BMR Morning Market Musings…

Markets are weak this morning in advance of the Fed statement later today…Gold dipped as low as $1,190 and as of 7:45 am Pacific the yellow metal is trading at $1,193, down $8 on the day…a slight pullback in Gold after a recent strong run is not surprising…any hint of “quantitative easing” by the Fed later today should give Gold another boost…the Dow is down 107 points while the TSX is off 85…the CDNX, after 8 straight advancing sessions, has shed 10 points to 1459…Gold Bullion Development (GBB, TSX-V), which staged a nice reversal yesterday, has given back 4 cents this morning to 52 cents…Gold Bullion’s potential is clearly evident from results released yesterday by Osisko Mining (OSK, TSX) from Brett Resources’ (BBR, TSX-V) Hammond Reef Project in western Ontario…Brett of course is currently 77.2 per cent held by Osisko and is being fully acquired as a result of Osisko’s recent all-stock bid…the best result from 32 holes of continued infill drilling at Hammond Reef was 130 metres grading 1.07 g/t Au, almost the exact result Gold Bullion recently reported from Hole 33 within its Preliminary Block Model…our point is that while Hammond Reef is a quality resource (6.7 million ounces inferred, 259.4 million tonnes grading 0.80 g/t Au), Granada in our view is developing into an even better project and has a market cap of only $65 million vs. over $500 million for Brett…Osisko and others have to be watching developments at Granada with interest…