CDNX loses momentum owing to technology sell-off

Canada’s junior exchange finished the trading week ended Sept. 12 flat, with losses in the technology index offset by gains in the mining and oil and gas sectors. This is a reversal of the trend at the start of the year, when high-flying tech stocks had resource stocks eating their dust.

The Canadian Venture Exchange composite index added 0.92 point to its value to close at 3,613.36. The mining index showed more life, tacking on 91.43 points, or 1.9%, to finish at 4,875.28.

International Wayside Gold Mines added 3 to its value and closed at 67 with 2.1 million shares crossing the floor. The Frank Callaghan-led company announced more assay results from an ongoing drill program at the Bonanza Ledge gold discovery near Wells, B.C. Among the highlights was hole 32, which cut an impressive 7 metres grading 3.2 grams gold per tonne, starting at 35.7 metres down-hole, and 45.1 metres of 11.2 grams gold from 60 metres down-hole. Included in this series of stacked mineralized zones are localized bonanza-grade lenses returning up to 39.4 grams gold over 3.4 metres.

Kalahari Resources traded heavily over the week, but closed flat at 30 as 1.2 million shares changed hands. Toronto-based SouthernEra Resources, the company’s partner on the MacKay Lake diamond project, announced that drilling has begun on the property. The 1-hole program is designed to test for the possible northeastern extension of the adjacent Snap Lake kimberlite being advanced by Winspear Diamond (now controlled by De Beers Canada). Kalahari holds a 30% stake in the Northwest Territories property.

International Bravo Resource traded heavily after announcing that a limited drilling at its East Divide gold property in Alaska had returned only anomalous gold values. The program was designed to intersect projected depth extensions of previously discovered gold-bearing, sheeted quartz-vein occurrences. The company’s shares closed down a penny at 16, with 1 million shares crossing the floor.

Rhonda, formerly Rhonda Mining, tacked on 19 to close at 74 on trading of 988,000 shares. The junior says partner De Beers is encouraged by the size of the Knife Pipe, a discovery on a Rhonda claim situated 75 km south of Coronation Gulf in Nunavut. Drilling has taken place and cores have been sent to South Africa for microdiamond analysis. De Beers can earn a 70% interest by spending $10 million on the property.

Major General Resources jumped 4 and closed at 19 with 800,000 shares traded. The company has started a 3-hole, 1,800-metre drill program on its Sarah Lake claims in Labrador. The claims are part of the South Voisey’s Bay nickel project situated 90 km south of Inco’s Voisey’s Bay nickel deposit. The company has also initiated electromagnetic and gravity surveys on its wholly owned Satellite property just west of Sara Lake.

Olympus Pacific Minerals surged 16 to end the week at 94, with 988,000 shares crossing the floor. At the Phuoc Son gold property in Vietnam, hole 45 intersected 9.15 metres grading 34.35 grams gold and 98.96 grams silver per tonne, plus 7.41% lead and 0.22% zinc.