Mining index leads charge in CDNX rally

Vancouver — Canada’s junior exchange rallied strongly over the week ended May 1, led by a triple-digit gain in the mining index. The Canadian Ventures Exchange composite index tacked on 41.94 points, or 1.4%, to finish the week at 3,078.68. The mining index surged ahead 238.26 points, or 3.8%, to close at 6,381.04.

Brasilca Mining was the week’s most active resource trader. The junior ended the period at 20, up 4 on a volume of 3 million shares. Investors acted on the announcement that Teck and Inco have teamed up to explore Brasilca’s Tucum iron oxide-copper-gold concession in Brazil.

Montello Resources climbed 4 to 11, with 1.8 million shares crossing the floor. Driving the heavy volume was news that the company can earn a 66.6% interest in certain gas leases in eastern Tennessee. The junior also holds a stake in the Legend diamond property in Alberta. Recent tests on the Kendu pipe failed to show any diamonds.

Kensington Resources tacked on 21 and closed the week at 68, with 1.7 million shares traded. Shares in the company have surged on the back of modelled diamond values and revenue calculations for the Fort La Corne diamond play in Saskatchewan.

Conquistador Mines remained flat at 5, with just under 1.3 million shares changing hands. The company has been trading near a 52-week low since AngloGold announced it would stop exploring the junior’s regional gold project in Colombia.

Tyler Resources jumped 12 and closed at 23 on a 1.2-million-share volume. Its joint-venture partner, Diamondex Resources, reported a kimberlite pipe discovery on the Carat property, some 350 km northeast of Yellowknife, N.W.T. Diamondex ended the week at $1.83, up 10.

Pallaum Minerals added 1 to its value and closed at 33 on an exchange of 991,000 shares. The CDNX has accepted the company’s recent shares-for-debt proposal whereby Pallaum would issue 387,056 shares to settle a $96,764 debt with junior Donner Minerals.

Pan Asia Mining ended the week flat at 7 with 817,000 shares changing hands. The junior is upgrading the 701 diamond mine in China, from which 2,111 carats of rough stones have been recovered.

Philex Gold traded in a broad range before ending the week flat at $1.59 on 896,000 shares. The junior’s share price recently surged following the release of more impressive intercepts from the Boyongan copper-gold prospect in the Philippines.

Kalahari Resources lost a penny and closed at 10, with 806,000 shares traded. The junior will conduct a gravity survey at its San Juan project in New Mexico, as part of its search for a potential north-east extension of the Silver Bell-Morenci copper belt. Drilling is expected to commence in June. Additional prospecting, mapping and sampling are planned for the Villebon VMS project in Val D’or, Que., and drilling may resume in July.