I just had to re-post ---it has so much good information and remind ourselves why we took a position in Sidon Resources

Today’s news from Sidon, however, made us pull the trigger. It was hugely significant for a company with a market cap of only $4 million. Exploration success at Handeni has given Canaco a market cap of $60 million – Tanzania is hot and still has enormous untapped potential even after a significant number of major discoveries over the past decade.

Laurence Stephenson is Sidon’s consulting geologist who lives in White Rock, BC, not far from us. This veteran geologist knows Tanzania like the back of his hand, and he’ll be heading out there again late next week. He is hugely bullish on this part of the world for gold exploration and very excited about what he has found for Sidon. “The grades at Morogoro East are higher than what I first saw at Canaco,” Stephenson explained to us this afternoon. “The big companies haven’t had the expertise or the time to look around. It’s like the wild frontier of the 1860’s. This area hasn’t had any exploration. The gold and formations are really interesting.”

The Morogoro East Property is a flat-lying sedimentary-type horizon that Stephenson believes could be drill-ready as early as June. The grades local miners have been scoring (and they’re only processing the free gold, not the sulphides) are astronomical – 40 to 60 grams of gold per 25-kilogram bag of recovered rock which equates to approximately 1,600 grams per tonne. Little pits can sometimes develop into big gold mines, and that’s what Sidon will be hoping for here. There is gold at Morogoro and perhaps LOTS of it including high grade.

Tanzania is a mining friendly jurisdiction. Ten years ago, when it had only a million ounces of gold reserves, it revamped its Mining Act which brought in huge amounts of new investment. Now it has over 50 million ounces of reserves, contributing significantly toward the country’s annual GDP and placing it third among African-producing countries behind only South Africa and Ghana.

Sidon has been searching for a flagship, company-making project and we believe they have scored a coup on this Morogoro East option deal with Kokanee Placer Ltd. through its private Tanzanian subsidiary company.

Sidon has 78 million shares outstanding and its empty bank account at the moment is not a concern for us (Gold Bullion and Seafield were both in the same position before they exploded). Sidon will have no problem raising money for a project such as Morogro East – the 80% option is for 7 million shares, $1.5 million in cash and $1.5 million in exploration over a two-year period.

From a technical standpoint, now is clearly the time to be positioned in Sidon. The volume breakout March 22 was a sign that something big was developing with this company – we saw a similar volume breakout with Gold Bullion in early December last year. All of Sidon’s moving averages are in bullish alignment. The stock has been under heavy accumulation and seems poised to bust through resistance between 6 and 7 cents and challenge its 2008 high of 17 cents as the three-year chart below illustrates:

Sidon is poised for a major technical breakout as this three-year chart illustrates.

At BullMarketRun we specialize in identifying situations exactly like Sidon – a company with a low market cap, entrepreneurial drive, an excellent project and a great story to tell that the overall market just hasn’t discovered yet. We’ll be reporting much more on Sidon in the days and weeks ahead. The stock closed today at 5.5 cents, up a penny on volume of 5.2 million shares.