Red Lake gold plays attract interest

Vancouver — Despite a strong showing in gold-related stocks, Canada’s junior exchange drifted lower over the report period ended June 25. The Canadian Venture Exchange composite index dropped 7.21 points, or 0.6%, to finish the week at 1183.35.

American Bonanza Gold Mining was the most actively traded junior explorer, gaining 2 to close at 20 on just under 5.6 million shares. With $2 million in the kitty, the company intends to advance the Copperstone gold project in Arizona, which hosts an estimated total resource of 2.1 million tons grading 0.58 oz. gold per ton.

International Wayside Gold Mines failed to hold on to recent gains, losing 3 to close at 16 on a volume of 1.8 million shares. Stock in the Frank Callaghan-led junior had rallied over the past few weeks following the latest drill results from the Bonanza ledge discovery area, near Wells, B.C. The ongoing drill program is testing the northwestern extension of the BC vein system and so far has cut up to 22.97 grams gold over 15.5 metres.

Pacific Minerals closed at $1.35, up 17, on 1.6 million shares. The junior announced that Toronto-listed Ivanhoe Mines has invested US$3 million in the junior by way of a private placement. A total of US$2 million will be used to advance the JBS platinum-palladium property and the 217 gold project, both of which are in China.

Shares in National Gold surged to a new 52-week high before settling back to close at 69, up 18 on a volume of 1.4 million shares. In order to meet financial obligations on its Salamandra gold property in Mexico, the Albert Matter-led company has raised $1.5 million. Under a deal with Placer Dome, National Gold must pay $1 million by Aug. 23 plus make another, $1.7-million payment by Sept. 23. The junior and its joint-venture partner, Alamos Minerals, have set their sights on developing the higher-grade core of the deposit, dubbed Estrella, and will share the property payments equally. Alamos added 6 to 87 on low volume.

Glenhaven Ventures dropped 2 to close at 34 on 1.3 million shares. The junior has added the Springpole gold property in the Birch Ichi greenstone belt to its portfolio of projects near Red Lake, Ont. To reflect, more accurately, its property assets, shareholders voted to change the company’s name to Red Lake Resources.

News of a corporate reorganization sent shares in Anaconda Uranium higher. The company is proposing a 3-for-1 stock consolidation and a name change to Anaconda Gold. Once the restructuring is complete, Anaconda aims to acquire the Lingman Lake and Borthwick Lake gold properties in the Red Lake district. The junior closed at 9, up 5, on 1.4 million shares.

Another Red Lake gold explorer, Rubicon Minerals, added 20 to close at $1.75. The David Adamson-led company, along with joint-venture partner Golden Tag Resources, announced plans for a 3,200-metre drill program over the McCuaig property. Slated to cost $435,000, the program was expected to start by the end of June. Rubicon holds a 60% stake in the project, whereas Golden Tag, which ended the report period near a 52-week high at 65, holds the remaining 40%.