RE: will this story just fade away...?July 30, 2010
The BMR Portfolio
Gold Bullion Development (GBB, TSX-V)
Gold Bullion was the second most active stock on theCDNX Friday (right behind another BMRgem), gaining 3 cents on volume of 4.5 million shares to close the weekat 58 cents…for the week, GBB was up 9 cents or a veryrespectable 19%…its 10 and 20-day moving averages, which were indecline for much of the month, have now swung positive which bodes wellentering the month of August…all of GBB’s movingaverages are now once again in bullish alignment…for those investors whomay have been expecting a much more dramatic move in GoldBullion today, following yesterday’s stellar exploration newsfrom Granada, our advice is to keep focused on the “Big Picture” that’sclearly unfolding here and let this “play itself out”…day-to-day movescan sometimes be unpredictable for different reasons…a lot of dynamicscan be at play in this type of situation and the market has to digestinformation…the bottom line, in our view, is that Gold Bullionis on track for a huge discovery at Granada…this is speculation on ourpart but there is a strong case for the LONG Bars Zone containing atleast 5 or 6 million ounces…assay results from the east-northeast area,where significant zones of altered feldspar porphyry have beenintersected in each and every hole as well as visible gold in many ofthose holes, will go a long way toward confirming that prediction of atleast 5 or 6 million ounces…some of the core must look outstanding asGENIVAR has already confirmed that the geological structure of the LONGBars Zone extends east of Phase 1 discovery hole GR-10-17, and GoldBullion reaffirmed in yesterday’s release that mineralizationat Granada remains open in all directions and appears broad-based andnear-surface…analyzing previous news releases, the pace of drilling inthe east-northeast has picked up by approximately 40% per day(from 100 metres per day to 140 metres per day) over the last two weekswhich is another bullish sign indicating a sense of confidence andurgency on the part of GENIVAR…in otherwords, they keep hitting theright kind of structures…they are also drilling down to 350 metresvertical depth in some cases and they wouldn’t be doing that unless theywere seeing the right stuff…this is an extremely compelling geologicalstory and what has developed so far could very well be just the tip ofthe iceberg…there is still LONG Bars Zone 2 to explore, 1500 metres eastof GR-10-78, plus much more prospective ground…the Preliminary BlockModel with a potential non-compliant resource of 2.4 to 2.6 millionounces is looking very solid…stellar assay results were releasedyesterday on Holes 33 and 41 – the best assays so far from Granada…theseholes were drilled in areas where only limited historical drilling hastaken place…with a market cap of just $71 million and a possiblemulti-million ounce open-pit deposit on its hands, in the world’s bestjurisdiction for mining and exploration, Gold Bullion’supside potential is truly enormous…