The BMR Portfolio (1st of 2 Parts):

Gold Bullion Development (GBB, TSX-V)

Gold Bullion has closed its $8 million financing (announced Friday morning) and it’s now armed with over $10 million in its bank account, all the money it needs to take exploration in the LONG Bars Zone of the Granada Gold Property to the next level…even at a burn rate of $1 million per month or slightly more, GBB won’t have to concern itself with another financing until well into next year…the company should also be getting some money back from the Quebec government for drilling expenditures and some warrants will also undoubtedly be exercised over the coming months, so Gold Bullion is very well positioned financially to make things happen at Granada…there has not been an exploration update from Granada since mid-September, just prior to the financing, which doesn’t concern us in the least…it’s safe to assume that the news flow should pick up again in November…there is every reason to believe, based on the geological reports we’ve read and the results to date, that mineralization at Granada is over an extremely large area…this deposit model is all about volume, so the more Gold Bullion drills and the quicker it drills the better…it will take time to confirm but at the end of the day, as we’ve stated repeatedly, the potential of a 5 million+ ounce LONG Bars Zone open-pit deposit is very real…given the strength of Gold and the CDNX, and where we see these markets going in 2011, any company that can demonstrate it has a multi-million ounce near-surface Gold deposit (especially in a mining friendly and safe jurisdiction such as Quebec) is going to command a very high valuation, well into the hundreds of millions of dollars…Gold Bullion is showing bullish new technical signs, gapping up Friday and closing at 63 cents (for a weekly gain of 6 cents) on its highest CDNX volume day (nearly 1.4 million shares) in a month…as John pointed out in his GBB chart analysis Friday night, on Thursday there was a breakout above the top of the triangle at a point approximately 3/4 of the distance between the start of the triangle and the apex…that was a significant development as this is the area where breakouts have the greatest upward force…support held for GBB at its rising 100-day moving average over the last 6 weeks, and now the 20-day SMA has reversed to the upside which suggests a new uptrend in the stock is indeed underway…GBB has jumped 800% since we introduced the company to BMR readers last December…