, or if you don’t respect the value of money and spend it foolishly - you’re in trouble and you’ll never be blessed financially. We have a God who thinks big – He created the universe – and He wants us to think big in every area of our lives. When we handle money from a Biblical perpective (His money that we have been given stewardship of) He will bless our financial decisions and an increase of tenfold or a hundredfold is always possible. This all begins, of course, with a personal relationship with Jesus Christ by accepting Him as your Lord and Savior and putting Him at the throne of your life. It is the most important decision you’ll ever make.
BullMarketRun.com is completely independent from any companies it covers. BMR accepts no compensation of any kind from the companies we cover in return for that coverage. 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 adviser, 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.
GoldQuest Mining (GQC-TSX-V) has done a terrific job over the last year or so getting all of its “ducks in a row” which is likely going to start paying huge dividends as 2011 gets underway. The company has just commenced a drill program at its La Escandalosa Project (formerly Las Tres Palmas) in the Dominican Republic. Drilling will accelerate in early January. La Escandalosa is an exceptional target as we have outlined many times here at BMR. A recently completed 43-101 shows an inferred resource in one area of La Escandalosa (Escandalosa Sur) of 406,000 ounces – this was a very early 43-101 (based on only 25 drill holes and 3,300 metres of drilling). The potential for a much larger resource clearly exists – the right geology is there. GoldQuest has been exploring in the DR for a decade and they have a truly outstanding pipeline of projects in this mineralization-rich country. In Spain, GoldQuest holds the Toral zinc-lead-silver project which has an historical (non-compliant) resource of 5.4 million tonnes grading 9% zinc, 6% lead and 45 g/t Ag. A 43-101 on Toral is expected in the near future. GoldQuest ran to $1.80 per share in mid-2007 on less than what we believe it has now. The stock closed at 39 cents today and John provides a brief technical update below.