TSX Venture Exchange – Oct. 27-Nov. 2

The reporting period of Oct. 27-Nov. 2 was a volatile one for the S&P/TSX Venture composite index, with a 43-point loss one day cancelled by a 47-point gain the next. By the end of the week, the board was down 16.33 points, at 1,289.63. Daily trading volumes were down slightly from the highs of recent weeks, averaging 108 million shares.

Despite the market’s volatility, during the week more junior companies rose to new 52-week highs than fell to new lows. Specifically, 72 Venture-listed companies reached new heights while only 26 dropped to new lows.

After eight months of searching for a suitable merger or acquisition candidate, Castle Gold announced its support of a friendly takeover bid from Argonaut Gold. Argonaut is offering $1.25 for every Castle Gold share, though the price can climb to a maximum of $1.50 per share if the price of gold is above US$1,050 per oz. for a five-day period in late December. On the news, Castle Gold shares gained 21¢ in a day and ended the week up 18¢ at $1.09.

News that Allana Resources has received what it described as “multiple unsolicited offers from various strategic counterparties” to participate in the company’s Ethiopian potash project lifted its share price 9¢ to 31¢. In July, Allana signed a memorandum of understanding with ChinaCo, wherein the Chinese firm offered to pay 70% of the costs of developing a mine at the Danakil depression in exchange for a 70% interest in the project. The junior has released no further information about the alternative offers and has not yet signed a definitive agreement with ChinaCo.

SouthGobi Energy Resources’ decision to quintuple its coal production in Mongolia had a sustained impact on its share price, which gained 90¢ over the week to close at $13.70. The Ivanhoe Mines subsidiary will boost output at its Ovoot Tolgoi mine and will also develop a new mine at the nearby Soumber deposit.

Strong demand for Uracan Resources shares prompted the company to increase a recently announced private placement by $1 million to $5 million and the news lifted its stock 13¢ over the week to close at 41¢. Uracan will use the funds to continue exploration and development work at its low-grade North Shore uranium project in Quebec.

Despite releasing another set of good drill results from its rapidly growing Livengood gold project in Alaska, International Tower Hill Mines lost 33¢ over the week to close at $5.07. Recent results included 117 metres grading 1.2 grams gold per tonne and 114 metres averaging 0.9 gram gold. A mid-October resource estimate lifted the contained gold count at Livengood to 8.1 million indicated oz. and 4.4 million inferred oz.

And Goldsource Mines lost 23¢ to end the week at $1.67 on news that the initial resource estimate for its Border coal discovery, which was expected in September, is still not ready. Goldsource’s share price shot from 30¢ to almost $20 last summer when the junior drilled into a thick coal bed while hunting for diamonds in Saskatchewan.

TSX-V most active issues
		VOLUME	WEEK
		(000s)	HIGH	LOW	CLOSE	CHANGE
Allana Res	AAA	19153	0.33	0.20	0.31	+ 0.09
RomarcoMnrls	R	17594	1.26	1.10	1.20	-0.04
Q-Gold Res	QAU	17069	0.04	0.02	0.02	+ 0.01
Great Western	GWG	12005	0.28	0.23	0.27	+ 0.01
Garson Gold	GG	10560	0.11	0.09	0.10	0.00
Canasia Indust	CAJ	8364	0.19	0.15	0.17	+ 0.01
North Am Gem	NAG	8197	0.17	0.12	0.15	+ 0.01
Terrane Metals	TRX	7303	0.97	0.69	0.95	+ 0.21
San Gold Res	SGR	6972	2.75	2.43	2.70	0.00
Gold Hawk Res	CGK	6714	0.04	0.03	0.04	-0.01

TSX-V greatest percentage change
		VOLUME	WEEK
		(000s)	HIGH	LOW	CLOSE	CHANGE
Q-Gold Res	QAU	17069	0.04	0.02	0.02	+100.0
Odin Mining	ODN	114	0.08	0.06	0.08	+100.0
Peat Res	PET	14	0.14	0.12	0.14	+ 75.0
Northern Gld M	NGM	1020	0.14	0.08	0.12	+ 71.4
Zinco Mng	ZIM	46	0.15	0.09	0.15	+ 66.6
Softrock Mnrl	SFT	20	0.07	0.05	0.05	+ 66.6
OroAndes Res	OAR	171	0.19	0.11	0.17	+ 54.5
Klondike Gold	KG	1333	0.03	0.02	0.03	+ 50.0
Duncan Park H	DPHH	553	0.03	0.01	0.03	+ 50.0
Getty Copper	GTC	34	0.04	0.03	0.03	+ 50.0
Pac Coast Nikl	NKL	25	0.04	0.04	0.04	-50.0
Mesa Uran	MSA	43	0.12	0.10	0.10	-47.3
Aguila Am Res	AGL	40	0.05	0.05	0.05	-44.4
Asian Minl Res	ASN	44	0.11	0.10	0.10	-37.5
African Metals	AFR	147	0.40	0.22	0.22	-35.2
Condor Res	CN	145	0.15	0.12	0.12	-33.3
NorthArrowMn	NAR	207	0.22	0.16	0.16	-33.3
Canaf Group	CAF	10	0.04	0.04	0.04	-33.3
Alpha Gold	ALQ	99	0.08	0.06	0.06	-33.3
Richmond Mnls	RMD	147	0.04	0.03	0.04	-33.3

TSX-V greatest value change
WEEK
		VOLUME	CLOSE	CHANGE
SouthGobi Engy	SGQ	142645	13.70	+ 0.90
Chesapeake Gld	CKG	164872	4.65	+ 0.50
Pac Booker Min	BKM	29332	8.23	+ 0.47
Terrane Metals	TRX	7303464	0.95	+ 0.21
Contintl Mnls	KMK	2559210	1.63	+ 0.19
Castle Gold	CSG	5936391	1.09	+ 0.16
Uracan Res	URC	5855156	0.41	+ 0.13
CBR Gold	CBG	807985	0.63	+ 0.12
Diamcor Mng	DMI	26300	0.38	+ 0.11
Rugby Mng	RUG	170500	0.41	+ 0.11
Anfield Vent	ANF	224790	3.00	-0.34
Intl Tower Hil	ITH	1184194	5.07	-0.33
Goldsource Min	GXS	261929	1.67	-0.23
Bear Creek Mng	BCM	1537985	3.60	-0.19
East Asia Mnls	EAS	3185052	1.80	-0.18
Galway Res	GWY	2953322	1.00	-0.18
Tribune Uranm	TCB	77512	0.45	-0.17
Whitemud Res	WMK	338970	0.60	-0.17
Decade Res	DEC	2945136	0.54	-0.16
Metanor Res	MTO	5544593	0.46	-0.15