Venture manages slight gains in June 20-24 period

Vancouver – The S&P TSX Venture Exchange Index managed a slight gain in the June 20 to 24 period, climbing 7.39 points to 1,905.33 after two days of gains outweighed three days of losses. Volume was in line with recent weeks at a somewhat subdued average of 93.3 million shares traded daily.

Ever-fluctuating rare earth stocks once again led value gains during the period. Quest Rare Minerals topped the list, up $1.39 after five straight days of gains to end at $6.45 on 2.8 million shares traded. The company announced plans to spend another $150,000 on exploration at its Strange Lake joint venture in Labrador with Search Minerals, and also released its quarterly management discussion. The company is rebounding from an early June share price fall to a low of $5.01 from May highs of $8.88.

Tasman Metals was second in value gains with a $1.01 increase to end at $4.98 on no news, though it recently announced the completion of 4,700 metres of drilling at its Norra Karr heavy rare earth project in Sweden. The company reports that the drilling has significantly expanded the mineralization thickness, extending the depth of intrusion by roughly 100 metres below the lower limit of the current resource.

Finally, Geomega Resources jumped 97¢ to $3 after releasing results from two holes at its Montviel property in Abitibi, Quebec. One hole returned 544.6 metres grading 1.41% total rare earth oxides and the other hit 127.6 metres carrying 1.51% TREO. The company reports that the drilling extends the mineralized zone 200 metres farther west along strike and 175 metres south, for a defined area of 500 metres along strike and 400 metres along width.

Allana Potash was the second-most traded stock on the Venture, clocking in 20.4 million shares traded after releasing an updated resource estimate for its Ethiopian potash project. The Danakhil project now hosts 673 million measured and indicated tonnes grading 18.65% potassium chloride and an inferred resource of 596 million tonnes averaging 19.96% potassium chloride, while the resource only covers 40% of the company’s licensed land area in the basin. The company’s stock price dropped 34¢ to $1.74 in the period.

Little traded shell company Drexel Resources popped 510% on a single day after announcing a $2.4 million financing. The company’s share price climbed up 51¢ to 61¢ with 106,000 shares traded on news of the financing, which included the announcement that former Fronteer Gold president Mark O’Dea was buying a 32.8% stake in the company. Drexel’s qualifying transaction in September 2010, and current sole property, was for a 60% interest in the Titan copper-gold-molybdenum property in British Columbia from Eagle Plains Resources.

Uranium North Resources climbed 7¢ or 55% to 17¢ after announcing drilling had started on its 20-hole exploration program at its Amer Lake uranium project in Nunavut. The company also announced it had received a two-year land use permit and five-year water licence to drill on its Mallery gold-silver project in Nunavut, with drill mobilization underway. The recent share price gains are, however, still quite below the company’s 52-week high of 55¢ it hit in February.