Market News (April 11, 2011)

The relatively subdued March 28-April 1 period had the S&P-TSX Venture composite index drop 15.63 points to 2,298.40. Volume averaged out to a recent low of 137 million trades daily, while the bears and bulls were fairly even with 51 companies hitting 52-week highs and 59 hitting new lows.

Saturn Minerals was by far the busiest stock with 27.6 million shares traded. The company announced it discovered an 89-metre coal intersection at 44.7 metres depth on the Overflowing property at its Saskatoba project in western Manitoba. It reports that the intercept is one of the longest single coal intersections ever reported in Canada. Saturn saw its shares more than double on the day of the news before ending up 10¢ at 32¢.

Richfield Ventures had the biggest value gains, climbing $1.45 to $7.93 after the company announced a joint-venture with Silver Quest Resources. Richfield controls 100% of the southern portion of the Blackwater gold project in British Columbia, but only 75% of the Davidson property in the northern portion of Blackwater after earning into it from Silver Quest. The two have approved an $8.6-million work program on Davidson, with Silver Quest contributing $1.8 million. On April 4, New Gold made a takeover offer for Richfield, valuing the company at $550 million, and driving shares to $10 at presstime.

Pacific Wildcat Resources climbed steadily after releasing drill results from its Mrima Hill rare earth and niobium project in Kenya. The drilling was part of the company’s due diligence to acquire a 70% stake in the project. Hole 3 cut 30 metres grading 8.85% total rare earth oxides (TREO) including yttrium, hole 7 hit 40 metres carrying 5.58% TREO, hole 6 cut 43 metres of 5.25% TREO and hole 2 intersected 30 metres of 6.49% TREO. Pacific Wildcat’s share price climbed 57¢ to $1.67 on 7.8 million shares traded.

Guyana-focused Reunion Gold kept up
its strong gains after sealing a $35-million bought-deal financing with BMO Capital Markets and Dundee Securities at $1.75 per share. Reunion will put the money towards its historic Matthews Ridge manganese project in Guyana that hosts multiple non-compliant resources and some apparently salvageable facilities. Reunion Gold jumped 60¢ to $2.30, and has climbed from around 70¢ in late
February after releasing trenching results from the project.

 Moving out of the single digits, Barker Minerals climbed 6¢ to 11¢ on 18.5 million shares traded after releasing sample results from its projects in central B.C. From its Cariboo lead-zinc-silver project, chip sampling returned 8 metres of 29 grams silver, 20% zinc and 6% lead, and from the Black Bear project, grab samples graded as high as 4,354.28 grams silver per tonne and 59% lead, and a chip sample returned 1,292.57 grams silver and 37.1% lead over a 1-metre width. 

The Dow Jones industrial average edged up 156.13 points to finish the March 28-April 1 trading week at 12,376.72, while the S&P 500 index climbed 18.61 points to 1,332.41. The Philadelphia Gold and Silver index rose 0.27 point to 214.93. 

Randgold Resources topped the list of value gains with an advance of US$7.50 to US$83.60 per share following news of a 5% increase in attributable resources and reserves for 2010. Attributable measured and indicated resources rose from 20.64 million oz. to 21.77 million oz. over the year, while inferred resources increased from 6.69 million oz. to 7 million oz.  Attributable reserves grew from 15.56 million oz. to 16.39 million oz. without reducing the overall reserve grade year-on-year.

Shares of BHP Billiton surged US$6.17 to US$96.84 on news that the company has approved a US$554-million investment at its Escondida copper mine in Chile. The money will be used to relocate the crushing and conveying facilities currently inside Escondida’s main pit in order to improve access to higher-grade ore and support higher production from 2013.
The project is expected to be completed
by mid-2012. 

BHP also announced that its Olympic Dam project (ODP) in South Australia is now in the feasibility study phase. The ODP would develop a new open-pit copper mine and associated gold and uranium byproducts alongside BHP’s existing underground operation and boost annual production from 180,000 tonnes of copper to 750,000 tonnes over the next three decades. A final decision on the project is expected by year-end.

Agnico-Eagle Mines shares were down US$3.27 to US$64.42 after the company reported that a kitchen fire in early March at its Meadowbank mine has substantially reduced the workforce at the mine and lowered production rates. Agnico-Eagle now expects full-year gold production at Meadowbank to be 310,000 oz., at total cash costs of US$700 per oz. with 60% of this production coming in the second half of the year. Agnico-Eagle had announced full-year guidance for Meadowbank was about 360,000 oz. at cash costs of US$600 per oz.

U.S. most active issues

VOLUMEWEEK

(000s)HIGHLOWCLOSECHANGE

Alcoa*AA10282917.8017.0217.47+0.38

Freeport McMo*FCX8475956.2753.4555.08+0.53

Silver Wheatn*SLW6044344.8942.0742.83-0.97

Potash C Sask*POT4362860.9255.5960.27+3.04

Hecla Mining*HL353969.278.669.00+0.02

Kinross Gold*KGC3347716.0515.2215.36-0.71

Newmont Mng*NEM2923955.0852.6554.37+0.41

Intl Coal Gp*ICO2823611.6210.7411.39+0.34

Barrick Gold*ABX2656652.3750.4251.27-0.24

Mosaic*MOS2599882.4076.6680.37+1.55

U.S. greatest percentage change

VOLUMEWEEK

(000s)HIGHLOWCLOSECHANGE

Yellowcake Mg*YCKM1730.040.020.04+100.0

Linux Gold*LNXGF2500.050.020.05+25.0

Yanzhou Coal*YZC274038.5032.8037.89+16.0

Harry Winston*HWD54416.9214.4616.71+15.7

Goldfield*GV3040.400.320.39+14.7

Tombstone Exp*TMBXF9610.090.060.09+12.5

Kimber Res*KBX8331.811.481.80+11.8

Canarc Res*CRCUF3260.200.170.19+11.7

Starfield Res*SRFDF160.100.080.10+11.1

China Shen Zh*SHZ11265.384.244.81+10.3

Gold Am Mng*SILA12340.150.100.10-28.5

Elray Res*ELRA20840.070.040.05-16.6

Grandview Gld*GVGDF100.060.060.06-14.2

Cream Mnrls*CRMXF1770.410.330.36-10.0

Uranerz Energ*URZ65263.503.133.22-9.8

SinoCoking Cl*SCOK17719.998.158.89-9.6

Petaquilla Mn*PTQMF4931.050.940.96-9.4

America West*AWSR251.591.351.36-9.3

Denison Mines*DNN19772.672.322.49-8.7

Oromin Expl*OLEPF721.351.201.21-8.3

U.S. greatest value change

WEEK

VOLUMECLOSECHANGE

Randgold Res*GOLD499220183.60+7.50

BHP Billi-BHP*BHP1569891996.84+6.17

BHP Billi-BBL*BBL835579980.63+5.33

Yanzhou Coal*YZC274026837.89+5.23

Compass Mnls*CMP28386494.53+3.76

Cliffs Nat Rs*CLF1422853198.02+3.61

Agrium*AGU260703592.71+3.25

Potash C Sask*POT4362784960.27+3.04

Allied Nevada*ANV53680137.06+2.88

Mesabi Trust*MSB93882941.53+2.73

Agnico-Eagle*AEM1028630364.42-3.27

Consol Energy*CNX2027410853.13-2.35

Buenaventura*BVN547963042.63-1.00

Silver Wheatn*SLW6044306842.83-0.97

SinoCoking Cl*SCOK17705688.89-0.95

Central Fund*CEF1435240022.23-0.86

Kinross Gold*KGC3347702815.36-0.71

Teck B*TCK1132484553.16-0.54

Cameco Corp*CCJ2385032930.54-0.53

Mag Silver*MVG10703211.80-0.43