Juniors climb on strong Metal Prices

TSX VENTURE EXCHANGE

Ongoing buoyant metal prices fueled the rally in TSX-Venture board exploration companies. The S&P-TSX Venture Composite Index closed at a new multi-year high of 1994.81 for the period Feb. 23-March. 1, up about 2%, or 38.75 points, over the week. Average daily trading volumes soared beyond 71.5 million shares, the highest activity in over three years.

Gold closed the session at US$431.50 an ounce on the New York spot market, down US$2.70 from the previous report period. Bullion touched a 2-month high at the US$437-per-oz. level. The American dollar largely showed continued weakness but managed a slight rally at week’s end, putting some pressure on the gold price.

Silver gave back some ground after touching multi-month highs, closing off US32 over the period at US$7.17 an ounce on the New York spot market. Platinum was off US$13, closing at US$860 per oz., while palladium gained two dollars, finishing the trading period at US$184 per oz.

Base metals continued to show strength. Although copper gave up a penny, closing at US$1.50 per lb., Asian demand for the red metal is seeing increases. Nickel closed at US$7.23 per lb., up US7 from last week’s quote. Zinc remained strong at the US62-per-pound mark, while lead held near the US44.5-per-lb. level.

Volume leader was Starfield Resources, trading almost 9.2 million shares and gaining 33%, or 15, to close at 61 per share. The company continues to advance its Ferguson Lake copper-nickel-cobalt-platinum-palladium project in Nunavut. Recent drilling intersected high-grade PGM values in gabbro-hosted footwall mineralization, including hole 195, which cut 3 metres of 12.7 grams palladium and 1.5 grams platinum per tonne.

Second on the most-active list was uranium explorer Bell Coast Capital, with almost 8.4-million shares changing hands and continuing its gains, up 19 to close at 70 per share. The company’s focus on its recently acquired 50% interest in the past-producing Sheep Mountain uranium project in Wyoming is garnering attention. With prices recently rising to the US$21.75-per-lb. U3O8 level, the metal is a hot commodity for junior explorers and investors alike.

Third most active was Forest Gate Resources, which saw more than 7.7 million shares cross the floor, to close at 33 per share, up 7 from last week. The company is proceeding with its planned acquisition of the past-producing Caribou and Restigouche base metal mines in New Brunswick from Breakwater Resources. Forest Gate is also exploring its East Side diamond project, near Fort la Corne, Sask., and recently entered into a financing agreement to raise $4 million through a private placement.

Shares of Maple Minerals were up more than 63%, posting a net gain of 59, to close at $1.52 per share on a volume of 7.7 million shares. The company has increased a planned private placement financing to $7.5 million. Maple Minerals recently entered into an option deal to acquire a 50% interest in the Mt. Kakoulima nickel project in Guinea, West Africa, from FNX Mining. Additionally, the company is acquiring Uranium Mineral Ventures, which holds an option on the Ben Lomand uranium property in North Queensland, Australia.