Resource stocks win big on junior market

Resurgent metal and oil prices helped push the TSX Venture Exchange to another strong performance for the period ended Oct. 5, as the S&P-TSX Venture Composite Index continued its blistering pace, rising another 75.55 points, or 4.8%, to 1,658.91 points on good volume.

Volume leader Stikine Gold dropped 12.5, or 13%, to 45.5 as the explorer reported disappointing initial results from a 2,800-metre diamond-drill hole that was aiming to hit a significant sulphide horizon related to the closed Sullivan polymetallic mine, near Kimberley, B.C. While assay results are pending, the bottom of the hole did cut laminated and massive bands ranging from 0.27 to 0.98 metre wide and containing 15-90% sulphides, including pyrhotite, pyrite and sphalerite.

London, Ont.-based China Diamond rose a penny to 11.5 on heavy volume as it reported a record month of production at its 701 Changma mine in China’s Shandong province. For the month ended Sept. 25, the underground mine (which has been operating since 1970) produced 11,347 carats greater than 1 mm in size from 8,752 tonnes grading 1.3 carats per tonne. Operators recovered 39 gem-quality diamonds greater than 1 carat.

The top percentage gainer was Montreal-based junior Namex Exploration, which doubled to 80. The company reported results from drilling what it believes is an extension of the Whistle offset dyke on to its Post Creek property in the Sudbury basin. The FNX Mining-Dynatec joint venture has been exploring the Whistle offset dyke, where exploration has outlined the Norman North and Norman 2000 nickel/copper/gold/platinum-group-metals deposits. Namex is compiling geophysical, geochemical and geological data and intends to follow up with more drilling this winter.

Northern Dynasty Minerals took the top spot among value gainers, rising 95 to $6.15. The company recently added former Homestake Mining President and Chief Operating Officer Walter Segsworth to its board of directors.

Northern Dynasty is spending $34.5 million to advance its Pebble gold-copper-molybdenum project in southwestern Alaska and intends to complete a bankable feasibility study next year.

JNR Resources and partner International Uranium continued to trade heavily after the mid-September release of drill results from their Moore Lake uranium project, in Saskatchewan’s Athabasca Basin. In particular, hole 61 returned a grade equivalent of 4.03% U3O8 over 10 metres at a depth of 265 metres, including a 1.4-metre intercept of 19.96% U3O8.

JNR closed down a hefty 26 at $1.14 while International Uranium slipped 7 to $4.74 on the TSX.

Overall, the greatest percentage loser was Electra Gold, which fell 37% to 12. Electra is not as exciting as its name might suggest; the company produces industrial minerals for the cement industry. In September, the Vancouver-based company received an order from Lehigh Northwest Cement Co. for 7,200 tonnes of a new product called “high-silica geyserite,” which sells at a substantial premium to normal, chalky geyserite.