Junior miners continue to post gains

Once again, robust commodity prices and investor appetite buoyed the resource market over the Jan. 24-30 trading session. The S&P-TSX Venture Composite Index closed the week at 2,547.72, up 88.17 points or 3.6%, continuing its march to a more than 15-year high on an adjusted basis. Average daily trading volumes also rallied over the session touching a new multi-year high of 86 million shares.

The bullish trend had 139 junior explorers rising to new 52-week highs over the week, while only 15 dropped to new annual lows.

Volume leader for the week was Plexmar Resources, which gained 68% or 8.5 to close at 21 per share on 12.1 million shares. Exploration continues at its Bolsa del Diablo-Las Lomas gold project in northwestern Peru and the company recently completed a $1.25-million financing.

With its Quebc Securities Commission cease-trade order now revoked, Searchgold Resources traded 8.7 million shares, up 80% or 6 to close at 13.5 per share. The company has started drill programs on its Lac Chevrier and Lac Fortune West gold projects in northwestern Quebec. Work by a joint-venture partner has also begun on its Bakoudou-Magnima gold project in Gabon, western Africa.

Junior silver producer Excellon Resources traded over 8.2 million shares over the session, up 14 or 39% to close at 49.5 per share. Recent drilling on its Platosa project, in northeastern Durango state, Mexico, returned a 9.4-metre massive sulphide intercept averaging 1,516 grams silver per tonne, 16.4% lead and 15.2% zinc. The hole was drilled outside of the area containing the project’s indicated resource and is similar to the ore material currently being mined.

Century Mining had 8.2 million shares change hands, trading up 25% or 9.5 to close at 48 per share. The company’s Sigma-Lamaque mine, at Val d’Or, Que., continues to produce gold since restarting commercial operations in mid-2005.

Nevada-focused gold and silver explorer Northern Abitibi Mining traded almost 8 million shares on the week, shedding four pennies or 27% to close at 11 per share. A recent 8-hole reverse-circulation drill program on its Silver Park project cut a number of anomalous gold-silver intercepts.

Yukon Zinc remained a strong trader, gaining 4.5 to close at 42.5 on volume of 7.7 million shares. The prospective base metal developer recently locked down a financing agreement for its Wolverine zinc-copper-lead deposit in the eastern Yukon.

Northwestern Mineral Ventures saw volume of over 7.5 million shares, notching up a penny to close at 88 per share. A recently completed airborne survey on the Waterbury uranium project, under option from CanAlaska Ventures and located in the Athabasca basin, is being followed up by a ground survey to develop drill targets. In addition, permitting is under way to allow underground entry at its past-producing Firefly uranium-vanadium mine in southeastern Utah.