BMR Morning Musings…

Gold is stronger this morning, up $4 an ounce as of 7:30 am Pacific to $1,186…Reuters reported this morning that China is expanding the Gold market…the country will allow its banks to export and import more Gold as part of a program to push forward the development of the country’s market in the precious metal…the People’s Bank of China also said it would allow banks to hedge their positions in Gold in overseas markets…according to Frank Holmes, CEO of U.S. Global Investors, China is now the “largest gold producer in the world” and also a leading consumer…the country bought so much Gold in 2009 that it equaled 11% of global Gold demand…China’s central bank currently holds 1,054 tons of gold, and in the first quarter of 2010, jewelry demand in the country grew 11% to 105.2 tons, according to the World Gold Council…oil prices have made a nice move (up 55 more cents this morning to $81.89, a 3-month high) and the strength in copper prices (up 20% since copper put in a bottom June 7) is a very positive sign of a pick-up in demand and an improving overall worldwide economy…the copper price has proven to be a very accurate leading indicator…so too is the CDNX which is up another 12 points this morning to 1438…we turned very bullish on the CDNX a few weeks ago, shortly after a bottom was put in at 1343…BMR is returning to the LONG Bars Zone for an important site visit imminently…we have a couple of properties to check out in Quebec but Granada is first on our list after last Thursday’s news that indicates something potentially very big is unfolding in the eastern extension of Gold Bullion’s Granada Gold Property, 65 kilometres west of Osisko’s (OSK, TSX) massive Canadian Malartic Deposit…we spoke with GBB President & CEO Frank Basa yesterday who has agreed to an in-depth interview with us very shortly…he stated a lot of geological information is being compiled and reviewed at the moment, and he’ll be ready to talk at length very soon…he also stated, “theoretically and potentially, the first assay results from the eastern extension could come any day now”…he added he can’t say for sure when more news will be out (assay labs all over Quebec and Ontario are slow right now) but quite a few holes are “in the pipeline” and the flow of results is underway after three months of drilling…he sounded upbeat and extremely encouraged by the very good visuals GENIVAR is getting in the eastern extension where 27 Phase 2 holes (6,000 meters) had been drilled as of July 28….after reviewing Thursday’s news in more detail in addition to historical reports on Granada and the area, BMR is more convinced than ever that the length of the LONG Bars Zone will prove to be stunning with a north-south width of approximately 400 metres and a thickness that appears to be increasing going east…GBB is off 2 pennies in early trading at 56 cents…