CDNX shows life signs despite summer doldrums

Canada’s junior exchange closed the holiday-shortened period ended Aug. 8 on an upswing with all indices posting gains. The CDNX composite index closed at 3346.81, up 50.71 points, or 1.5%, and the mining index followed suit, jumping 138.17 points, or 3.2%, to close at 4433.78.

Pan Asia Mining was this week’s volume leader, with 1 million shares crossing the floor. The junior ended the week flat, at 13, despite having announced a $3-million financing aimed at increasing production to more than 250,000 carats per year at the 701 diamond mine in China. According to the company, the mine cranks out 100,000-150,000 carats per year.

Cantex Development lost 3 to close at 47 with 808,000 shares traded. The junior announced that Toronto-listed Falconbridge is surveying a 200-line km grid over the Suwar ultramafic complex in Yemen. The major plans to complete a ground electromagnetic survey over the grid so that structural geologic mapping and drilling can begin in October or November 2000. Falco stands to earn a 60% working interest in the Suwar mining lease by funding all exploration and development costs.

Montello Resources tacked on 3 to close at 25, with 689,000 shares crossing the floor. The company recently kicked off a 2,840-metre test well on its Sturgeon Lake property in Alberta. The well will target a massive Devonian Leduc pinnacle reef feature identified on the shelf break of the Leduc platform. Montello has farmed out a half-interest in the property to a private Alberta company, which will pay all drilling costs.

Gallery Resources lost 3 over the week, with 600,000 shares traded. Last month, the company acquired some new ground in Newfoundland, where boulder-sampling has revealed high-grade mineralization containing up to 25% combined zinc-copper-lead mineralization. Assays also returned precious metals mineralization ranging up to 2.2 grams gold and 62.2 grams silver per tonne. Gallery is also in the midst of diamond drilling at its Cabot Lake South property in central Labrador. At last report, the first two holes of the 12-hole program intersected massive sulphide mineralization. Assays are pending.

Peruvian Gold rocketed 47 and closed at $1.23. The company has signed a letter of agreement with Patriot Computer for a business merger and re-organization. Ontario-based and privately owned, Patriot designs, manufactures and markets high-quality, franchise-branded computer systems and educational tools for children and families, including the Barbie PC and Hot Wheels PC. Peruvian shareholders will receive one share of Patriot for each 3.25 shares surrendered.

Pacific North West Capital tacked on 15 and closed at $1.40. The company has completed a second phase of drilling on the River Valley project, 65 km northeast of Sudbury, Ont. Assays are pending. The property is being explored for its copper, nickel and platinum group metals potential.

Olympus Pacific Minerals found a dime and closed at 90. The junior is exploring its Phuoc Son gold project in Vietnam. Recent results include 7 metres grading 10.62 grams gold and 27.8 grams silver per tonne and 5 metres of 13.88 grams gold and 10.1 grams silver.