Junior exchange rallies to new high

Vancouver — Canada’s junior exchange surged to a new all-time high over the week ended Oct. 14. The S&P-TSX Venture Exchange composite index rocketed 36.64 points, or 2.6%, to close at 1,429.89.

Spider Resources added 7 to its value and finished the week at 17 with 12.5 million shares traded. The junior, along with partner KWG Resources, has resumed drilling on the McFauld’s Lake massive sulphide project in the James Bay Lowlands of Ontario. At last report, six new electromagnetic anomalies had been delineated by the AEM survey in the immediate vicinity of the McFauld’s occurrence. KWG closed at 31, up 17 with almost 4.5 million shares traded.

Sparton Resources jumped 21 and closed at 75 with 9.7 million shares traded. The junior reported that kimberlite indicator minerals have been found in till samples taken from its wholly owned property in the Otish mountains of northern Quebec. Following the news, the junior agreed to sell 2 million special warrants at 43 per unit. Each special warrant holds one share and one warrant. The warrants are exercisable at 54 for two years.

Pacific Ridge Resources closed up 3, to 18, with 6.4 million shares traded. At last report, the junior was completing deposit modeling and selecting drill targets for a second bout of drilling on its Golden Arrow gold project near Tonopah, Nev.

Inca Pacific Resources closed flat at 15 with 5.8 million shares changing hands. The first hole drilled into the Antoro Sur project in central Peru returned 38.3 metres grading 1% copper and 0.33 gram gold per tonne. So far, 12 holes have been completed in a program that’s expected to span 19 holes and 2,000 metres. Results for the remaining holes are pending.

OntZinc closed at 34, up 9 on 4.7 million shares. The company recently announced that St. Lawrence Zinc has completed its purchase of the Balmat mine in St. Lawrence Cty., N.Y. The purchase price of US$20 million is payable out of 30% of net cash flow from operations after allowing for reasonable capital and exploration expenditures. The company currently owns 49% of St. Lawrence Zinc and stands to earn up to 100% by paying US$3 million to privately held Frame Mining.

Dumont Nickel finished the week up 8, to 31, with almost 4 million shares traded. Rosseau Limited Partnership (RLP) acquired 6.25 million units of Dumont Nickel priced at 16 apiece. A unit consists of one share and half a share purchase warrant. Each warrant entitles RLP to buy one additional share at 24 over 24 months. If the warrants are exercised, RLP will hold a 15.74% equity interest in Dumont.

After releasing promising results from the first seven holes on the Del Norte property, 30 km east of Stewart, B.C., Lateegra Resources tacked on 6 and closed at 37, with 3.6 million shares changing hands. The best results include 0.31 oz. gold and 16.5 oz. silver per tonne over 7.8 ft. in hole 1.

Mandorin Goldfields closed up 6, to 11, on a volume of 3.4 million shares. CanAustra Holdings, a shareholder and lender to Mandorin, has offered to convert $800,000 of its $1.1-million loan to equity. Mandorin has entered into an agreement with UniQuest for rights to use the KDC Endeavour technique.