Resource-sector deals drive junior exchange

Vancouver — Canada’s junior exchange finished the week ended Sept. 30 with a modest gain, compared with previous weeks. The S&P-TSX Venture Exchange composite index finished the period up 3.53 points, or 0.25%, and closed at 1,393.15.

ECU Silver Mining continued to trade heavily, tacking on 6 and finishing the week at 15 with nearly 13 million shares traded. The stock resumed trading Aug. 8 after a cease-trading order was lifted. The original vendors have challenged ECU’s ownership (through a subsidiary) of the mining properties in the Velardena area of Mexico. The dispute has resulted in a production shortfall: only 2,606 tonnes were milled between March 24 and May 4 instead of the 5,000 tonnes planned. The average grades for that period were 6.15 grams gold and 299 grams silver, with recoveries of 75% for gold and 38% for silver.

Afcan Mining jumped 8 and closed at 43 on 10.8 million shares traded. The junior doubled the amount of a recent financing to $10 million. The 40 million units are priced at 25 each. A unit holds one share and half a warrant. A full warrant is exercisable at 37 for two years. Proceeds are earmarked for drilling on the TJS gold project in China.

Northern Dynasty Minerals reported encouraging results from drilling at its Pebble gold-copper-molybdenum deposit in Alaska. One of the holes collared outside the western boundary of the deposit cut 46.5 metres grading 0.92% copper-equivalent. Shares in the Hunter-Dickinson-led company gained 35 to close at $3.03 with 2.5 million shares traded.

New Guinea Gold closed at 26, down 5 with 2.3 million shares traded. The junior closed its previously announced short-form offering of up to 11 million units for gross proceeds of $1.2 million. Each unit will consist of a share and half a non-transferable warrant; a whole warrant will be exercisable into an additional share for one year from closing at an exercise price of 12. The money will be used to revise the feasibility study of the Sinivit gold project in Papua New Guinea, and to finance studies of the Imwauna and Weioko projects.

Inca Pacific Resources closed the week up 2, to 12, with 2.3 million shares changing hands. The company completed a financing for gross proceeds of $1 million. Ten million units priced at 10 each were sold. A unit consists of one share and one transferable share purchase warrant; each share purchase warrant can be redeemed for one additional share until Sept. 19, 2005, at a price of 15 per share. Canaccord Capital Corp. acted as agent for the financing. The money will be used to finance drilling on the Antoro Sur gold property in Peru, and to repay a $100,000 bridge financing and underlying property option payments.

Spartan Resources added 3 to its value and closed at 50 with 2.3 million shares traded. The company announced it will sell 3 million special warrants priced at 40 per warrant for gross proceeds of $1.2 million. Each special warrant can be converted into one share and one full-share purchase warrant. The warrants will be exercisable for two years from the date of closing of the private placement at a price of 48 per share. Spartan will use the funds to augment working capital. The company holds ground in the Otish Mountain diamond play in Quebec and recently acquired a stake in a project in the Luxi gold belt in China.

Boulder Mining closed at 38, up 7 on 2.2 million shares traded. The company has kicked off a 3,000-metre reverse-circulation drilling program at the Tevrede copper-gold project, which covers 190 sq. km in northwestern Namibia.

Bishop Resources found a penny and closed at 20 with 2.2 million shares crossing the floor. The junior has tabled some eyebrow-raising results from its drill program at the AL property in the Toodoggone area of north-central British Columbia.

Apac Minerals tacked on 34 after announcing it had inked a deal with Team 105 of the Guizhou Bureau of Geology and Mineral Resources to enter into a joint venture on the Lianhua gold project in southern China. Apac ended the week at $1.30 with 2.19 million shares traded.