Venture loses ground during July 9-13 period

VANCOUVER — After enjoying a brief early-week rally during the July 9 to 13 trading period, the S&P TSX Venture Composite Index pared gains, closing down 2% or 24.4 points at 1,184.25. Uncertainty surrounding the Eurozone crisis and weak job data in the U.S. off-set a mid-week rise in oil prices that saw U.S crude valued at US$84 per barrel. Speculation continued to mount regarding further stimulus measures in China, as the world’s second-largest economy posted its weakest monthly growth performance since 2008.

Canadian junior-gold explorer Roxgold Inc. recorded the highest trade volumes for the week, as 8.2 million shares traded hands following news that activist investors — led by Oliver Lennox-King — were initiating a proxy action in a bid to replace the company’s board of directors.

Roxgold has plummeted 58% or 95¢ over the second quarter and the Lennox-King group maintains that management is mishandling the company’s flagship Yaramoko gold project in Burkina Faso, West Africa. Roxgold gained 21% or 12¢ following news of the proxy battle en route to a 68¢ weekly close. The company has re-scheduled its annual general meeting for September 25.

Vancouver-based junior Barkerville Gold Mines continues to generate market buzz as investors debate the validity of the company’s impressive 10 million oz. gold resource at its Cow Mountain property in northern British Columbia. Barkerville traded roughly 8 million shares during the period, with a mid-week news release revealing that the British Columbia Securities Commission was investigating the merits of the company’s 43-101 technical report on the project. Barkerville fell 23% on the news before closing the week at 88¢.

GoldQuest Mining generated buzz of a more positive variety, as the company topped the value-added charts, jumping 24¢ or 38% on its way to an 86¢ weekly close. GoldQuest released news that it had mobilized a second drill rig at its Romero gold-copper discovery in the Dominican Republic. Markets continue to support the junior explorer following a drill hole in mid-May that cut 231 metres of 2.4 grams gold per tonne.

On the other side of the coin, Vancouver-based exploration outfit Gold Reach Resources dropped 35% or 60¢ to lead the value-lost category — closing the week at $1.15 per share. The company released assay results from the first two holes on its 100%-owned Ootsa Property adjacent to the Huckleberry Mine in British Columbia. Gold Reach is step-out drilling at its new West Steel discovery, with highlights including 817 metres grading 0.2% copper, 0.21 grams gold, and 0.026% molybdenum in hole 100.

Advanced-stage graphite player Northern Graphite had a rough week on the value side, dropping 40¢ per share en route to a $1.38 close following the release of a feasibility study on the company’s Bissett Creek graphite property in northern Ontario. According to the study, the US$103-million project carries a US$125 million net present value with a 20% internal rate of return at an 8% discount rate.