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Rouyn-Noranda, Quebec

Greetings from Rouyn-Noranda, Quebec, where one can feel fall beginning to set in…the forecast temperature high for Thursday is just +7 Celsius (45 Fahrenheit)…Gold has cooled off as well recently as the consolidation phase we were anticipating has taken hold…this is a healthy development, however, from a technical perspective and should pave the way for higher prices and a breakout beyond the $2,000 level sometime during the fourth quarter…as of 11:00 am Eastern, Gold is up $9 an ounce at $1,823 after dropping as low as $1,794…Silver is 26 cents higher at $40.65…Copper is up slightly at $3.99…Crude Oil is $1.34 higher at $89.53 while the U.S. Dollar Index is off marginally at 77.12…the situation in Europe continues to spook the markets with cracks starting to show in the resilience of the copper market…Chile’s Codelco, the world’s largest copper producer, stated that some of its clients in Europe and the United States have asked to cancel orders, showing that debt troubles and stagnant economies in those areas are starting to spread through the metals industry…continued robust growth in the emerging markets, however, should keep demand healthy…the global economy needs the likes of China and India to keep moving forward, and we suggest our readers check out an excellent piece by Frank Holmes of U.S. Global Investors last weekend (Investor Alert) that debunks the myth that China cannot maintain its strong rate of growth…

Osisko Mining’s (OSK, TSX) massive Canadian Malartic discovery, now the largest commercial mine in the country, has sparked a real Gold rush in this part of the Abitibi which has also helped to double home values in Rouyn-Noranda in just the last few years…mining is part of the culture of this community of 40,000 and our first visit to the area was in early 2010, shortly after Gold Bullion Development’s (GBB, TSX-V) discovery at Granada…GBB went from a market cap of $7 million, when we first brought it to our readers’ attention, to nearly $150 million and even with the drop in the CDNX over the last six months it still commands a total market capitalization of $60 million…President and CEO Frank Basa has been quiet recently but we suspect he’s going to let GENIVAR’s upcoming 43-101 resource estimate for Granada do the talking…Granada remains a massive project with enormous potential…it’s a multiple vein structure system with far more veins discovered since early 2010 than geologists ever thought existed…mineralization also occurs between these many vein structures…some analysts who have never visited the property have questioned the grade distribution, which can be somewhat erratic at times, but the 43-101 report should put a lot of those fears to rest in our view…mineralization is low-grade but widespread (open in all directions) and near-surface at Granada…the deposit has also not been properly tested at depth – it would be very interesting to see what could be 2,000 metres underground…the LONG Bars Zone multi-million ounce potential remains intact and the 43-101, which will be based on tens of thousands of metres of drilling by GBB as well as historical work, should give Gold Bullion a strong foundation of value…

A view of the western edge of the Granada deposit including some of the site infrastructure and a portion of the waste pile which has been the target of considerable drilling over the past year.

We’re optimistic regarding GBB and Granada…if we had to pick another junior in the area that has 10-bagger potential, it has to be Visible Gold Mines (VGD, TSX-V) which has all the necessary ingredients for success – the properties, a very strong geological team that includes Robert Sansfacon whose ability to understand structure was an important factor in the discovery of Canadian Malartic, and the capital and business savvy that are necessary in order to succeed both on the ground and in the market…later today, we’ll be interviewing President and CEO Martin Dallaire which should prove particularly interesting in light of yesterday’s news from VGD…we expect to be able to post the interview by sometime this evening…in just a couple of months, VGD has made very impressive progress at its Wasa Creek Property which borders part of the southern and western boundaries of Richmont Mines‘ (RIC, TSX) Wasamac deposit…as our readers know, we have been extremely bullish regarding Wasamac for nearly a year and now the results are proving us correct – the Wasamac deposit, with several zones that remain open at depth and to the east, clearly has multi-million ounce potential…(RIC’s initial 43-101 resource estimate in February outlined an all-category resource of 1.4 million ounces)…a critical point to keep in mind is that much of the land west of Rouyn-Noranda out to Wasamac, Francoeur and beyond has been hugely under-explored over the years…Richmont’s results (one of the most recent intersections was 31.4 metres of true width grading 7.28 g/t Au) prove that out, but this is also due in part to some errors in historical geological interpretation as the Cobalt sediments over certain sections of the area west of Rouyn-Noranda aren’t quite as extensive or as deep as originally feared…as far as Wasa Creek is concerned, Visible Gold Mines painted a very clear geological picture yesterday of what appears to be unfolding there…we covered the highlights in a separate piece last night…visuals of core are encouraging (10 distinct zones in LBWC-11-12 for example with mineralized shear zones up to 13 metres in length and a quartz carbonate vein structure near the end of the hole)…the mineralized sections contain 2-5% pyrite and some chalcopyrite…mineralization has been observed in core over an area covering at least 2300 metres…VGD states there is a “bend” in the Cadillac Fault that runs underneath the middle of the property and that’s highly significant…a “bend” can create intense pressure, heat and fracturing and that’s what leads to the creation of deposits…the discovery of north-south faults at Wasa Creek, in our view, could mean that VGD geologists are drawing a possible connection between the Wasa Creek structure and the former Alderman copper-Gold-silver-zinc mine 2.5 kilometres immediately to the north…so we have plenty of questions for Martin Dallaire when we interview him later today…Wasa East continues to look very interesting and drill targets continue to be lined up there…meanwhile, VGD has started drilling its promising Joutel Project 150 kilometres north of Rouyn-Noranda…as of 11:00 am Eastern, VGD is up 2.5 pennies at 42.5 cents on continued strong volume…

Adventure Gold (AGE, TSX-V) released initial drill results this morning from Phase 2 of its program at Pascalis-Colombiere, showing mineralization extends at depth below the former producing L.C. Beliveau Mine…hole PC-11-15A cut an impressive 7.1 g/t Au over 4.3 metres…there are also extensions at depth to the west with results showing 4.5 g/t Au over 9.3 metres and 5.2 g/t Au over 3.7 metres…new ENE trending structures have also been intersected up to 550 metres depth – 5.8 metres grading 4.1 g/t Au, 3 metres grading 4.7 g/t Au, 3 metres grading 4.3 g/t Au, and 6.8 metres grading 3.1 g/t Au…the Pascalis package is coming together nicely and includes both underground and open-pit potential…16 holes were completed in Phase 2 and results are pending for 10 additional holes…a 43-101 resource estimate is being worked on…we’ll have more on this potential new producer adjacent to Richmont’s Beaufor Mine in the coming days…AGE is off 2 cents at the moment on light volume at 58 cents…

Richmont President and CEO Martin Rivard has agreed to an interview with BMR on Friday which we are very much looking forward to…Richmont has done a tremendous job developing its Wasamac deposit and Rivard will also be able to give our readers some additional insight into the area in general…Richmont has become an earnings machine with its producing Beaufor and Island Gold Mines plus Francoeur which is going into commercial production by early next year…if you’re a believer in much higher Gold prices, as we are, then accumulating Richmont on any weakness makes perfect sense…RIC has been one of the best-performing stocks on the TSX this year and it should continue to be a leader given its strong growth prospects…it’s a quality company in every respect…

Canaco Resources (CAN, TSX-V) cut a nice hole at its Magambazi deposit in Tanzania, 49 metres grading 3.92 g/t Au as reported yesterday…we can’t help but think this is shaping up to be a fabulous deposit…seven rigs continue to drill there…one of our other favorites in Tanzania, of course, is Currie Rose Resources (CUI, TSX-V) and initial results should be coming soon from drilling at Sisu River and Dhahabu at the company’s Mabale Hills Project…CUI is currently unchanged at 18 cents…drilling is underway at Sekenke and that’s definitely a positive development for Currie Rose…Spanish Mountain Gold (SPA, TSX-V) continues to look good, breaking through the important 85-cent area that John had mentioned was critical in a recent chart…SPA is currently down a penny at 86 cents…we seldom mention non-resource stocks but one company whose technology intrigues is iSign Media Solutions (ISD, TSX-V)…for those who have been following this play, John has an updated chart this morning…ISD is off 2.5 cents at 30 cents as of 11:00 am Eastern…