Indices in red as CDNX sings October blues

Canada’s junior exchange continued to lose ground during the 7-day report period ended Oct. 17, as all indices ended the trading session solidly in the red. The Canadian Venture Exchange (CDNX) composite index dropped 137.74 points, or 4%, to finish the period at 3,275.82. The mining index plunged 189.27 points, or 3.9%, to close at 4,652.39.

The CDNX completed equity financings worth $1.96 billion during the first nine months of the year. Technology companies accounted for 57% ($1.1 billion) of the total financings, while the resource sector accounted for 15% ($293 million); oil and gas companies accounted for 8% ($153 million).

Pan Asia Mining was the week’s heavy trader, with 1.7 million shares changing hands. The junior lost 5 and closed at 15. The company recently announced that the conversion of the 701 diamond mine in China from an open-pit operation to an underground mine is on-schedule and within budget. According to the company, 2,700 carats of diamonds were produced from 3,600 tonnes of stockpiled ore during September.

New Blue Ribbon Resources lost 3 and closed at 16, with 856,000 shares traded. The junior recently announced that the exchange has accepted its option agreement detailing its 60% stake in the 1-million-acre Legend diamond property, in northeastern Alberta, from Montello Resources and Redwood Resources. At last report, New Blue Ribbon had identified several discrete targets some distance from the main kimberlite cluster and was performing further geophysical surveys to identify drill targets. Montello closed the week at 17, down 2 on 654,000 shares, while Redwood closed at $1.50, down 15, on 111,400 shares.

International Wayside Gold Mines released more results from its Bonanza Ledge discovery at its Cariboo gold project, near Wells, B.C. Highlights from hole 33 include: two intervals of gold mineralization grading 7.6 grams gold per tonne over 6.5 metres and 11.56 grams gold over 5 metres.

Cantex Mine Development ended the week down 2 at 27, with 724,000 shares crossing the floor. The Charles Fipke-led company announced that geological mapping and the analysis of 287 soil samples over the Sadah gold prospect in Yemen have been completed. More than 125 of the soil samples returned anomalous gold values.

A nice percentage-gainer, Rhonda, formerly Rhonda Mining, tacked on 11 to end the week at $1.11, with 524,000 shares changing hands. Earlier this month, stock in the junior explorer surged to a 52-week high of $1.38 on news that the Knife kimberlite pipe in Nunavut has been found to contain macrodiamonds. A 75-kg sample yielded 98 diamonds, including six macrodiamonds. De Beers Consolidated Mines can earn a 70% interest in the Knife pipe property by spending $10 million and carrying Rhonda to production.

Rock Resource hit a 52-week low, ending the week at 6, down 2 on 609,000 shares. Stock in the company headed south following disappointing drill results from the Coiron copper-gold property in Chile. The junior recently announced that a technical geological report has been sent to 11 international mining companies.

DRC Resources tacked on 50 to close at $14, with 519,000 shares traded. The company is currently drilling its Afton Mine property, near Kamloops, B.C., and has established the presence of a hypogene copper zone beneath the floor of the existing open pit. Preliminary tonnage estimates of the resource weigh in at 25 million tons averaging 2.5% copper.

Kalahari Resources lost 4 to close at 22 on 519,000 shares. Investors are awaiting drill results from the Caprock-Northside-Milligan-Sheep and San Juan copper porphyry claims in New Mexico, as well as the Mackay Lake diamond claims in the Northwest Territories.

Philex Gold appears to have settled a bit, as shares in the company closed at $1.36, down 6. Investors await further news from the Boyungan copper-gold prospect in the Philippines. Stock in the junior was trading at 13 before the company announced that hole 6 had cut 365 metres grading 0.81% copper and 1.9 grams gold per tonne. The next results are expected near the end of October.