Venture returns to gains in April 23-27 period

VANCOUVER — The final week of April brought a hint of relief to the S&P TSX Venture Composite Index with a 14.81-point climb to 1,412.76 points after three weeks of significant losses. The slight turnaround came after the index hit a 2012 low of 1,363.32 points during the period, which marked a 206.47-point drop in April and a 332.82-point drop since late February. Volume was up significantly with an average of 102.3 million shares traded daily, thanks especially to the 140 million shares traded on the final day of the period.

The late activity was due largely to news that Iamgold would takeover Trelawney Mining and Exploration in a $608-million deal, leading to roughly 59 million Trelawney shares being traded as it climbed 86¢ to $3.27. And while the deal was welcomed as a sign of optimism, it was also a reminder of the steep general slide in recent weeks as the roughly 37% premium found in the $3.30-per-share bid happens to be where Trelawney was trading as recently as mid-February. For its all-cash investment Iamgold will gain control of the Cote Lake deposit in Northern Ontario that hosts 930,000 oz. gold indicated and 5.9 million oz. inferred.

Gold Standard Ventures also had a good week, taking the highest value gaining title ahead of Trelawney with a 96¢ climb to $2.74 with 4.9 million shares traded after releasing two more drill results from its Railroad project in Nevada. The latest results from the North Bullion zone of the project included hole 12-1 that hit 164 metres carrying 3.38 grams gold per tonne from 237 metres downhole, while hole 12-2 hit 15 metres averaging 1.16 grams gold from 256 metres depth plus several short intercepts grading less than a gram gold. Hole 12-1 was a 91-metre step-out from hole 11-16 that hit 56 metres carrying 4.29 grams gold from 169 metres in early April.

Uravan Minerals was up sharply after striking a deal with Cameco for the major to earn a 70% interest in its Halliday and Stewardson uranium projects in northern Saskatchewan by spending $22-million on exploration. Cameco can earn 51% by spending $7-million over four years, and then a further 19% by spending the remaining $15-million. The Halliday project spans 21.7 sq. km and the Stewardson property spans 213.5 sq. km. Uravan climbed 8¢ or 80% to end at 18¢.

Roxgold had the biggest value drop of the period, falling 52¢ to $1.02 with 12.7 million shares traded, after releasing more drill results from its Yaramoko project in Burkina Faso. Results from the 21 drill holes included numerous high grade hits such as 1.4 metres carrying 113.04 grams gold, 2.6 metres averaging 47.34 grams gold and 2.6 metres carrying 43.25 grams gold, all true widths. The longest interval was 3.2 metres carrying 11.60 grams gold, while the 81 total intercepts pulled at Yaramoko to date average 3.8 metres true width with a weighted average grade of 20.72 grams gold.

Pacific Booker Minerals climbed 80¢ in the period on no news to end at $12.30, while the company briefly traded as high as $15 in the period. The tightly-held company, with 12.2 million shares outstanding, saw 86,500 shares traded.