If there is one thing that is consistent in this volatile market; it is the performance of gold, which seems to be forming a strong base in $1200-$1250 per ounce range. The secular bull trend in gold over the last decade shows no sign of weakness. The vast majority of industry watchers and analysts seem to believe that gold has room to run higher, much higher from these levels. The next level for gold is forecasted to be in the range of $1400-$1500 if the support around $1200 holds.

Ubika Research’s analyst, Vikas Ranjan, in his recent interview with “The Gold Report” expressed this view when he made a prediction for gold to rally in coming months from the current level. The full interview is available for free HERE.

Ubika Research believes that the focus on gold will lead to renewed interest in promising junior gold companies. For the investors looking to find the next investment “home-run”, we believe promising junior gold exploration companies present a very compelling case. This is especially true now when the price of gold seems to be in a secular uptrend. In the last two years, there have been a number of junior gold exploration companies, such as Rubicon Minerals (TSX-RMX), Queenston Mining (TSX-QMI) and Rainy River (TSX-VEN-RR), to name a few, which experienced significant gains, their share prices multiplying several times within a short period of time. (Incidentally, Rainy River is a former SmallCapPower Junior Resource Stock of the Week).

One such promising junior gold exploration company, Bayfield Ventures Corp. (TSXV: BYV) demonstrated such interest from investors yesterday when rose 15% on a heavy volume of 2.6 million shares. Ubika Research had issued a profile report on Bayfield Ventures Corp. under its weekly feature “Junior Resource Stock of the Week HERE. The shares are up 74% since this pick.

The Company is exploring for gold in the high profile Rainy River and Red Lake districts of Northwestern Ontario. Its current focus is Rainy River District properties where Bayfield owns 100% of 3 properties adjacent east and west of Rainy River Resources’ (TSXV:RR) significant gold deposits in northwestern Ontario. Its main project, the “Burns” claim block, is surrounded by Rainy River Resources’ property and adjoins the immediate east of Rainy River’s main ODM17 gold Zone.

The company is engaged in a significant 20,000+ meters drill program at its Burns Block property and has been receiving very good drill results. We believe that the proximity to a high profile company like Rainy River and recently obtained excelled drill results by Bayfield is spurring strong interest in the company. This is an interesting company to keep a watch on as its strong continuing exploration programs can result in more short term catalysts for the company.

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