Juniors get nickel-and-dimed on Venture board

TSX VENTURE EXCHANGE

Vancouver — Junior companies exploring for precious and base metals took a back seat to companies involved in coal, uranium, and energy-related ventures over the report period Oct. 18-24. Strong metal prices weren’t enough to lure investors away from their bargain-hunting spree in other sectors of the resource economy, notably energy. Mineral exploration companies paid the price by shedding nickels and dimes, while the S&P-TSX Venture Composite Index lost 56.28 points to close at 2,006.87 over the session.

Solitaire Minerals was the most active trader again this week, but lost 25% of its recent gains to close at 10. The junior recently acquired Alberta permits prospective for roll-front type uranium mineralization.

Also benefiting from increased investor interest in uranium is Strateco Resources, which gained a few pennies to 13, based on recently acquired uranium properties in Quebec’s Otish Mountains.

Lal Gondi’s Ivana Ventures trumped other resource stocks this week to take top spot as the biggest value gainer, up 88.7 to $1.51. The company arranged a private placement that is expected to raise $12 million for “property expenditures, property investigation and acquisition,” and general working capital. Ivana is involved in a joint venture with a local partner at a coal project in China’s Xinjiang Autonomous Region. An independent resource estimate for the Qidowan coal property is under way. The joint venture also intends to explore for and develop coal-bed methane gas in the industrialized region.

Verona Development was the largest percentage gainer, up 57 at $1.15 after announcing it had signed a letter-of-intent agreement to explore, develop, and exploit coal-bed methane projects in China’s Henan province. The junior is negotiating the terms of a formal agreement with a local partner.

While still making the most-active list, Minera Andes shed a dime to close at 42. The junior released details of a positive feasibility study for the San Jos gold-silver project in Argentina. A proposed 750-tonne-per-day underground mine is expected to produce about 61,000 oz. gold and 3.1 million oz. silver annually over a 4.3-year mine life. The junior has a 49% interest in the project, with operator Mauricio Hochschild holding the balance.

Saskatchewan diamond company Kensington Resources got a boost of 51 to close at $4.51 after its shareholders voted overwhelmingly to approve its proposed merger with Shore Gold. The transaction combines assets both companies hold in the Fort la Corne district.

Seabridge Gold went the other way and shed 76 to close at $6.07. The company, which has a large portfolio of gold and gold-copper projects, recently announced a modest increase in gold resources at the Courageous Lake project, 240 km northeast of Yellowknife, N.W.T. While the mineralization is refractory and the project is remote, a recent study suggests gold can be produced at cash costs averaging US$279 per oz.

African Gold gained 25 to close at $1.55 over the trading session. The junior arranged a private placement to fund ongoing work at its gold projects in Africa, notably the Kobada concession in Mali, where previous exploration has generated encouraging results that warrant follow-up work programs.