Vancouver — A lack of buyers combined with a wave of sell orders pushed Canada’s junior exchange to record-setting lows over the report period ended Sept. 24. The TSX Venture Exchange composite index plunged 26.89 points, or 2.7%, and closed at 969.32.
A rising gold price prompted investors to pick up shares in American Bonanza Gold Mining. The company has some $2 million in the kitty and plans to advance the Copperstone project in Arizona, which hosts an estimated resource of 1.9 million tonnes grading 18 grams gold per tonne. Stock in the junior closed at 16, up 2 on nearly 2.3 million shares.
JNR Resources failed to get a boost on news that hole 25 had cut 9.1 metres grading 0.62% uranium oxide at the Maverick zone on the Moore Lake project in Saskatchewan. Based on the intercept, the junior is recommending a major drill program to joint-venture partner Kennecott Canada Exploration. JNR closed at 5, down 1 on more than 1.2 million shares.
The week’s star performer was Diamonds North Resources, formerly Major General Resources. Shares soared 29 on news that diamond counts from a 6.49-kg sample collected from its wholly owned Blue Ice project on Victoria Island in Nunavut returned 118 diamonds. In total, 43 diamonds are classified as macros, with seven of these exceeding 1 mm in two dimensions. The newly named company also inked a deal allowing fellow junior Majescor Resources to earn a half-interest in its nearby Wellington property by spending $2.25 million before the end of 2005. Diamonds North ended the week at 64 on 875,000 shares. Majescor finished at 39, up 2 on light volume.
Royal Standard Minerals dropped 2 to close at 22 on 914,000 shares. Over the past six months, the junior has been picking up ground around its wholly owned Pinon-Rain gold project, on the southern end of the prolific Carlin trend in Nevada.
Starfield Resources inched closer to a 52-week low, dropping 7 on the week to close at 36 with 682,000 shares changing hands. Hole 132 at the Ferguson Lake project in Nunavut returned up to 14.1 metres grading 1.5% copper and 0.9% nickel, plus 2.5 grams palladium and 0.5 gram platinum per tonne.
Hunter-Dickinson-led Anooraq Resources recovered from its recent selloff, gaining 9 to close at 63 on 432,000 shares. Investors hammered the stock, following the release of the first batch of assays from its Rietfontein property on the northern limb of the Bushveld complex in South Africa. With 25 holes completed, the latest drill results include hole 7, which cut 89.7 metres grading 0.74 gram combined platinum-palladium, 0.24% nickel and 0.19% copper. Privately owned African Minerals is running the program as part of an earlier agreement to earn a half-stake in the property.
Shares of Silver Standard Resources came crashing back to earth, losing 43 to close at $6.98 on a volume of 140,000. The stock has run up over the past few months on stronger commodity prices and news that drilling is expected to start soon on the company’s half-owned Manantial Espejo silver-gold project in Argentina, as well as its wholly owned Bowdens property in Australia.
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