Junior market continues bull run

Vancouver — Canada’s junior exchange continued its fall rally over the week ended Oct. 28. The S&P-TSX Venture Exchange composite index surged 36.80 points, or 2.51%, and closed at 1,498.55.

Shares in American Bonanza Gold Mines continued to rise after fund manager John Embry of Sprott Asset Management selected the junior as one of his top picks in the gold sector. The company is drilling the Copperstone gold project in Arizona, as well as the Big Bar project in Nevada. The company ended the week at 40.5, up 3.5, with almost 12 million shares traded.

Investors bought into uranium explorer JNR Resources, which holds exploration ground in the Athabasca Basin area of Saskatchewan. Shares in JNR ended the week at 9.5, up 3.5 on a volume of 6.8 million.

Strongbow Resources closed up 17, at 67, with 3.9 million shares traded. The company recently staked 800 sq. km of ground adjoining Committee Bay Resources’ property in Nunavut’s Committee Bay greenstone belt.

Pacific Minerals rocketed $1.26 and closed at $2.84 with 4.2 million shares changing hands. A newly restructured deal will allow the junior to retain at least half of its flagship Chinese projects. Toronto-listed Ivanhoe Mines has elected to reduce its maximum earn-in rights for the 217 and Dangong gold projects, as well as the JBS platinum-palladium project, to 50% from the previous 80%. The company has also agreed to transfer to Pacific Minerals half of its interest in the Shuteen exploration licence in southern Mongolia. The 93-sq. km property is 100 km east of Kharmagtai. Ivanhoe acquired the right to earn an 80% interest in Shuteen in early 2002 by agreeing to spend US$1.5 million to the end of 2004. So far, Ivanhoe has spent US$1.4 million on the project. In return, Pacific Minerals will issue Ivanhoe 2.5 million shares.

Dumont Nickel finished the week up 7, to 37, with 3.49 million shares traded. At last report, 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. A 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.

Knight Resources tacked on 13 and closed at 75 with 3.2 million shares traded. Investors are anticipating more drill results from the company’s West Raglan project in Nunavut. Knight is earning a 49% interest in the nickel-copper-cobalt-PGM project from Anglo American.

Sparton Resources lost 13 and closed at 71 with just over 3 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. Sparton will grant an aggregate of 200,000 options to directors, officers and consultants of the company. The options are exercisable at 72 and expire on Oct. 24, 2008.

Amerigo Resources remained steady at $1.60 with just over 3 million shares traded. Investors recently bid up the stock after the junior reported net earnings after tax of US$537,313 during its second quarter. That is up from a loss of US$45,384 in the year-earlier quarter. In July, the company acquired the Chilean MVC copper property, and in July and August, Amerigo produced and sold 4.7 million lbs. copper at a cash cost of US59 and a total cost of US62 per lb.

Anooraq Resources jumped 32 and closed at $1.67 with 2.8 million shares crossing the floor. The Hunter-Dickinson-led company is working the Platreef platinum-palladium project in South Africa.

Tagish Lake Gold found a penny and closed at 37 on a volume of 2.8 million shares. The company encountered mineralization in the 1300 Ridge Access Drift sooner than expected. A chip sample taken from the face of the drift returned 10.56 grams gold and 214 grams silver per tonne over a 0.4-metre width at the junior’s Skukum property, situated 80 km south of Whitehorse.