Venture market resumes upward trend

Renewed gains in metal prices caused the junior-resource-dominated TSX Venture Composite Index to bounce back from recent declines, moving up 4.1% or 99.37 points to close the Feb. 14-20 trading session at 2,539.18. Average daily trading volumes of 57.6 million shares were notably leaner than in previous weeks.

The bullish resource market trend showed signs of moderating over the week with a reduced 53 junior exploration companies touching new 52-week highs, while 18 dropped to new annual lows.

The weekly volume leader was again Colombian-coal-focused Coalcorp Mining, gaining 13, or 25%, on 18.1 million shares to close at 65. Its recent financing was boosted to $207 million following the exercising of the brokerage’s over-allotment option. Funds will be used to acquire Colombian coal projects, including the producing La Francia and La Caypa mines, as well as a port facility.

Spider Resources traded over 5.9 million shares, ending 1.5 higher at a dime per share. The company, along with joint-venture partner KWG Resources signed a mutual assistance agreement with De Beers Canada covering adjoining diamond properties in the James Bay Lowlands of northern Ontario. The juniors will provide land access across its property to De Beers’ Victor diamond project. De Beers will reciprocate by providing the juniors access to exploration and transportation equipment at its mine site, and future bulk-sample processing rights.

Yukon Zinc again placed in the week’s top traders, remaining even to close at 52 on almost 5.8 million shares. The company recently arranged project loan and hedging agreements for development of its Wolverine zinc-copper-lead deposit in the Yukon, where a feasibility study is nearing completion.

Shares of Anaconda Gold gained 7 to close at 82 apiece on volume of 5.1 million. The company recently closed a $1.6-million private placement, which it plans to spend on advancing its Pine Cove gold project in Newfoundland.

Cypress Development re-entered the most-active ranks; almost 4.9 million shares changed hands, edging up 1.5 apiece to 23. Investors are watching the company’s McKenzie Island gold project in the Red Lake, Ont.-area, where drilling is under way. Joint-venture partner Skyharbour Resources traded 3.1 million shares to close at 12, up a penny.

Northwest Territories diamond explorer GGL Diamond traded more than 4.7 million shares, but shed 40%, or 16.5, to close at 24.5 per share. A 45.5-tonne mini-bulk sample from its Doyle kimberlite sill yielded 79 macrodiamonds weighing a composite total of 6.2 carats (including 1.25 and 0.83-carat stones). The project is located just south of the Mountain Province Diamonds-De Beers Gahcho Ku project.

Golden Goose Resources posted a 58% or 23 gain to close at 63 per share on volume of 4.1 million shares. With drilling recently begun on its northwestern Ontario Magino mine gold project, the company added a trendy Frankfurt Stock Exchange listing for its stock.

Skye Resources added a dollar to close at $6.50 on 3.4 million shares. It recently closed a $25-million financing for drilling on its Fenix nickel-laterite project in Guatemala.