Uranium fuels junior market

A continuing trend of strong metals prices, pretty much across the board, drove the junior mining market to a strong week during the Oct. 6-12 period.

Daily trading volumes on the small board averaged 46 million shares, with the S&P-TSX Venture Composite Index showing a gain of 16.3 over the period to close at 1,675.21. The index would have closed out the session on an even stronger note except for a large decline, 21 points, on its last day, in reaction to a significant drop in the gold price.

Bullion closed at US$414.50 per oz. and remained pretty much even over the week, though it had seen an intersession high of US$424 per oz.

Silver generally mirrored gold’s course, closing the trading period at US$7.02 an ounce; it touched US$7.25 over the week. Platinum and palladium prices saw choppy trading in the period, bouncing between US$840 and US$850 per oz., and US$222 and US$232 per oz., respectively.

Copper shined, touching a 16-year high of US$1.50 per lb. before closing at US$1.46.

The gap between gainers and decliners on the junior mining board narrowed dramatically. Some 31 Venture Exchange-listed juniors saw new yearly highs for the trading period, compared with just 49 companies setting new 52-week lows — a significant shift in recent trading patterns.

Northern Saskatchewan uranium explorers grabbed the top three positions in the Venture-Market volume leaders for the week. Top spot went to JNR Resources, which saw almost 5.5 million shares change hands and gained three pennies to close at $1.17. The market was impressed by the high-grade uranium values reported at JNR’s Moore Lake project, a joint venture with International Uranium. Drilling returned 10 metres grading 4.03% U3O8, including 1.4 metres of a spectacular 19.96% U3O8. International Uranium traded 2.8 million shares, down 81 from the previous week, to close at $3.93.

Consolidated Abaddon Resources was the second most active trader, with volume exceeding 5.3 million shares, mostly in one day. The market action followed an announcement the company had staked 60 sq. km of ground prospective for uranium on the eastern rim of the Athabasca Basin. The Huard Lake project is 12 km north of Cameco‘s McArthur River deposit, the world’s largest high-grade uranium deposit (proven and probable reserves: 437 million lbs. U3O8 with an average grade of 25% U3O8.

Harry Barr’s CanAlaska Ventures was the third most active trader, with more than 3.9 million shares crossing the floor; the stock was up 42.2% to close at 32. The company confirmed the acquisition of 480 sq. km of uranium prospects, also on the eastern Athabasca Basin (near the McArthur River deposit). The company intends to acquire more ground in the region and raise $900,000 in a private placement, for exploration purposes.

Among the percentage gainers during the period was Solitaire Minerals, which gained 52%, or 5.5 a share, to close at 16 on a volume of 1.6 million. The company agreed to acquire the Highrock Lake uranium project, southwest of Key Lake in northern Saskatchewan.