Flat gold casts pall over juniors

The TSX Venture Exchange took a hit during the report period June 2-8, losing nearly 33 points to close at 1571.25. The price of gold has been unsure which way to go and ended the period at US$391 per oz. in New York, down from US$394 per oz. in the previous period. The price of silver began the week at the US$6-per-oz. level but slipped to US$5.75 at the close.

Gold has remained flat, and for two reasons: the U.S. dollar has lost some ground against the euro, and there are fears that interest rates will rise in the U.S. in the near term.

Topping the most-active list were EuroZinc Mining, OntZinc, American Bonanza, Uruguay Mineral Exploration, and Muskox Minerals.

EuroZinc Mining made the top 10 list of volume-leaders with more than 7.7 million shares changing hands; the share price dropped 5 to close at 56. The company is acquiring the Neves Corvo operation in Portugal, which allows it to join the ranks of mid-tier base metal miners at a time when base metal prices are generally strong. The company was recently accepted for a listing on the TSX.

OntZinc tacked on 3 to close at 11 — a 37% increase. The company closed its equity financing for gross proceeds of $5.6 million through the issuance of 31 million shares.

American Bonanza Gold Mining was an active trader, with 2.8 million shares changing hands, but closed even for the trading period at 18 apiece. The company intersected 3.3 metres grading 48 grams gold per tonne on its Copperstone property in Arizona and is moving a fourth drill rig to the site.

Trading 1.7 million shares was Uruguay Minerals, which tacked on a healthy 89 to close at $3.70, topping the list of value leaders. A technical report confirmed the company’s initial consolidated resource estimate, which was announced in early March.

Muskox Minerals was up a penny after trading 1.3 million shares during the period. The company reported drill results from its Yellow Jacket gold-silver property, near Atlin, B.C.

Beaufield Consolidated gained a hefty 56% to close at 25. The company has an option to earn a half-interest in all of Noranda’s properties in the Troilus belt in Quebec by spending $2 million by Dec. 1, 2006. Noranda, in turn, can acquire a half-stake in all of Beaufield’s properties in the same area.

Vancouver-based Anooraq Resources was one of the top value-gainers on rumours of drill results from a platinum project in Africa. The shares added 30 to close at $2.65.

Shares in GGL Diamond rose 39%, to close at 32, after an airborne geophysical survey pointed to the presence of a kimberlite pipe at the Fishback property in the Northwest Territories. Previous work in the area, near Awry Lake, revealed kimberlite indicator minerals and granite breccia boulders containing kimberlitic indicator minerals. Core drilling is planned.

Vancouver-based Lakota Resources, which is active in Tanzania, released an exploration update. Its shares lost 30% to close at $1.