Buoyant bullion drives strong junior market

The heavily junior-weighted S&P-TSX Venture Exchange continued its upward march over the Dec. 6-12 report period, propelled by an almost 25-year high in the price of gold at US$540 per oz, while spot copper touched an all-time high of US$2.10 per lb. The Composite Index rallied 2.5%, or 51.56 points, over the session, to close at 2,140.37. Average daily trading volumes jumped to 58.6 million shares over the week.

The weekly count of new highs versus lows improved slightly on its previous bearish trend, with 63 companies seeing new 52-week highs while 107 sank to annual lows.

Top trader for the week was Nevada Pacific Gold, which gained 26%, or 16 per share, to close at 77 on volume of over 6.1 million shares. Former Goldcorp chairman Robert McEwen will hold 18.2% of the company through a planned $5-million investment, acquiring 12.5 million units at 40 apiece. McEwen can boost his ownership to 30.8% upon exercise of all warrants. Nevada Pacific holds the recently suspended Magistral gold mine in Mexico, and a portfolio of exploration projects in Nevada’s two main gold belts, several of which are under option to Placer Dome.

Another company targeted for investment by McEwen, Coral Gold, soared over 133%, or $2.33 per share, to close at $4.08 on volume of almost 400,000. The Goldcorp founder plans to take down up to 1.25 million shares at $3.00 apiece to hold just under 20% of the Nevada gold explorer, and assume its helm as executive chairman.

Investors traded over 4.9 million shares of Cypress Development to place the company in second slot amongst most actives, closing down 1.5 at 14.5 per share. The company is exploring its McKenzie Island gold project in northwestern Ontario’s Red Lake camp.

Beartooth Platinum saw volume of almost 4.3 million shares over the week, notching a 3 gain to close at 13 per share. The explorer is planning its 2006 drill program at its Stillwater Complex area project in southern Montana and recently announced a planned $1-million financing.

Beaufield Consolidated Resources traded almost 3.5 million shares, shedding a penny to close at 34 per share. The company holds the ground adjacent to Virginia Gold Mines’ lonore gold project in Quebec’s James Bay region. Goldcorp recently tabled its plan to acquire Virginia in a stock deal valued at about $500 million.

Uranium-focused junior Hornby Bay Exploration saw volume of over 3.2 million shares, dropping 4 to close out the week at 33 per share. The company has tabled plans for a number of drill targets next year.

Over 2.8 million shares of Apogee Minerals changed hands over the trading session, up 1 at 54 per share. The company is advancing its silver-lead-zinc projects in Bolivia.

Grayd Resources saw its trading volume ramp up to 2.7 million, gaining 38%, or 11.5, to close at 41.5 per share. Drilling recently began on its La India gold project in Sonora state, Mexico, under option to Newmont Mining.

Fledgling silver producer Excellon Resources traded volume of 2.6 million shares over the week, closing off a penny at 21 apiece. Its Platosa mine in Durango state, Mexico, is now in production.

Shares of Corex Gold plummeted almost 55% over the week, closing at 19 per share on volume of 935,000. Initial drill results from its El Trebol project in Zacatecas state, Mexico failed to return economic gold grades.

The meteoric rise in Laramide Resources succumbed to some profit taking and closed down $1.08 per share at $5.75 on volume of almost 800,000. The company holds the Westmoreland copper-gold-uranium property in Queensland, Australia and recently acquired a number of uranium projects in Colorado, New Mexico and Utah.