First, Louvem Mines basically is an unknown factor in the gold share investment world. Then, why has its share price outperformed every commodity and stock price in the world recently? The only answer is that a few fair sized buyers feel that the shares are grossly undervalued. How informed are these buyers?

This is what is known: the majority owner(70%) of Louvem Mines, Richmont Mines, has recently pulled out of two of their exploration projects, has another on hold, and is stepping up drilling at Louvem's Beaufor mine. For the year 2009 they plan 45,000 meters of infill and exploratory drilling versus 26,000 for their other operating property, the Island Gold Mine. So, its fairly obvious from the numbers that Richmont feels very confident in putting money into the Beaufor property. Most exciting for Louvem shareholders is the recent big increase in inferred gold resources at the mine property.

Richmont has stated that they are always on the prowl for acquisitions and new partnerships. Well, since their new direction is now being focused at the Beaufor property, it only makes sense that they are possibly looking at increasing their land holdings in the area with their 50% partner Louvem or possibly speaking to Adventure Gold concerning a relationship. Adventure Gold recently has discovered a new gold source directly adjacent to the north of the Beaufor Mine. Adventure is starting a small drilling campaign in mid-March on their Val-D'Or properties and Timmins property which I'm sure will include Beaufor North. Will they locate more gold next to our property?

It seems to me that the general area of the Beaufor Mine is generally unexplored at depth. Is Richmont sensing that the total gold structure in the area has much more potential that is currently known? I would say the answer to the question is yes, just based on the recent performance of Louvem's share price.

IMHO the gold stocks recorded a low yesterday and also on the XAU Index chart a right shoulder of a head and shoulders bottom formation. The neckline on the formation is about 135 on the chart. The chart can be viewed at bigcharts.com by selecting XAU in the stock request box. At last watch, the XAU Index was higher by 6.66 at 116.59. There is an old saying that the best stock for the next big move is the one the strongest stocks in the group today. Louvem certainly fits this requisite.

The XAU is capable, as a result of its recent months of bottoming, of busting through the 135 to 140 area(where the 1000 day average is located) and putting in a strong advance. If it does, Louvem will participate by moving even higher.