Junior board steams ahead on strong metals prices

Investors continued to drive junior resource stocks upward on soaring precious and base metals prices. The S&P-TSX Venture Composite Index closed out the Jan. 10-16 trading session at 2,394.54, up 82.06 points or 3.5% over the week, to reach a more than 10-year peak on an adjusted basis. Average daily trading volumes on the session were a strong 68.5 million shares.

The bull market continued to run hard with 146 companies surging to new 52-week highs over the week, overwhelming the meagre 14 junior explorers that dropped to new annual lows.

Top volume honours went to Skyharbour Resources with 19.7 million shares changing hands and gaining 7, or 78%, to close at 16 per share. The company has started drilling on its 20%-owned McKenzie Island gold project located near Red Lake in northwestern Ontario. The project is 80%-held by sister company Cypress Development, which was the second most-active trader with 17.5 million shares, up 16.5, over 100%, to close at 32.5 per share. The duo is targeting geophysical anomalies that indicate a structural setting prospective for gold mineralization.

Bravo Venture Group grabbed third place, trading 13.9 million shares to end up 93, or almost 120% higher at $1.71 per share. The Nevada-focused junior recently resumed drilling on its South Lone Mountain project located in the Battle Mountain-Eureka trend. Recent drilling has successfully intersected the favourable Roberts Mountain Formation lithologies in one hole. Interest in the project was triggered when testing of past oil well cuttings indicated gold-mineralized Roberts Mountain Formation rocks. Placer Dome is funding the drill program and can earn up to a 70% interest in the project.

Beaufield Consolidated Resources traded almost 11 million shares, surging 30, or 55%, to close at 85 per share. Goldcorp announced plans to purchase 6.8 million units of the company at 50 apiece. The $3.4-million private placement will give the major a 9.9% stake in Beaufield, which holds the Opinaca property adjacent to Virginia Gold Mines‘ lonore gold deposit in Quebec’s James Bay region. Goldcorp is acquiring Virginia in a stock deal valued at about $500 million.

Peru-focused junior Plexmar Resources saw its share price double on the week to 14 with volume of over 9.4 million shares. Work continues at its Bolsa del Diablo gold project in northern Peru.

Pacific Ridge Exploration continued its gains, closing the week up 47% at 25 per share on volume of almost 8.6 million shares. Drilling is planned on its Fyre Lake copper-cobalt-gold project in the Yukon. Further, Newmont Mining will be drilling on its Matrix gold project in Nunavut, a joint venture with newly listed Kaminak Gold.

Shares of Redstar Gold surged 73% on volume of almost 7.4 million shares, closing up 13.5 at 32. The company recently lined up a small financing and plans follow-up work on high-grade samples at its Newman Todd gold project in the Red Lake area.

Wide gold values from its La India project in Sonora state, Mexico, pushed shares of Grayd Resource up by 28%, or 29, to $1.32 on volume of 7.2 million. Drilling returned an 85.3-metre interval averaging 2.6 grams gold per tonne in a new zone. Newmont is earning up to a 70% interest in the project.

Yukon Zinc continued to perform well, edging up a penny to 44 per share on volume of almost 6.8 million. A measured and indicated resource estimate released on its Wolverine zinc-copper-lead deposit, in the eastern Yukon, reviews 4.5 million tonnes of 12% zinc, 351.5 grams silver per tonne, 1.15% copper, 1.7 grams gold and 1.57% lead.