CDNX posts modest gains

Canada’s junior exchange posted a modest gain as the technology and oil-and-gas sectors helped offset losses in mining. The Canadian Venture Exchange composite index tacked on 40.92 points, or 1.1%, to finish the week ended Sept. 19 at 3,654.28. The mining index slumped 22.47 points, or 0.5%, and closed at 4,852.81.

Philex Gold soared 57 and closed at 70 to finish at a 52-week high on news that Anglo-American, its partner on the North property in the Philippines, had intersected a new gold-rich porphyry at the Boyungan prospect. Hole 6, which bottomed in mineralization, returned 365 metres grading 0.81% copper and 1.9 grams gold per tonne. Stepout drilling is under way in an effort to determine the extent of the mineralization. Anglo-American can earn a 40% stake in the property by spending $2.2 million on exploration over five years.

Pan Asia Mining lost 15 over the week and closed at 30, with 5.6 million shares crossing the floor. The junior has been trading heavily on news that it has inked an agreement with EuroGas to buy a 51% interest in EuroGas-Austria for a total purchase price of $3 million payable over four years. EuroGas-Austria holds a half-interest in the Takt joint venture in the Republic of Sakha, in the eastern part of the Russian Federation. The joint venture is developing proven oil and gas reserves, as well as exploring for new deposits on two large exploration blocks that comprise 2.1 million ha near the city of Lensk.

Investors appeared to be positioning themselves ahead of drill results from the Sarah Lake nickel-sulphide project in Labrador. Major General Resources tacked on a penny to end the week at 20, with 1.47 million shares changing hands. Its partner in the project, Donner Minerals, lost 1 and closed at 13, with 5.2 million shares traded. Major General has launched a 1,800-metre drill program on the property. Situated 90 km south of Inco’s massive Voisey’s Bay deposit, the drill site will be subjected to three holes following the discovery of a gravity geophysical anomaly measuring 1.2 km by 600 metres.

Kalahari Resources traded fast and furious after the junior announced that Toronto-based SouthernEra Resources, its partner on the MacKay Lake diamond project, had started drilling. The 1-hole program is designed to test for the possible northeastern extension of the adjacent Snap Lake kimberlite sill in the Northwest Territories. The junior, which holds a 30% stake, closed at 27, down 3 on trading of 1.2 million shares.

Kensington Resources lost 11 to finish at 59, with 743,000 shares traded. The junior diamond explorer has kicked off a $2.3-million drill program at the Fort la Corne diamond property in Saskatchewan. The junior holds a 38% interest in the property.

Olympus Pacific Minerals lost some ground during the week, shedding 9 to close at 85 on the exchange of 546,100 shares. The junior posted impressive results from the latest round of drilling on the Phuoc Son gold project in central Vietnam. However shareholders are taking profits until drilling resumes in November.