BullMarketRun

Gold has traded in a range of $1,344 to $1,354 so far today…as of 8:35 am Pacific, the yellow metal is up $2 an ounce at $1,351…Silver is 24 cents higher at $29.38 while the U.S. Dollar Index is up slightly at 78.14…the next big test for Gold will be to get through its 100-day moving average (SMA) at $1,362…the CDNX is quickly approaching the 2400 level…the Index is up another 12 points this morning to 2382…GoldQuest Mining (GQC, TSX-V) hit a new 52-week high of 48.5 cents this morning…it’s currently up 2 pennies at 47 cents…our interview with GQC Chairman Bill Fisher has given us even more confidence that this company is on track for major exploration success in the Dominican Republic where Fisher’s goal is to outline at least a million ounces at La Escandalosa and put that near-surface deposit into production…a 43-101, based on just 25 holes, gave GoldQuest an inferred resource of 400,000 ounces prior to the start of the current 42-hole program…the 400,000 ounces is over a central zone section 350 metres long while mineralization has been traced over a distance of approximately two kilometres north to south…given that this is a flat-lying near-surface ore body that would have very low stripping ratios, the potential economics “are really quite compelling”, Fisher told us…GoldQuest has much more going for it in the DR as well as a 43-101 due for release at any time now on the Toral zinc-lead-silver deposit in Spain (5.4 million historical non-compliant tonnes grading 9% zinc, 6% lead and 45 g/t Ag)…we got the distinct impression from Fisher that investors can expect solid news flow from GoldQuest over the coming weeks and months…GoldQuest has a truly exciting package and a clear game plan…a decade of hard work in the DR is starting to pay off…Cadillac Mining (CQX, TSX-V) has come to life…CQX jumped as high as 33 cents this morning and is currently at 29 cents, up 4 pennies…the recent retracement seems to have run its course…with its strong presence in strategic areas along the Cadillac Trend, primarily west of Rouyn-Noranda, and its recent foray into the Great Basin where it has tied up an entire former mining camp near the Utah/Nevada border, the outlook for CQX is very positive especially considering its attractive share structure and current market cap of only $7.25 million…Gold Bullion Development (GBB, TSX-V) is off a penny on low volume at 75 cents…we have to assume a major exploration update fromGold Bullion is near at hand…news should also be on its way soon from Seafield Resources (SFF, TSX-V) which is off 1.5 cents this morning at 45 cents…technically, Seafield is still in very good shape and the recent weakness can simply be attributed to a lack of news…results from nine more drill holes are pending from Miraflores and initial results from Dos Quebradas are expected as well…Seafield’s Quinchia land package holds serious blue sky potential – geologically, it has all the right ingredients for a multi-million ounce system – so now is not the time to be getting cold feet simply because some impatient investors have knocked the price down a few pennies…after recovering to a high of 22.5 cents last week,Currie Rose Resources has pulled back to test support…this is normal technical action…it’s pretty clear in our view that CUI put in an important bottom recently at 15 cents, where it’s supported by a rising 200-day moving average…CUI is currently down 2 pennies at 17 cents…Sidon International (SD, TSX-V) is holding steady at 13 cents where it has strong technical support…President and CEO Kamal Alawas has agreed to an interview with us in the near future…it’s possible he could be waiting for news…we like how Adventure Gold’s(AGE, TSX-V) chart is looking (see John’s update yesterday)…AGE is currently off 3 pennies at 45 cents…we’re looking forward to drilling news from AGE’s Pascalis-Colombiere GoldProperty in the eastern portion of the Val d’Or mining camp…a drill program started in mid-December…excellent potential for extensions to the past producing L.C. Beliveau Mine…

GoldQuest Mining (GQC, TSX-V)

GoldQuest is off to a roaring start this month after performing very well in January when many Gold stocks were under some pressure…GoldQuest finally blasted through resistance in the low 40′s and climbed as high as 48 cents Friday before closing at 45 cents for a weekly gain of 7 cents or 18%…very bullish technicals, which John outlined in a chart earlier today, are in sync with this company’s strong fundamentals…we stated in December that GoldQuest is one of our top picks for 2011 and we’re even more certain of that after our conversation Thursday with newly appointed GQC Chairman Bill Fisher…Fisher, a professional geologist with over 30 years’ experience as a geologist and mining company executive, brings a very successful track record to this company (he became a director last summer and was named Chairman January 20) including eight years as CEO of GlobeStar Miningwhich got taken over by Perilya Ltd. late last year…during his tenure, GlobeStar developed, financed and built the Dominican Republic’s first copper mine at Cerro de Maimon…Fisher is very excited about GoldQuest’s La Escandalosa Property where drilling continues in an effort to expand the 43-101 inferred resource of 400,000 ounces…this is a flat-lying ore body and “the economics could be really quite compelling,” Fisher told us…it’s important to stress the 43-101 was completed on La Escandalosa at a very early stage and the possibility of a discovery of one million ounces or even more is possible as this is such an attractive geological target…the deposit is open at depth as well as to both the south and the north toward another discovery of Gold mineralization by the company at Hondo Valle, approximately 1.2 kilometres away…Gold at La Escandalosa occurs as a flat-lying stratiform zone at shallow depth with mineralization interpreted to be part of a larger intermediate sulphidation replacement-style system which has now been defined intermittently over a strike length of 2,100 metres…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…the 400,000 inferred ounces outlined so far are over a 25-hole section 350 metres long…successfully linking this central mineralized zone to the north and the south is what could take this deposit to the million ounce plus category which would allow for production of 100,000 ounces per year…no major infrastructure or political hurdles…the regulatory framework in the DR is conducive to mining…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…GQC will be drilling Las Animas immediately after Escandalosa…that will be followed by a drill program at Jengibre, a promising target about 30 kilometres southeast of Escandalosa…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 completed and is due very soon…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… GoldQuest, which has nearly $4 million in the bank, is up 131% since we introduced it to our readers near the end of September…this is a stock that got as high as $1.80 ($100 million market cap) in mid-2007 on less than what it has now…February potentially could be very busy in terms of news flow for GoldQuest…the long-awaited announcement of a new President and CEO, a 43-101 compliant resource estimate for Toral, and initial drill results from Escandalosa could all come this month…GQC has all the ingredients to become a huge winner this year as the bull markets in Gold and the CDNX intensify…

Greencastle Resources (VGN, TSX-V)

Greencastle was up 2 pennies last week to 25.5 cents after a weak January when it dropped 31% from 36 cents to 24.5 cents…the stock hit a low of 22 cents last week where it appears to have bottomed out…a declining 50-day moving average (SMA) at 31.5 cents can be expected to provide resistance over the short term…a complete lack of news over the past two months is really what has caused Greencastle to drift lower…however, with approximately $6 million in working capital, three Gold properties and monthly cash flow from an oil royalty, it doesn’t take a rocket scientist to figure out that VGN is a bargain at current levels…volume has been low on the move down which confirms there’s nothing to be concerned about here…Greencastle will have its day in the sun again soon enough…the long-term chart remains very bullish with rising 100, 200 and 300-day moving averages (SMA) that are in no danger of reversing…it’s also interesting to note that President and CEO Tony Roodenburg, a large shareholder in VGN, has refrained from selling any of his holdings in recent months despite the fact the stock price more than tripled in value on high volume…this is different from past runs in the stock and adds further credence to our view that we haven’t seen the highs in this cycle yet from Greencastle – it’s poised for what we believe could be a massive breakout sometime during the first half of this year…Pinetree Capital has also accumulated more shares in Greencastle, so there’s every reason to be very optimistic regarding this company’s prospects in the days, weeks and months to come…Greencastle is up 82% since we added it back in to the BMR model portfolio three months ago…

Adventure Gold (AGE, TSX-V)

Adventure Gold continues to show some strength and climbed another 2 pennies last week to close at 48 cents….volume has picked up over the last 13 sessions after a low of 36 cents January 19, and the technicals are looking quite promising as John outlined in an updated AGE chart today…AGE released significant news January 20…the company got some free drilling on its Granada Eastern Extension Property as it reported that one of Gold Bullion’s holes (#85) was drilled entirely on Adventure Gold land (just inside the boundary) while three other holes (#78, #83 and #98) were collared north of AGE’s property but finished within it…this didn’t surprise us and it’s not an unusual event in the industry…it worked out well for both parties in this case, however – all the core from those holes has been given to AGE who will share results with GBB…this represents at least $100,000 of drilling and all AGE has to do is pick up the assaying costs…given GBB’s “hit ratio” on holes, it’s reasonable to assume that at least one of the holes (or partial holes) on AGE’s property could be of the “stellar” variety…with more results coming soon from Gold Bullion, we expect Adventure Gold could continue to firm up…they do hold small but strategic parcels of land around Granada (immediately to the south and the west in addition to the east) that could become part of a large open-pit…their claims hold significant potential value and they have drill assay results coming in without even doing their own drilling which they plan to start upon completion of their program at Pascalis-Colombiere…that property in the eastern part of the Val d’Or mining camp is heavily underrated in our view…a 2,500 metre drill program started at Pascalis-Colombiere last month and is testing the former L.C. Beliveau Mine at depth (below 300 metres) as well as near-surface parallel Gold structures to the west…Pascalis-Colombiere is just 1.5 kilometres east of Richmont’s (RIC, TSX) operating BeauforGold Mine which has produced over one million ounces in its lifetime…it’s safe to assume Richmont will be watching developments at Pascalis-Colombiere with interest…Adventure Gold’s property has significant upside exploration potential…the geological setting is favorable for the identification of new high-grade Gold bearing veins and structures or bulk-style ore shoots…there are many untested areas and excellent potential at depth…L.C. Beliveau was a very profitable former producer…if AGE can prove up something significant through extensions to this deposit, we see a potential deal with Richmont which would be the natural choice to bring the mine back into production…we first mentioned Adventure Gold to our readers in an article September 29, just a couple of days following the company’s announcement that it had acquired land at Granada, when the stock was trading in the low 20′s…we officially added AGE to the BMR model portfolio at 34 cents October 28, so the gain since then is 35%…Adventure Gold has been around only since late 2007 and we are impressed by the company’s solid portfolio of properties (19 in six strategic areas in Quebec and Ontario)…also of immediate interest is AGE’s 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…the current initial deep drill hole onto the Meunier JV property is continuing…when completed it’s estimated the hole will provide a deep cut on the projected target area at about a vertical depth of 2,600 metres…this will enable shallower wedge cuts to be considered if significant mineralization is found to be present in this area…the initial deep hole was collared onLSG’s Timmins mine property last August and has now passed the 2,000 metre mark in depth…if this deep hole succeeds, AGE could absolutely explode…

Sidon International (SD, TSX-V)

Sidon traded in a narrow range last week between 12.5 cents and 14 cents, closing down a penny for the week at 13 cents…the stock is currently sandwiched between its rising 100-day moving average (SMA) at 17.5 cents and its rising 200-day SMA at 11.5 cents…this stock has shown clear trading patterns since last spring and has been quite volatile…however, the primary trend remains up and Sidon has consistently found support at or just above the 200-day SMA…BMR will be interviewing President and CEO Kamal Alawas in the near future but a date for that has not yet been confirmed…results are pending from drilling at Sidon’s Morogoro East Gold Property…the company reported zones of disseminated sulphides of pyrite and pyrrhotite as well as some chalcopyrite and arsenopyrite throughout all six holes drilled over intervals of 30 to 70 metres…we caution that visuals are not always reliable but there’s reason to be optimistic that Sidon could be on to something…the company is also trying to develop a placer operation at Morogoro and has also acquired ground near Canaco’s discovery…this company has come a long way since last March when we first introduced it to BMR readers at a nickel, and its new web site is just one more indication of how impressively Sidon has developed and matured…we see exciting possibilities for 2011…the company raised over $1 million through the exercise of options and warrants in November and December…

Seafield Resources (SFF, TSX-V)

Seafield appeared to reverse course last Tuesday when it fell as low as 42.5 cents and closed at its high of 47 cents on over two million shares…Seafield closed Friday at 46.5 cents, a loss of 1.5 cents for the week…we still view the overall trend since early December as very bullish and we’re expecting a significant turnaround this month, assuming more drill results come in… Seafield’s current market cap of approximately $68 million is very attractive as this company continues to work on building a substantial Gold resource at its Quinchia District properties in Colombia…on December 3, SFF announced a spectacular drill result from its Miraflores Property in Colombia and the stock rocketed to 77 cents…results are pending on nine more holes at Miraflores…given historical results, at least some of these holes should be very good…drilling now is taking place at Dos Quebradas, a property we believe gives Seafield its real “blue sky” potential at Quinchia… SFF reported December 8 that the first three holes had been completed at Dos Quebradas which is rich in porphyry targets over a wide area…DQ is just a few kilometres northwest of Miraflores…visual reports indicate that these three holes have similar styles of mineralization to an historical hole drilled by AngloGold that returned an interval of 39.5 metres grading 1.67 g/t Au…the potential of Dos Quebradas is evident from limited historical drilling and was confirmed bySeafield last year through soil geochemical surveys and magnetic surveys which are crucial to discovering hidden porphyries in areas of very little outcrop…Seafield also released results recently from trenching in one location from the southern end of the gold-in-soil anomaly that defines the northern extension of the Dos Quebradas porphyry…1.75 g/t Au was returned over 94 metres…Seafield has an excellent opportunity to develop a multi-million ounce Gold resource at its three major properties at Quinchia (Chuscal is the third property)…Seafield has in excess of $15 million in the bank to fund an aggressive program in Colombia…

Gold has given up some of its gains from Friday but that still doesn’t change our view that an important bottom was put in last week just above $1,300…as of 8:15 am Pacific, the yellow metal is down $6 an ounce at $1,332…Silver has been volatile, dropping just below $27.60 this morning before snapping back…it’s currently up 14 cents at $28.15…the greenback continues to show major weakness…the Dollar Index is off two-thirds of a point at 77.68…the unrest in Egypt introduces a new and unpredictable dynamic into the markets…this has to be considered bullish for Gold even though we’re seeing a pullback today from Friday’s nearly $40 an ounce intra-day jump…the situation in Egypt also brings into focus a major economic story that will likely continue to grow throughout the year – global food inflation…U.S. consumer spending rose more than expected in December to post the sixth straight month of gains (0.7% vs. 0.3% in November)…consumer spending grew at a brisk 4.4% pace in the fourth quarter of 2010, the fastest in more than four years…there are major threats to this consumer-led American economic recovery, however, namely the debt problem across all levels of government in the United States… the CDNX is off 1 point at 2267 after Friday’s 34-point advance…all things considered, this has been a very positive month for the CDNX which has held up extremely well in the face of weakness in Gold…the CDNX took a healthy breather in January after a 10.4% upside move in December…we expect a stronger February for the CDNX especially if we get the anticipated strength in precious metals…Richfield Ventures (RVC, TSX-V), which got a buy recommendation Friday from GMP Securities, is up another 31 cents at $5.01, just 9 cents shy of its all-time high…Richfield’s Blackwater Project in central British Columbia is advancing consistently and impressively, clearly demonstrating multi-million ounce potential…this company is a potential takeover candidate down the road…GoldQuest Mining (GQC, TSX-V) is in another “sweet spot” at the moment from a technical standpoint…the stock’s 20-day moving average (SMA) reversed to the upside last week, the third time this has occurred since early September…on the previous two occasions, respectively, the stock then proceeded to climb a whopping 170% and 70%, respectively…we know the fundamentals with GoldQuest are strong…spotting situations like this is how you make good money in the junior resource market…GoldQuest is currently down a penny at 37 cents…Seafield Resources (SFF, TSX-V) is off half a penny at 47.5 cents…we suggest investors watch this one closely as the weakness in Seafield recently is related only to a lack of news…assays on nine more holes are pending from the Miraflores deposit and some holes have already been drilled at Dos Quebradas…both are high quality targets and there’s every reason to believe results will be solid…technically, Seafield is in oversold territory and the downside potential from here appears very limited especially with former resistance around 40 cents becoming new support…Gold Bullion Development (GBB, TSX-V) is unchanged at 74 cents…exploration news is also pending with GBB but we’re very confident Granada will continue to deliver…Gold Bullion bounced back sharply Friday after touching its 100-day SMA at 67 cents…other stocks that are currently trading around favorable technical support areas include Sidon International (SD, TSX-V), Currie Rose Resources (CUI, TSX-V), Cadillac Mining (CQX, TSX-V), and Greencastle Resources (VGN, TSX-V)…they’ve all been a little weak recently but that’s perfectly okay…jumping in at favorable support levels is how money is made…another situation we like that has traded down to strong support is Visible Gold (VGD, TSX-V), an aggressive new up-and-comer with an attractive portfolio of properties along the Cadillac Trend…we suggest investors do their due diligence on this one…VGD is in a strong cash position and has started its 40,000 metre 2011 drill campaign…the stock is currently up 1.5 cents at 36.5 cents…

GoldQuest Mining (GQC, TSX-V)

GoldQuest looks as healthy as ever technically and closed the week up a penny at 38 cents…the stock has been strongly supported by its rising 50-day moving average (SMA), currently at 35.5 cents, since its big run began from a dime in early September…in a significant development this past week, GQC’s 20-day SMA reversed to the upside…this also occurred in early September and again in mid-November…on both occasions this marked the start of a powerful uptrend that lasted several weeks…GoldQuest traded as high as 42 cents last Tuesday where there is clearly some resistance…however, given the strong underlying fundamentals of this company and the bullish overall technical trend of the stock, we believe a breakout through that low 40′s resistance will likely happen sooner rather than later…last Monday was the new accelerated deadline for the exercise of warrants from last April’s financing…this likely added close to $2 million to the company’s treasury… GoldQuest recently elevated director Bill Fisher to executive chairman…he has an impressive 30-year track record of accomplishments in the resource sector…most recently, he was former chairman of Aurelian Resources Inc. (taken over by Kinross) and from 2000 to 2008 he was the chief executive officer of GlobeStar Mining Corp. which, during his tenure, developed, financed and built the Dominican Republic’s first copper mine at Cerro de Maimon (it was also taken over)…with impressive precious and base metal exposure, along with major new discovery potential, we’re very excited about GoldQuest’s prospects for this year which is why it’s one of our favorites for 2011…drilling is in progress at the company’s promising La Esandalosa Project in the Dominican Republic and results could build significantly on the recently released 43-101 inferred resource for that project…all of GoldQuest’s properties in the Dominican Republic and its zinc-lead-silver deposit in Spain have us very bullish on GQC going forward…the company, whose largest shareholder is Gold Fields Ltd., is well established in the DR and its property package there is a geologist’s (and an investor’s) dream…they have spent nearly a decade identifying many highly prospective precious and base metal targets, one of them being La Escandalosa (formerly Las Tres Palmas) where an inferred resource of 400,000 ounces of Gold has already been outlined (announced Nov. 16) based on just 25 drill holes at Escandalosa Sur from 2006 through 2010…it’s important to stress the 43-101 was completed on La Escandalosa at a very early stage and the possibility of a discovery well in excess of a million ounces is possible as this is such an attractive geological target…the deposit is open at depth as well as to both the south and the north toward another discovery of Gold mineralization by the company at Hondo Valle, approximately 1.2 kilometres away…Gold at La Escandalosa occurs as a flat-lying stratiform zone at shallow depth with mineralization interpreted to be part of a larger intermediate sulphidation replacement-style system which has now been defined intermittently over a strike length of 2,100 metres…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…GQC has more drilling to do there as well…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… GoldQuest is up 95% since we added it to our readers near the end of September…

Greencastle Resources (VGN, TSX-V)

Greencastle has been a source of frustration recently with no news since the end of November…the stock is down 35% for the month of January after closing Friday at 23.5 cents…it has declined seven of the past 11 trading sessions while on the other four days it was unchanged…the good news is that Greencastle has become oversold technically and its market cap has dropped to only $10.5 million…with approximately $6 million in working capital, three Gold properties and monthly cash flow from an oil royalty, it doesn’t take a rocket scientist to figure out that VGN is a steal at current levels…volume has been low on the move down which confirms there’s nothing to be concerned about here…Greencastle will have its day in the sun again soon enough…the long-term chart remains very bullish with rising 100, 200 and 300-day moving averages (SMA) that are in no danger of reversing…it’s also interesting to note that President and CEO Tony Roodenburg, a large shareholder in VGN, has refrained from selling any of his holdings in recent months despite the fact the stock price more than tripled in value on high volume…this is different from past runs in the stock and adds further credence to our view that we haven’t seen the highs in this cycle yet from Greencastle – it’s poised for what we believe could be a massive breakout sometime during the first half of this year…Pinetree Capital has also accumulated more shares inGreencastle, so there’s every reason to be very optimistic regarding this company’s prospects in the days, weeks and months to come…Greencastle is up 68% since we added it back in to the BMR model portfolio three months ago…

Adventure Gold (AGE, TSX-V)

Adventure Gold woke up at the end of the week, climbing two pennies Thursday and another four cents Friday to close at 46 cents, a four-cent gain for the week and the highest closing price in 13 sessions…the 50-day moving average (SMA), which has flattened out at 47 cents, represents resistance…the stock has definitely gained some near-term momentum but will have to clear this hurdle on significant volume to confirm that a bigger move could be in the works here as February unfolds…AGE released significant news January 20…the company got some free drilling on its Granada Eastern Extension Property as it reported that one of Gold Bullion’s holes (#85) was drilled entirely on Adventure Gold land (just inside the boundary) while three other holes (#78, #83 and #98) were collared north of AGE’s property but finished within it…this didn’t surprise us and it’s not an unusual event in the industry…it worked out well for both parties in this case, however – all the core from those holes has been given to AGE who will share results with GBB…this represents at least $100,000 of drilling and all AGE has to do is pick up the assaying costs…given GBB’s “hit ratio” on holes, it’s reasonable to assume that at least one of the holes (or partial holes) on AGE’s property could be of the “stellar” variety…with more results coming from Gold Bullion, we expect Adventure Gold could continue to firm up…they do hold small but strategic parcels of land around Granada (immediately to the south and the west in addition to the east) that could become part of a large open-pit…their claims hold significant potential value and they have drill assay results coming in without even doing their own drilling which they plan to start upon completion of their program at Pascalis-Colombiere…that property in the eastern part of the Val d’Or mining camp is heavily underrated in our view…a 2,500 metre drill program started at Pascalis-Colombiere last month and is testing the former L.C. Beliveau Mine at depth (below 300 metres) as well as near-surface parallel Gold structures to the west…Pascalis-Colombiere is just 1.5 kilometres east of Richmont’s (RIC, TSX) operating Beaufor Gold Mine which has produced over one million ounces in its lifetime…it’s safe to assume Richmont will be watching developments at Pascalis-Colombiere with interest…Adventure Gold’s property has significant upside exploration potential…the geological setting is favorable for the identification of new high-grade Gold bearing veins and structures or bulk-style ore shoots…there are many untested areas and excellent potential at depth…L.C. Beliveau was a very profitable former producer…if AGE can prove up something significant through extensions to this deposit, we see a potential deal with Richmont which would be the natural choice to bring the mine back into production…we first mentioned Adventure Gold to our readers in an article September 29, just a couple of days following the company’s announcement that it had acquired land at Granada, when the stock was trading in the low 20′s…we officially added AGE to the BMR model portfolio at 34 cents October 28, so the gain since then is 35%…Adventure Gold has been around only since late 2007 and we are impressed by the company’s solid portfolio of properties (19 in six strategic areas in Quebec and Ontario)…also of immediate interest is AGE’s partnership with Lake Shore Gold (LSG, TSX) on the Meunier 144 Property where deep drilling is currently testing the down plunge extension of Goldzones located at the Timmins and Thunder Creek deposits…the current initial deep drill hole onto the Meunier JV property is continuing…when completed it’s estimated the hole will provide a deep cut on the projected target area at about a vertical depth of 2,600 metres…this will enable shallower wedge cuts to be considered if significant mineralization is found to be present in this area…the initial deep hole was collared on LSG’s Timmins mine property last August and has now likely passed the 2,000 metre mark in depth…if this deep hole succeeds, AGE could absolutely explode…

Sidon International (SD, TSX-V)

Sidon’s roller-coaster ride continues with the ride back up likely underway again…Sidon broke support at 16.5 cents last Monday and then proceeded to drop as low as 13 cents the following day when the CDNX plunged 46 points…these were “nervous nellies” – scared retail investors mostly, fearing the CDNX was about to fall off the cliff and take Sidon with it…this stock has shown clear trading patterns since last spring and has been quite volatile…however the primary trend is up and Sidon has consistently found support at or just above its rising 200-day moving average (SMA)…RSI(14) and Stochastics show a stock ready for a new move to the upside…BMR is looking forward to an interview soon with President and CEO Kamal Alawas – we’ll update investors on the exact timing of that as the week progresses…the first six holes have been completed over a strike length of 900 metres at Sidon’sMorogoro East Gold Property…the company reported zones of disseminated sulphides of pyrite and pyrrhotite as well as some chalcopyrite and arsenopyrite throughout all six holes over intervals of 30 to 70 metres…we caution that visuals are not always reliable but there’s reason to be optimistic that Sidon could be on to something…the company is also trying to develop a placer operation at Morogoro and has also acquired ground near Canaco’s discovery…Sidon remains locked in a very strong long-term uptrend as evidenced by the rising 100 and 200-day SMA’s…this company has come a long way since last March when we first introduced it to BMR readers at a nickel, and its new web site is just one more indication of how impressively Sidon has developed and matured…we see exciting possibilities for 2011…the company raised over $1 million through the exercise of options and warrants in November and December…

Seafield Resources (SFF, TSX-V)

For the first time since its big move at the beginning of December, Seafield closed below 50 cents last week and below its rising 50-day moving average (SMA)…the stock was off a nickel for the week, closing Friday at 48 cents, but volume on the fall below 50 cents was relatively light…we still view the overall trend since early December as very bullish and we’re expecting a significant turnaround in February…Seafield’s current market cap of approximately $70 million is very attractive as this company continues to work on building a substantial Gold resource at its Quinchia District properties in Colombia…on December 3, SFF announced a spectacular drill result from its Miraflores Property in Colombia and the stock rocketed to 77 cents…results are pending on nine more holes at Miraflores…given historical results, at least some of these holes should be very good…drilling now is taking place at Dos Quebradas, a property we believe gives Seafield its real “blue sky” potential at Quinchia… SFF reported December 8 that the first three holes had been completed at Dos Quebradas which is rich in porphyry targets over a wide area…DQ is just a few kilometres northwest of Miraflores…visual reports indicate that these three holes have similar styles of mineralization to an historical hole drilled by AngloGold that returned an interval of 39.5 metres grading 1.67 g/t Au…the potential of Dos Quebradas is evident from limited historical drilling and was confirmed by Seafield last year through soil geochemical surveys and magnetic surveys which are crucial to discovering hidden porphyries in areas of very little outcrop…Seafield also released results recently from trenching in one location from the southern end of the gold-in-soil anomaly that defines the northern extension of the Dos Quebradas porphyry…1.75 g/t Au was returned over 94 metres…Seafield has an excellent opportunity to develop a multi-million ounce Gold resource at its three major properties at Quinchia (Chuscal is the third property)…Seafield has in excess of $15 million in the bank to fund an aggressive program in Colombia…

Gold dropped as low as $1,308 overnight but is now recovering…as of 7:40 am Pacific, the yellow metal is up $12 an ounce at $1,327…Silver was down over 40 cents overnight but has also reversed and is now up 57 cents at $27.49…we remain convinced that $1,300 is “the line in the sand” on Gold as John’s recent “Big Golden Picture” chart outlined very effectively…the U.S. Dollar Index is up over one-quarter of a point at 78.05…the U.S. economy grew at a solid 3.2% annual rate in the final quarter of last year, slightly below expectations…this is after 2.6% growth in the third quarter…for all of 2010, the U.S. economy grew at a rate of 2.9%, its biggest gain since 2005…much stronger growth however will be required to put a dent in the high U.S. unemployment rate which is currently sitting (officially) at 9.4%…massive government deficits and debt at the federal, state and local levels is likely going to put a cap on U.S. growth in our view and force the Fed to maintain a very accommodating monetary policy for an extended period…the CDNX is ahead 13 points at 2247…the reason Gold is not about to fall off the cliff right now is because the action in the CDNX is clearly refuting that argument…also, while Gold made a new low yesterday, stocks did not…all signs point to a much better February as we believe Gold has found its bottom…Gold Bullion Development (GBB, TSX-V) touched its 100-day moving average (SMA) again this morning where there is exceptional support…this happened back in September, October and November, just prior to a major upside move…GBB’s chart continues to be a picture of beauty and based on the chart pattern we’ve seen over the past year, another important low has just been put in at 67 cents…GBB is recovering and is now up 2 pennies at 71 cents…Currie Rose Resources (CUI, TSX-V) is showing clear signs of bottoming out as well based on several indicators including heavily oversold RSI and Stochastics levels…CUI appears to have found strong support just above its still-rising 200-day moving average (SMA)…Currie Rose is currently off half a penny at 15.5 cents…Abcourt Mines(ABI, TSX-V), which got a buy recommendation yesterday from analyst Clive Maund, is ahead a penny at 19.5 cents…the ABI chart looks exceptionally strong going into February as Maund also pointed out…Adventure Gold (AGE, TSX-V) is showing renewed strength…it’s currently up 3 pennies at 45 cents…bargain hunters have stepped in on Seafield Resources (SFF, TSX-V) which dropped as low as 47 cents this morning…it’s currently unchanged at 49 cents…we remain very optimistic regarding Seafield and its trading action since early December has been bullish…GoldQuest Mining (GQC, TSX-V) out-performed the market in January which bodes extremely well for next month…it also has a great-looking chart and strong underlying fundamentals with a substantial deposit taking shape at its La Escandalosa Property in the DR…GQC is up half a penny at 38 cents…February is when GQC could finally bust through resistance in the low 40′s…Sidon International (SD, TSX-V) is unchanged at 13.5 cents, just above rock-solid technical support with a rising 200-day moving average (SMA)…Cadillac Mining (CQX, TSX-V) is up 2.5 cents at 29.5 cents…it had a strong but healthy pullback this month and a turnaround in February seems likely…

Markets are giving up some of yesterday’s big gains…after a bounce yesterday, Gold is getting is getting kicked this morning but we firmly believe there’s a high probability the yellow metal is making an important bottom…as of 8:55 am Pacific, Gold is off $26 an ounce at $1,320 (it fell as low as $1,315) while Silver has declined 68 cents to $26.93…this is the type of “shake out” action we love to see as a market looks for a bottom…the U.S. Dollar Index is up one-fifth of a point at 77.94…the CDNX’s powerful move yesterday, and the fact it’s holding up reasonably well this morning in the face of substantial weakness in Gold, is important evidence that the decline in precious metals is drawing to a close…theCDNX is currently off 9 points at 2242…the CDNX refused to break down below 2200 when it had an opportunity to do so the other day…its strong out-performance vs. Gold and the TSX Gold Index since early December is no fluke and tells us what direction Gold’s next big move is going to be…commercial traders, who are almost never wrong, also agree as they have sharply curtailed their short positions to levels not seen since prior to Gold’s big push last year…it’s never wise to bet against the commercial traders…Abcourt Mines (ABI, TSX-V), which received a buy recommendation this morning from newsletter writer Clive Maund, is unchanged at 19 cents after climbing as high as 21 cents…Abcourt also came out with more drill results from its Silver-Zinc Property near Val d’Or…three holes intersected two zones of high silver and zinc values…the 10,000 metre program continues with the goal being to upgrade and augment existing 43-101 reserves and resources which, in all categories, total 19.6 million ounces of silver and nearly 300,000 tonnes of zinc as detailed inAbcourt’s news release this morning…GENIVAR completed a feasibility study in 2007, showing robust economics at baseline prices of $15 for silver and 88 cents for zinc with an 1,800 tonne per day operation…most of the silver and zinc can be mined as open-pit…this property was a producer back in the 1980′s until plunging silver and zinc prices shut it down…Abcourt is also developing another former producer, the Elder Gold Mine, near Rouyn-Noranda…a 10,000 metre drill program continues there with very encouraging results…we see the potential for about 30,000 ounces of production per year out of Elder as an underground operation…it’s Abcourt’s goal to put Elder into production by the end of next year…considerable infrastructure is already in place…given the resources and reserves this company is sitting on, Abcourt’s current valuation of $21 million has to be considered cheap…another company we’re watching closely along the Cadillac Trend is Visible Gold (VGD, TSX-V)…VGD has taken a beating for no fundamental reasons since hitting a 52-week high of 70 cents in early December…the company is in a strong cash position and yesterday announced a $6.5 million exploration budget for this year with a target of 40,000 metres of exploration and definition drilling at its various properties…VGD has a current market cap of $19 million…the stock has strong technical support at 36 cents, just above its rising 100 and 200-day moving averages…VGD is led by an energetic President and CEO, Martin Dallaire who lives in Rouyn-Noranda and knows the area like the back of his hand…we suggest readers perform some due diligence on Visible Gold…the stock is currently down a penny at 40 cents…Gold Bullion Development (GBB, TSX-V) is off a penny at 73 cents…the stock continues to look very healthy from a technical standpoint and we’re anticipating more very good results from Granada…Seafield Resources (SFF, TSX-V) continues to hold support around the 50 cent area…its 50-day moving average (SMA) is 49 cents…new results from Quinchia can’t be far off…SFF’s 20-day SMA has been in decline since early this month…watch for a reversal in this as a sign that Seafield is ready to make its next move…the overall trading action in SFF since early December is long-term bullish…the stock is down half a penny at 49.5 cents…

GoldQuest Mining (GQC, TSX-V)

GoldQuest continues to look very healthy technically and closed the week up half a penny at 37 cents…the stock has been strongly supported by its rising 50-day moving average (SMA), currently at 34.5 cents, since October…it fell just briefly below the 50-day this month before snapping back…that temporary slight weakness may have been caused by the company’s acceleration of the warrant expiry date from a private placement last April to January 24…a total of 9,465,400 warrants were still outstanding as of December 24 (each warrant is exercisable to purchase one common share at a price of 20 cents per share), meaning as much as $1.9 million could be added to the company’s treasury this month as these warrants expire tomorrow…GoldQuest last week elevated director Bill Fisher to executive chairman…he has an impressive 30-year track record of accomplishments in the resource sector…most recently, he was former chairman of Aurelian Resources Inc. (taken over by Kinross) and from 2000 to 2008 he was the chief executive officer of GlobeStarMining Corp. which, during his tenure, developed, financed and built the Dominican Republic’s first copper mine at Cerro de Maimon (it was also taken over)…with impressive precious and base metal exposure, along with major new discovery potential, we’re very excited about GoldQuest’s prospects for this year which is why it’s one of our favorites for 2011…drilling has commenced at the company’s promising La Esandalosa Project in the Dominican Republic and results could build significantly on the recently released 43-101 inferred resource for that project…all of GoldQuest’s properties in the Dominican Republic and its zinc-lead-silver deposit in Spain have us very bullish on GQC going forward…the company, whose largest shareholder is Gold Fields Ltd., is well established in the DR and its property package there is a geologist’s (and an investor’s) dream…they have spent nearly a decade identifying many highly prospective precious and base metal targets, one of them being La Escandalosa (formerly Las Tres Palmas) where an inferred resource of 400,000 ounces of Gold has already been outlined (announced Nov. 16) based on just 25 drill holes at Escandalosa Sur from 2006 through 2010…it’s important to stress the 43-101 was completed on La Escandalosa at a very early stage and the possibility of a discovery well in excess of a million ounces is possible as this is such an attractive geological target…the deposit is open at depth as well as to both the south and the north toward another discovery of Gold mineralization by the company at Hondo Valle, approximately 1.2 kilometres away…Gold at La Escandalosa occurs as a flat-lying stratiform zone at shallow depth with mineralization interpreted to be part of a larger intermediate sulphidation replacement-style system which has now been defined intermittently over a strike length of 2,100 metres…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…GQC has more drilling to do there as well…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… GoldQuest is up 90% since we added it to our readers near the end of September…

Greencastle Resources (VGN, TSX-V)

Greencastle closed Friday at 28.5 cents, a loss of 2.5 cents for the week but volume over the trading period was was relatively very low at just under 350,000 shares…the market is waiting for news from Greencastle which made it clear in November that it’s in the process of getting more active in the Gold exploration space…President and CEO Tony Roodenburg is no doubt evaluating some advanced projects and when the right opportunity comes along, we’re sure he’ll pull the trigger…in the meantime he also has three Goldproperties – two in Nevada and one recent acquisition in British Columbia near Richfield’s Blackwater deposit – that are each worthy of major exploration programs…the company has at least $6 million in working capital and receives more than $100,000 each month in oil royalties…so the outlook for this company is extremely positive and it’s one of those stocks you can hold and not worry about as the assets are solid…the long-term chart is also very bullish with rising 100, 200 and 300-day moving averages (SMA) that are in no danger of reversing…it’s also interesting to note that Roodenburg, a large shareholder in VGN, has refrained from selling any of his holdings in recent months despite the fact the stock price more than tripled in value on high volume…this is different from past runs in the stock and adds further credence to our view that we haven’t seen the highs in this cycle yet from Greencastle – it’s poised for what we believe could be a massive breakout sometime during the first half of this year…Pinetree Capital has also accumulated more shares inGreencastle, so there’s every reason to be very optimistic regarding this company’s prospects in the days, weeks and months to come…Greencastle has doubled in value since we added it back in to the BMR model portfolio about three months ago…

Adventure Gold (AGE, TSX-V)

Adventure Gold fell 2 cents last week, closing Friday at 42 cents, but there’s lots happening with this company and our outlook is as bullish as ever…in a case of bad timing, AGEreleased significant news Thursday morning in the midst of the CDNX’s 65-point plunge…the company got some free drilling on its Granada Eastern Extension Property as it reported that one of Gold Bullion’s holes (#85) was drilled entirely on Adventure Gold property (just inside the boundary) while three other holes (#78, #83 and #98) were collared north ofAGE’s property but finished within it…this didn’t surprise us and it’s not an unusual event in the industry…it worked out well for both parties in this case, however – all the core from those holes has been given to AGE who will share results with GBB…this represents at least $100,000 of drilling and all AGE has to do is pick up the assaying costs…given GBB’s “hit ratio” on holes, it’s reasonable to assume that at least one of the holes (or partial holes) on AGE’s property could be of the “stellar” variety…with more results coming from Gold Bullion, we expect Adventure Gold will start to heat up again…they do hold small but strategic parcels of land around Granada (immediately to the south and the west in addition to the east) that could become part of a large open-pit…their claims hold significant potential value and they have drill assay results coming in without even doing their own drilling which they plan to start upon completion of their program at Pascalis-Colombiere…that property in the eastern part of the Val d’Or mining camp is heavily underrated in our view…a 2,500 metre drill program started at Pascalis-Colombiere last month and is testing the former L.C. Beliveau Mine at depth (below 300 metres) as well as near-surface parallel Goldstructures to the west…Pascalis-Colombiere is just 1.5 kilometres east of Richmont’s (RIC, TSX) operating Beaufor Gold Mine which has produced over one million ounces in its lifetime…it’s safe to assume Richmont will be watching developments at Pascalis-Colombiere with interest…Adventure Gold’s property has significant upside exploration potential…the geological setting is favorable for the identification of new high-grade Gold bearing veins and structures or bulk-style ore shoots…there are many untested areas and excellent potential at depth…L.C. Beliveau was a very profitable former producer…if AGE can prove up something significant through extensions to this deposit, we see a potential deal with Richmont which would be the natural choice to bring the mine back into production…we first mentioned Adventure Gold to our readers in an article September 29, just a couple of days following the company’s announcement that it had acquired land at Granada, when the stock was trading in the low 20′s…we officially added AGE to the BMR model portfolio at 34 cents October 28, so the gain since then is 24%…Adventure Gold has been around only since late 2007 and we are impressed by the company’s solid portfolio of properties (19 in six strategic areas in Quebec and Ontario)…also of immediate interest is AGE’s 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…the current initial deep drill hole onto the Meunier JV property is continuing…when completed it’s estimated the hole will provide a deep cut on the projected target area at about a vertical depth of 2,600 metres…this will enable shallower wedge cuts to be considered if significant mineralization is found to be present in this area…the initial deep hole was collared on LSG’s Timmins mine property last August and has now likely passed the 2,000 metre mark in depth…if this deep hole succeeds, AGE could absolutely explode…

Sidon International (SD, TSX-V)

Sidon had a relatively quiet week, trading less than four million shares on the CDNX and closing down 1.5 cents at 17.5 cents…the stock is finding strong technical support at its still-rising 50-day moving average (SMA) of 16.5 cents…we’ll be conducting an interview with President and CEO Kamal Alawas in the near future…we know he’s optimistic about the company’s fortunes…the first six holes have been completed over a strike length of 900 metres at Sidon’s Morogoro East Gold Property…the company reported zones of disseminated sulphides of pyrite and pyrrhotite as well as some chalcopyrite and arsenopyrite throughout all six holes over intervals of 30 to 70 metres…we caution that visuals are not always reliable but there’s reason to be optimistic that Sidon could be on to something…the company is also trying to develop a placer operation at Morogoro and has also acquired ground near Canaco’s discovery…Sidon remains locked in a very strong long-term uptrend as evidenced by the rising 100 and 200-day SMA’s…this company has come a long way since last March when we first introduced it to BMR readers at a nickel, and its new web site is just one more indication of how impressively Sidon has developed and matured…we see exciting possibilities for 2011…the company raised over $1 million through the exercise of options and warrants in November and December…

Seafield Resources (SFF, TSX-V)

Seafield continues to form a nice base in the low-to-mid-50′s in advance of what we believe will be a very strong 2011 for this company as it builds a substantial Gold resource at its Quinchia District properties in Colombia…the stock was off 3 pennies for the week, closing at 53 cents – 6 pennies above its rising 50-day moving average (50)…Seafield has simply refused to close below December’s 50-cent financing price…the trading action since early December has been impressive and the technicals suggest Seafield is at the bottom of a new trading range…on December 3 the company announced a spectacular drill result from its Miraflores Property in Colombia and the stock rocketed to 77 cents…results are pending on nine more holes at Miraflores…given historical results, at least some of these holes should be very good…drilling is also underway at Dos Quebradas, a property we believe gives Seafield its real “blue sky” potential at Quinchia… SFF reported December 8 that the first three holes have been completed at Dos Quebradas which is rich in porphyry targets over a wide area…DQ is just a few kilometres northwest of Miraflores…visual reports indicate that these three holes have similar styles of mineralization to an historical hole drilled by AngloGold that returned an interval of 39.5 metres grading 1.67 g/t Au…the potential of Dos Quebradas is evident from limited historical drilling and was confirmed bySeafield last year through soil geochemical surveys and magnetic surveys which are crucial to discovering hidden porphyries in areas of very little outcrop…Seafield also released results recently from trenching in one location from the southern end of the gold-in-soil anomaly that defines the northern extension of the Dos Quebradas porphyry…1.75 g/t Au was returned over 94 metres…Seafield has an excellent opportunity to develop a multi-million ounce Gold resource at its three major properties at Quinchia (Chuscal is the third property)…with a current market cap of $78 million and approximately $20 in the bank to fund an aggressive program in Colombia, Seafield still has considerable upside potential…

Gold is taking a hit today and commodities in general are weak across the board after economic data came out of China this morning…that country’s GDP rose a sharp 9.8% in the fourth quarter on a year-over-year basis, fueling speculation that China will once again tighten its monetary policy…we’ve seen this show before and we encourage readers not to get caught up in these day-to-day events that day traders zero in on…we’re staying focused on the big picture which remains solidly positive for precious metals and commodities in general…as John outlined in his Gold chart last weekend, the possibility of Gold falling as low as $1,300 in a “wash out” move certainly exists (would not alter the bullish trend) and any such event would have to be viewed as one of those classic opportunities that have occasionally occurred in Gold throughout this bull market…as of 8:30 am Pacific, the yellow metal is off $22 an ounce at $1,349…Silver has dropped below strong support at $28 (it’ll be interesting to see if it moves back up above $28 by day’s end) and is currently off $1.16 at $27.59…a mini-correction appears to have set in with the CDNX which has failed on three occasions since early this month to move past the low 2300′s…the first major area of support on the CDNX is 2200…below that, the 50-day moving average (2150) provides very strong secondary support…and then another major support level is a trend channel between 2100 and about 2135…as of 8:30 am Pacific, the CDNX has shed 62 points and is currently sitting at 2223…this reminds us a lot of last November’s mini-correction which ended very abruptly…it’s important to stress that the overall trend with the CDNX remains exceptionally bullish and this brief period of weakness – just like every other pullback we’ve seen since this bull market started in late 2008 – presents some tremendous opportunities…Gold Bullion Development (GBB, TSX-V) is off 4 cents at 70 cents…GBB is strongly supported by its rising 100-day moving average (SMA) at 67 cents which has underpinned this stock going back to 2009…Granada has consistently delivered solid results since last spring and there’s no reason why that won’t continue as the LONG Bars Zone is such a tremendous geological target…our gut feeling is that we may see an update on Granada from GBB prior to the start of the Vancouver Resource Show Sunday, so that means by tomorrow sometime…look for potential news from other companies as well…GoldQuest Mining (GQC, TSX) has announced this morning that Bill Fisher has been named Executive Chairman of the Board…as stated in GQC’s news release, “His experience in the discovery, financing and development of mineral properties is outstanding, coupled with his long-established relationships in both the Dominican Republic and Spain. Most importantly, Bill has an extraordinary record of building shareholder value”…GoldQuest is conducting a major drill program in the DR where it has a fabulous pipeline of advanced and early staged exploration projects…GQC is off 2.5 cents at 34.5 cents…keep an eye as well on Everton Resources (EVR, TSX-V) which will be the first of the two companies to report drill results from the DR… Everton is currently up half a penny at 32.5 cents…Abcourt Mines (ABI, TSX-V) is down 3 cents at 19 cents…any further weakness in ABI has to be considered a gift given the fundamentals underlying this situation as we have already pointed out…there is a huge amount of technical support on ABI between 15.5 and 17.5 cents…times like these take nerves of steel and separate the successful investors from unsuccessful ones who panic and throw good stocks overboard when they see many others selling…our advice is to remain unemotional and search for quality situations, like the ones we focus on at BMR, that are being knocked down with the rest of the market and present low-risk entry points based on simple technical and fundamental analysis…the companies mentioned above – GBB, ABI, GQC and EVR – are just four such examples…others obviously include Seafield Resources (SFF, TSX-V), Cadillac Mining (CQX, TSX-V), Adventure Gold (AGE, TSX-V), Richfield Ventures (RVC, TSX-V), Sidon International(SD, TSX-V), Greencastle Resources (VGN, TSX-V), Colombian Mines (CMJ, TSX) and Excel Gold Mining (EGM, TSX-V)…we’re looking at other potential opportunities as well…it’s a great time to go fishing – you never know what you may catch…

8:00 am Pacific

Gold continues to hold above strong support at $1,350…the yellow metal has traded between $1,356 and $1,366 so far today…as of 8 am Pacific, Gold is off $2 an ounce at $1,360…Silver is down 18 cents at $28.30 while the U.S. Dollar Index is up one-quarter of a point to 79.34…Morgan Stanley has upgraded its 2011 Gold price estimates by 6.5% to $1,400 an ounce and its 2012 estimates by 6.4% to $1,330 an ounce…the broker also lifted its long-term price estimate by 21% to $905 an ounce in constant-dollar terms… “Identified and implied investment has increasingly become the main driver of demand in the gold market,” Morgan Stanley stated…it added that investment demand as a percentage of total demand increased to 31% in 2010, up from 9% in 2002…”We expect this percentage to rise further, to 43.5% in 2012, reflecting the continued growth in physically backed exchange-traded funds and physical bar hoarding”…ahead of his visit to Washington this week, Chinese President Hu Jintao has called the current U.S. dollar-dominated system a “product of the past” and has highlighted moves to turn the yuan into a global currency…a suite of data from Beijing is due Thursday including December inflation and fourth quarter economic growth which may provide clues on how much additional monetary tightening may be required in China over the coming months…the CDNX is steady so far this morning at 2270…Cadillac Mining (CQX, TSX-V) has added a major new project to its portfolio…the company has essentially tied up an entire former mining camp, securing all the known hard-rock Gold occurrences of the historic Goldstrike District in southern Utah…mining last took place there between 1988 and 1996 when 210,000 ounces of Gold and nearly 200,000 ounces of silver were recovered from 6,858,000 short tons of ore taken from 12 near-surface deposits extending over a roughly four-mile long trend…Cadillac President and CEO Victor Erickson stated, “Cadillac’s re-consolidation of the Goldstrike District presents an extraordinary opportunity…by applying recent advances in the understanding of Great Basin deposit models to a camp that was last mined at a time of much lower and declining Gold prices, we are confident that the potential for discovery of economic surface and deep-seated gold mineralization is high”…CQX, which also holds strategic properties along the Cadillac Trend in northwestern Quebec, is currently up two pennies at 38 cents…we’ll have more by tomorrow on Cadillac’s interesting acquisition…Gold Bullion Development (GBB, TSX-V) is off three pennies at 75 cents…the stock continues to trade in an area of strong technical support and staged a nice rebound Friday after dropping as low as 71 cents…GoldQuest Mining (GQC, TSX-V) is up half a penny at 37 cents…GoldQuest’sstrength recently has been particularly impressive considering the company recently accelerated the warrant expiry date from a private placement last April…the new expiry date is next Monday, January 24…if all warrants are exercised, GoldQuest will add an additional $2 million to its treasury…the company continues to drill its very promising La Escandalosa Project (formerly Las Tres Palmas) in the Dominican Republic…Seafield Resources (SFF, TSX-V), which is expected to come out with more results in the near future from its Quinchia Project in Colombia, is off a penny at 55 cents…Currie Rose Resources (CUI, TSX-V) has stabilized after last week’s drop and is currently down half a penny at 18 cents…markets are generally quiet this morning, looking for direction…

GoldQuest Mining (GQC, TSX-V)

GoldQuest was up three pennies on improved volume last week, closing Friday at 36.5 cents…the stock has been strongly supported by its rising 50-day moving average (SMA), currently at 33.5 cents, since October…it fell just briefly below the 50-day this month before snapping back…that temporary weakness may have been caused by the company’s acceleration of the warrant expiry date from a private placement last April to January 24…a total of 9,465,400 warrants were still outstanding as of December 24 (each warrant is exercisable to purchase one common share at a price of 20 cents per share), meaning as much as $1.9 million could be added to the company’s treasury by that new expiry date which is just one week away…at this point, so close to the expiry date, any additional selling of the stock in order to exercise warrants should be very minimal…technically, GQC is looking healthy and a turnaround in the 20-day SMA appears to be close at hand (the week of January 24 at the latest perhaps)…with impressive precious and base metal exposure, along with major new discovery potential, we’re very excited about GoldQuest’s prospects for this year which is why it’s one of our favorites for 2011…drilling has commenced at the company’s promising La Esandalosa Project in the Dominican Republic and results could build significantly on the recently released 43-101 inferred resource for that project…all ofGoldQuest’s properties in the Dominican Republic and its zinc-lead-silver deposit in Spain have us very bullish on GQC going forward…the company, whose largest shareholder isGold Fields Ltd., is well established in the DR and its property package there is a geologist’s (and an investor’s) dream…they have spent nearly a decade identifying many highly prospective precious and base metal targets, one of them being La Escandalosa (formerly Las Tres Palmas) where an inferred resource of 400,000 ounces of Gold has already been outlined (announced Nov. 16) based on just 25 drill holes at Escandalosa Sur from 2006 through 2010…it’s important to stress the 43-101 was completed on La Escandalosa at a very early stage and the possibility of a discovery well in excess of a million ounces is possible as this is such an attractive geological target…the deposit is open at depth as well as to both the south and the north toward another discovery of Gold mineralization by the company at Hondo Valle, approximately 1.2 kilometres away…Gold at La Escandalosa occurs as a flat-lying stratiform zone at shallow depth with mineralization interpreted to be part of a larger intermediate sulphidation replacement-style system which has now been defined intermittently over a strike length of 2,100 metres…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…GQC has more drilling to do there as well…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… GoldQuest is up 87% since we added it to our readers near the end of September…

Adventure Gold (AGE, TSX-V)

Adventure Gold fell three more cents last week, closing Friday at 44 cents, but volume was light and the stock remains in a long-term overall uptrend based on technical analysis…while AGE has dropped below its 50-day moving average (SMA), the 50-day continues to rise and the 100-day SMA at 37 cents provides exceptional support…2011 is shaping up to be an active and potential breakthrough year for this young company which intends to be very aggressive on the exploration front…during our recent visit to Rouyn-Noranda we were able to explore in greater detail this company’s projects…as a result we’ll be reporting more on Adventure Gold in the days and weeks ahead as time allows…one of this company’s most underrated assets is its Pascalis-Colombiere Property in the eastern part of the Val d’Or mining camp…a 2,500 metre drill program started there last month and is testing the former L.C. Beliveau Mine at depth (below 300 metres) as well as near-surface parallel Gold structures to the west…Pascalis-Colombiere is just 1.5 kilometres east ofRichmont’s (RIC, TSX) operating Beaufor Gold Mine which has produced over one million ounces in its lifetime…it’s safe to assume Richmont will be watching developments at Pascalis-Colombiere with interest…Adventure Gold’s property has significant upside exploration potential…the geological setting is favorable for the identification of new high-grade Gold bearing veins and structures or bulk-style ore shoots…there are many untested areas and excellent potential at depth…L.C. Beliveau was a very profitable former producer…if AGE can prove up something significant through extensions to this deposit, we see a potential deal with Richmont which would be the natural choice to bring the mine back into production…we first mentioned Adventure Gold to our readers in an article September 29, just a couple of days following the company’s announcement that it had acquired land at Granada, when the stock was trading in the low 20′s…we officially added AGE to the BMR model portfolio at 34 cents October 28, so the gain since then is 29%…our interest in Adventure Gold, however, goes far beyond the company’s involvement at Granada, as exciting as that is…they do hold a small but strategic slice of land in the Granada Eastern Extension and also more property west and south of GBB’s Preliminary Block Model area…they’ve already produced some very interesting prospecting results on their land in the west…Adventure Gold has been around only since late 2007 and we are impressed by the company’s solid portfolio of properties (19 in 6 strategic areas in Quebec and Ontario)…also of immediate interest is AGE’s partnership with Lake Shore Gold (LSG, TSX) on the Meunier 144 Property where deep drilling is currently testing the down plunge extension ofGold zones located at the Timmins and Thunder Creek deposits…Lake Shore recently provided an update on this project…the current initial deep drill hole onto the Meunier JV property is continuing and when completed is estimated to provide a deep cut on the projected target area at about a vertical depth of 2,600 metres…this will enable shallower wedge cuts to be considered if significant mineralization is found to be present in this area…the initial deep hole was collared on LSG’s Timmins mine property last August and was last reported at around 1,900 metres in depth….the Timmins deposit straddles a volcanic/sedimentary/ultramafic contact zone within a folded sequence that plunges 54 degrees to the west-northwest toward the Adventure Gold Meunier JV property…if this deep hole succeeds, AGE could absolutely explode…

Seafield Resources (SFF, TSX-V)

Seafield firmed up last week on strong volume and closed Friday at 56 cents, a gain of 6 pennies from January 7 when the CDNX approved its $15 million private placement at 50 cents…we really like the way this stock has traded since December 3 when the company announced a spectacular drill result from its Miraflores Property in Colombia and the stock rocketed to 77 cents…results are pending on nine more holes at Miraflores…given historical results, at least some of these holes should be very good…drilling is also underway at Dos Quebradas, a property we believe gives Seafield its real “blue sky” potential at Quinchia… SFF reported December 8 that the first three holes have been completed at Dos Quebradas which is rich in porphyry targets over a wide area…DQ is just a few kilometres northwest of Miraflores…visual reports indicate that these three holes have similar styles of mineralization to an historical hole drilled by AngloGold that returned an interval of 39.5 metres grading 1.67 g/t Au…the potential of Dos Quebradas is evident from limited historical drilling and was confirmed by Seafield last year through soil geochemical surveys and magnetic surveys which are crucial to discovering hidden porphyries in areas of very little outcrop…Seafield also released results recently from trenching in one location from the southern end of the gold-in-soil anomaly that defines the northern extension of the Dos Quebradas porphyry…1.75 g/t Au was returned over 94 metres…Seafield has an excellent opportunity to develop a multi-million ounce Gold resource at its three major properties at Quinchia (Chuscal is the third property)…with a current market cap of $82 million, SFF still has considerable upside potential…the stock seems to refuse to close below the financing price of 50 cents…

Colombian Mines (CMJ, TSX-V)

Colombian remains quiet and closed unchanged for the week at 87 cents…the stock is currently sandwiched in between its rising 50-day moving average (SMA) at 88 cents and its rising 100-day SMA at 85 cents…a declining 200-day SMA has so far kept CMJ from breaking out with authority but investors just need to be patient…we like CMJ because it’s an experienced operator in Colombia with a large land position (more than 150,000 hectares) covering many excellent geological targets…its flagship property is Yarumalito, just north of Medoro’s Marmato deposit and of course close to Seafield’s Quinchia Project…drilling continues at Yarumalito…just over three months ago the company reported assay results for seven more holes with the best result being a 151-metre section in porphyry from YAR-24 grading 0.64 g/t Au…YAR-14 returned 95.5 metres of 0.70 g/t Au…Yarumalito continues to show promise but these are still early days and much more drilling is required…the company’s El Dovio Property, approximately 100 kilometres southwest of Yarumalito, also has our attention…in November the company announced that recent channel sample results have extended high grade Gold-silver-copper mineralization over a much larger width than indicated by historical information at the 9,300-hectare El Dovio Property…all samples returned significant polymetallic mineralization…six samples contained Gold in excess of 10 grams per tonne, with individual two-meter channel samples assaying up to 25.55 grams per tonne Gold, 66.88 grams per tonne silver and 13.5 per cent copper…CMJ, which reported cash on hand of over $3 million as of July 31, is in good position for a strong 2011…the chart is telling us that positive developments are on the way…CMJ is up 45% since we added it to the BMR model portfolio just over a year ago…

Sidon International (SD, TSX-V)

Sidon continues to build a nice base in the high teens and closed Friday at 19 cents, a 1.5 cent loss for the week…there was news Thursday which gave more encouraging indications from early drilling at the company’s Morogoro East Gold Property in Tanzania…the first six holes have been completed over a strike length of 900 metres…Sidon reported zones of disseminated sulphides of pyrite and pyrrhotite as well as some chalcopyrite and arsenopyrite throughout all six holes over intervals of 30 to 70 metres…visuals are not always reliable but there’s reason to be optimistic that Sidon could be on to something…the company is also trying to develop a placer operation at Morogoro…Sidon remains locked in a very strong long-term uptrend as evidenced by the rising 50, 100 and 200-day moving averages (SMA)…there was some significant news on the Sidon front in mid-December as the company picked up ground (50.5 square kilometres) northeast of Canaco’s (CAN, TSX-V) Magambazi Property, immediately north of Douglas Lake Minerals‘ acquisition which borders Canaco’s property…strategically, this was a smart move on Sidon’s part and helps underpin if not enhance the company’s value…it meant giving up an option, for now at least, to acquire more land adjacent to its Morogoro East Gold Property to the south…given a choice between the two properties, Sidon made the right call in our view though the process appeared a little messy to investors…this company has come a long way since last March when we first introduced it to BMR readers at a nickel, and its new web site is just one more indication of how impressively Sidon has developed and matured…we see exciting possibilities for 2011…the company raised over $1 million through the exercise of options and warrants in November and December…

Excel Gold Mining (EGM, TSX-V)

Excel has been our worst performer over the last three months (it’s down 25% since we added it to the BMR model portfolio in early October) but seems to have stabilized in the vicinity of its 200-day moving average (SMA)…the stock closed Friday at 12.5 cents, a loss of 1 penny for the week…a recent positive development is that MineralFields has sold the last of its current free trading stock (300,000 shares were dumped at 12 cents December 29) which will relieve some selling pressure…MineralFields still has 10 million or so warrants to purchase additional shares but for now they’re out of the market…while there are probably better near-term opportunities on the CDNX right now than Excel, this is a company with a terrific asset - the Montauban Mining Camp Project, 120 kilometres west of Quebec City – and patient investors with a medium to long-term outlook have a good chance to do extremely well…Excel seems to be following a technical pattern very similar to Sidon which ran hard to 18 cents and then gradually traded down very close to its 200-day SMA before reversing again to the upside…Excel’s 50-day SMA is still in decline and the turnaround for this stock will come only when that reverses which, looking at the charts, could realistically occur within the next month or so…the company continues to drill the Montauban Property which is a former Gold, silver and base metals producer…