Junior exchange slumps as investors take profits

Vancouver — Canada’s junior exchange took a hit over the week ended Dec. 16 as investors took profits prior to the Christmas holiday. The S&P-TSX Venture Exchange composite index lost 61.78 points, or 3.6% of value, to close at 1,659.11.

American Bonanza Gold Mines lost a penny and closed the week at 37 on a volume of 3.6 million shares. The company has resumed deep drilling at its 95%-owned Gold Bar property in Nevada. Hole 1 was partially drilled earlier this year, when technical difficulties forced it to shut down. To complete the job, a core drill rig has re-entered the hole and is being wedged off.

Spider Resources remained flat at 13 with 2.7 million shares traded. The junior, along with partner KWG Resources, has been working the McFauld’s Lake massive sulphide project in the James Bay lowlands of Ontario. KWG closed at 26, up a penny with 666,400 shares traded.

International Wayside Gold Mines lost 2 and closed at 22 with almost 2.3 million shares changing hands. The company announced that a brokered private placement with First Associates Investments has been increased from 26.7 million to 32 million units at 15 apiece. Proceeds of up to $4.8 million will be used to explore and develop the Cariboo gold project at Wells, B.C.

Majestic Gold tumbled 94 and closed at 54 with 2.4 million shares traded. Assay results from Majestic Gold’s recently completed 4-hole drill program at the Ceske Brezovo prospect in Slovakia failed to return any significant gold mineralization. Majestic was attempting to expand on two near-surface gold zones discovered by the Slovakian government during a regional program in 2000. The program culminated in some shallow drilling that returned intersections of 51.5 grams gold per tonne over 14 metres and 3.1 grams per tonne gold over 16 metres. Both of these holes were reported to be open at depth.

Mandorin Goldfields closed at 15, up a penny, on a volume of 2.4 million shares. The company inked a memorandum of understanding with JEL Project & Construction Management, which holds resource concession rights and legal title to several gold projects in China.

Diadem Resources got a boost from news that the company has engaged Maison Placements Canada to arrange a private placement of up to 7.5 million units priced at 10 each. A unit consists of one share and half a warrant. Each whole warrant will entitle the holder to buy one additional share for two years at 13 for the first year and at 17 for the second. The funds will be applied to the Darnley Bay diamond project in the Northwest Territories and Diadem’s Otish Mountains diamond properties in Quebec. Diadem shareholders recently approved a 1-for-5 consolidation in the junior’s stock. Shares in the junior closed at 11, up 4 on a volume of 2.2 million.

Vedron Gold and partner Northcott Gold have intersected gold in a drilling campaign on their Davidson Tisdale property in Timmins, Ont. Hole 310-03 cut 3.4 metres averaging 341.1 grams per tonne, including a 1.2-metre section of 962.4 grams gold. Vedron stands to earn a half-stake in the property by spending $5 million on exploration and development over five years. Vedron closed up 6, to 38, with 2.1 million shares traded, while Northcott finished the week at 25, up 12 with 568,700 shares traded.