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The BMR Portfolio (1st of 2 parts)

Gold Bullion Development (GBB, TSX-V)

It was a week of major developments for Gold Bullion with outstanding metallurgical results released for Granada Monday followed by new and highly encouraging assay results Friday…the stock was up 5% for the week at 63 cents with the highest weekly CDNX volume (7.4 million shares) in nearly 2 months…metallurgical recoveries in excess of 93% for grades below a gram are highly significant and strongly suggest Granada will be successful as a very large volume deposit if that’s what the LONG Bars Zone turns out to be…all signs are pointing to that…the assay results released Friday prove that the potential of the Eastern Extension is not only to the east, but also to the north and the south…Hole #108, collared 110 metres northwest of Phase 1 Discovery Hole #17 and 150 metres northeast of the Preliminary Block Model (2.4 to 2.6 million potential ounces, non 43-101 compliant), intersected 142 metres grading 0.70 g/t Au within a wider interval of 280 metres grading 0.38 g/t Au…this hole was collared 30 metres north of Hole #55 which returned a whopping 360 metres of 0.60 g/t Au (including 99 metres grading 1.85 g/t Au)…these are impressive intersections and they demonstrate that GENIVAR is defining a growing structure in the Eastern Extension…grades can be expected to improve once the drill pattern tightens, but even 0.50 is a very mineable grade that Gold Bullion could make a lot of money on…small diameter NQ drilling is being carried out to allow GENIVAR to get a better understanding of structure throughout the LONG Bars Zone…this type of drilling gives geologists a really good look at the alteration in the rock, among other things, although in a deposit of this nature (lots of free Gold and finely disseminated Gold) small diameter core drilling is likely going to understate the Gold content as Gold Bullion’s large bulk sample proved…GBB is waiting for drill results from 11 more holes drilled north, northeast and northwest of #17, many of which had strong visuals…the mineralization encountered in the northern portion of the Eastern Extension suggests to us that the Preliminary Block Model, very much untested to the north, has a lot of potential to expand in this direction…this has major tonnage implications for Granada…meanwhile, Gold Bullion has made a significant discovery of mineralization in the far south of the Eastern Extension as Hole #86 returned 1.00 g/t Au over a near-surface interval of 84.6 metres…this gives the south new potential…Hole #86 was collared nearly 200 metres southeast of the Preliminary Block Model…last week’s news – the metallurgical numbers and confirmation of a new north-south dynamic in the LONG Bars Zone – is game-changing and significantly broadens the picture at Granada…going east, GBB has several kilometres of highly prospective ground including LONG Bars Zone 2 which starts about 1.5 kilometres east of Hole #17…some spectacular numbers could come from that area, based on historical information, but there are clearly exciting new possibilities going north and south within the Preliminary Block Model and the Eastern Extension…Gold Bullion and GENIVAR are dealing with a different type of deposit than what Osisko (OSK, TSX) has at Canadian Malartic 65 kilometres to the east, but at the end of the day Granada could turn out to be even bigger…

Adventure Gold (AGE, TSX-V)

We first mentioned Adventure Gold to our readers in an article September 29 when the stock was trading in the low 20′s and just a couple of days after the company announced it had acquired land at Granada…we officially added it to the BMR Portfolio at 34 cents October 28…AGE closed Friday at 42.5 cents, up half a cent for the week…this stock has a terrific looking chart with very strong support at the rising 20-day SMA of 40 cents…AGE has much going for it, not the least of which is its small but strategic land position at Granada…Gold Bullion has drilled some Eastern Extension holes very close to AGE’s property (within metres in a few cases) which is also right on strike with Hole #86 (approximately 200 metres to the west)…on November 10 AGE reported initial prospecting and mapping results from work carried out over its small land package at Granada, showing numerous Gold-bearing zones (in the western and southwestern lateral extensions of the LONG Bars Zone) associated with porphyritic intrusions and/or quartz veins with disseminated sulphides in strongly altered and locally well-deformed sediments…AGE plans to start drilling by early next year…Adventure Gold has been around only since late 2007 and we are impressed by the company’s strong portfolio of properties (19 in 6 strategic areas in Quebec and Ontario) including its recently announced partnership with Agnico-Eagle (AEM, TSX) at Dubuisson…it also has a partnership with Lake Shore Gold (LSG, TSX) on the Meunier 144 Property where deep drilling is currently testing the down plunge extension of Gold zones located at the Timmins and Thunder Creek deposits…AGE’s foray into Granada provides some potential “sizzle”, especially if Gold Bullion continues to deliver stellar results from the Eastern Extension…Adventure Gold has approximately $2 million in cash and nearly $3.5 million in cash and stock (includes 15,000 shares of Agnico-Eagle)…we’ve spoken with Marco Gagnon, AGE’s President and CEO…he has strong credentials and a clear vision for this company…he has also assembled a powerful geological team…this is a determined and aggressive group…

Currie Rose Resources (CUI, TSX-V)

Currie Rose, which was added to the BMR Portfolio at 16 cents in late October, has completed the first half of its Phase 1, 3,000 metre RC drill program at the Sisu River Gold Property which forms part of its very promising Mabale Hills Project in northwest Tanzania…14 holes totaling nearly 1,500 metres were completed through last Tuesday at Sisu River, and initial assay results are pending…Currie Rose is using a lab in the local area, a short distance from Mabale Hills, and they’ve been able to get assay results very quickly in the past…drilling at Sisu River started nearly a month ago and the company also reported last week that “good source rocks have been intersected beneath the ‘mbuga’ clays‘…we can’t help but think a discovery is in the making here, perhaps similar to what occurred at Mwamazengo just 8 kilometres or so to the southeast in 2005…the drill program at Sisu River is focusing on an area that has returned excellent sampling results and where artisanal miners made a discovery in the fall of last year…the quartz porphyry target at Sisu River is hosted within felsic volcanic rocks, generally considered to be favorable hosts for Gold in greenstone belts around the world…Currie Rose last week also gave more details on its Sekenke Gold Project which is 200 kilometres southeast of Mabale Hills…we are extremely bullish on this major land package as it runs in between and surrounds two former producing high grade mines…the company has already identified a large structure (12 km by 800 metres) 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 ready to initiate significant pre-drilling work (high resolution satellite imagery, geophysics, etc.) at Sekenke in order to prioritize drill targets for the spring…Currie Rose has a very impressive chart with the stock underpinned by rock solid technical support around 20 cents…CUI closed the week at 22.5 cents, down half a penny…it has consolidated nicely recently and appears close to starting a new uptrend that could test the next major level of resistance in the low 30’s…

Greencastle Resources (VGN, TSX-V)

Greencastle was off half a penny for the week at 24 cents with volume declining to 640,000 shares from about 1.5 million the week before…the stock’s overbought condition is unwinding with strong technical support in the low 20’s…in clockwork-like fashion, Greencastle has experienced 3 powerful moves (very sharp spikes) over the last 7 years (late 2003, early 2006 and mid-2008)…2006 was more intense than 2003, and 2008 was stronger than 2006…we’re certain that a very powerful fourth move is now underway, driven by Greencastle’s recent shift in corporate strategy to get much more active in the Gold exploration space…volume has picked up dramatically in VGN since late October, which is what one would expect in the early stages of a major move…Greencastle has working capital of $6 million, regular monthly oil royalty revenue of at least $125,000, and 2 very promising Gold properties in Nevada to go along with its new acquisition near Richfield’s Blackwater Project…VGN has a current market cap of only $11 million is already up 71% since we added it to the BMR Portfolio a month ago…

Richfield Ventures (RVC, TSX-V)

Richfield finished the week on a strong note, climbing 7 cents Thursday and 12 cents Friday to close the week up a nickel at $3.24…the stock has very strong new technical support at the $3 level…there is no question Richfield is developing a potential world class deposit at its Blackwater Project in central British Columbia which is why BMR jumped all over this story last December when the stock was trading at only $1.20…we interviewed company President and CEO Peter Bernier last spring and we’re extremely impressed with how he has managed this project…Bernier’s strategy, we believe, is to drill, drill, drill and fetch the highest takeover price possible for the company after proving up (hopefully) a multi-million ounce Gold deposit which will have copper and silver components as well…in this rip-roaring bull market, a potential takeover price for RVC could be in the hundreds of millions or who-knows-what depending on future drill results and just how high Gold goes…the dynamics with Richfield are exciting…the company has consistently returned long intersections of mineable grade…4 more holes were reported November 2 (all drilled vertically) including BW-87 which returned 115 metres grading 2.59 g/t Au…it looks like it’ll be a cold and snowy winter in British Columbia, but Richfield has a fully winterized camp and should be able to drill with at least 2 rigs without any interruptions throughout the winter…