Currie Rose Resources (CUI, TSX-V)

It was a very positive week, technically, for Currie Rose as the stock corrected 35% from the recent 42.5 cent high to help unwind an overbought condition, and then it snapped back quickly to close the week at 36 cents for a loss of just 1.5 cents…CUI fell as low as 27.5 cents Wednesday, just above its rising 20-day moving average, and that’s when we correctly called an end to the pullback…volume is such an important indicator…this stock has been around for some 40 years and the record all-time trading volume we’ve seen in CUI recently has to be considered an extremely bullish sign for this company…we first mentioned CUI to our readers over 2 months ago when it was sitting at a dime…we added it to the BMR Portfolio at 16 cents in late October and the stock has more than doubled since then…what’s driving this interest in Currie Rose, we believe, is a growing appreciation of the company’s potential in Tanzania where it is focusing on 2 major projects (Mabale Hills and Sekenke), approximately 200 kilometres apart, in the prolific Lake Victoria Greenstone Belt…with the Sisu River Gold Property, which is part of the Mabale Hills Project, investors are looking for a possible repeat of Currie Rose’s early success in 2005 just 8 kilometres to the southwest at Mwamazengo…14 holes totaling nearly 1,500 metres were completed through mid-November at Sisu River….the company reported that “good source rocks have been intersected beneath the ‘mbuga’ clays”…we can’t help but think a discovery could be in the making here, perhaps similar to what occurred at Mwamazengo…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…in mid-November Currie Rose 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 2 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…the former high grade Sekenke mine was one of Tanzania’s original Gold producers and a significant one but it’s quite possible they missed the main deposit which could actually be on the ground that Currie Rose holds…