BMR Morning Market Musings…

Gold is taking a slight breather today after marching to a new all-time high Friday…Gold is essentially unchanged at $1,255.90 as of 7:50 am Pacific time…the CDNX is up 7 points to 1495…the Venture is clearly in a new uptrend and the first major area of resistance is 1560, right around the 50 and 100-day moving averages…if the CDNX is able to clear that hurdle, look out…we expect a powerful week for Gold Bullion Development (GBB, TSX-V) as the market begins to anticipate the first results from Phase 2 drilling at the Granada Gold Property…as outlined in our Week In Review And A Look Ahead yesterday, GBB’s Phase 2 results in theory and in general should even be better than Phase 1 as GENIVAR learned so much from that first 2,800 metres of shallow drilling in December and January…given the impressive Aukeko and Austin-Rouyn showings and historical workings to the east (approximately 2.2 and 3.5 kilometres respectively), and the favorable geology that runs right out to those areas on strike from GR-10-17, the LONG Bars Zone has become a massive target that clearly has the potential to host far more than the 2.4 to 2.6 million ounces already projected (non-43-101 compliant) within just the Preliminary Block Model…there are few opportunities like this, as we see it, in the market today…location is also a key aspect of this play as Granada is surrounded by all the necessary infrastructure for a giant open-pit operation…it’s also in a politically safe and favorable jurisdiction (ranked #1 in the world) for mining and exploration – Quebec…Gold Bullion is down a penny at 56 cents as of 7:45 am…