Venture finds gains in Nov 28 – Dec 2 period

Vancouver – The S&P Venture Composite Index continues to show significant volatility, climbing 51.74 points in the November 28 to December 2 period to end at 1,556.88 points. The upswing only recouped about half the loss from the week before, but still underscores the continued market swings. Volume kept in line with recent weeks at an average of 88.5 million shares traded daily.

Verde Potash rallied on news that it could successfully produce conventional potash from its vast resources of verdete slate in Brazil. The company has already established the financial viability of producing a product it calls Thermopoash from the slate, but only now has Verde proven in a pilot plant that it could also produce conventional potash from the material. The company expects to release estimated capital and operating costs for the process next year. Verde traded as high as $7.85 in the period before ending at $7.20 for a $1 gain, making it the highest value gainer of the period.

Peru-focused Rio Alto Mining hit a 52-week trading high of $3.57 in the period before ending up 52¢ at $3.49 on 8.6 million shares traded. The company announced that it would be meeting its production guidance of 50,000-60,000 oz. gold from its La Arena mine despite a blockade in September that halted mine development activities, though it will hit the low edge of the guidance. The stock price gains, however, came on no apparent news before the production update was released. The Arena mine went into production in May and is now operating at 24,000 tonnes per day.

Trelawney Mining and Exploration was up 40¢ to $3.50 on 8.1 million shares traded after announcing it had completed a $25.9-million financing. Despite its current share price the company managed to sell 5.52 million flow-through common shares at $4.70 each. The company also completed its acquisition of Augen Gold in early November and more recently completed its option agreement on the Chester property. Trelawney now holds 70% of the Chester 1 property while Treelawn Investment holds a 30% free carried net profits interest, and Trelawney hold a 92.5% interest in Chester 3, with the remaining 7.5% also held by Treelawn.

Shear Diamonds continued its rapid climb, up another 14¢ or 62% to end at 37¢ after climbing 9¢ the week before. Volume was strong again at 5.4 million shares traded, and again the company released no news. The diamond market has, however, seen heightened attention following Anglo American’s $5.1 billion acquisition of Oppenheimer family’s De Beers stake, and BHP Billiton’s announcement that it was considering the sale of its diamond assets. Shear controls the past-producing Jericho diamond mine in Nunavut.

Greenland-focused Hudson Resources had a bit of a rally, climbing 23¢ or 56% to end at 64¢. The company was trading as high as $1.86 in January before staring a long decline, and actually hit its 52-week low of 40¢ in the last period. Hudson Resources, exploring for rare earth elements and specialty metals, released its MD&A in the week, while earlier in November the company announced drill results from its Sarfartoq project including 8 metres grading 6.49% TREO and 22 metres grading 3.95% TREO, with the 14 holes averaging 10.5 metres grading 3.6% TREO.