Mining index posts gain despite western slump

The Canadian Venture Exchange (CDNX) index dropped 10.21 points, or 0.3%, to close at 3,439.57 over the report period ended May 16. The oil, gas and technology indices posted modest losses while the mining index broke the trend, adding 8.62 points, or 0.2%, to its value to finish the week at 4,010.38. Investors appear to be showing interest in bargain-priced mining ventures, in part because the high-flying technology stocks are being increasingly viewed as over-valued.

JNR Resources took top spot as the most actively traded company, gaining 4 over the week and closing at 26 on 4.3 million shares traded. Shares of the junior uranium explorer exploded to a new 52-week high on news that hole 1 on the Moore Lake property, a joint venture with Kennecott Canada, hit 10.4 metres of unconformity-style uranium mineralization. Situated in Saskatchewan’s Athabasca Basin, the hole is part of a recently completed 1,000-metre drill program. Holes 1 and 2 failed to cut any significant mineralization. The assay results from hole 3 are pending. This region in Saskatchewan has been active for the past year, triggered by a high-grade discovery made by Cameco at its La Rocque claims last year. The geological environment of Cameco’s new find has been described as being similar to the McArthur River and Cigar Lake unconformity deposits, also in northern Saskatchewan.

Shares of International Wayside Gold Mines were halted at the request of the CDNX, which cited the need for clarification of the company’s activities. The junior’s stock hit a high of $2.80 a month ago on news of a gold discovery in the previously explored BC vein in Barkerville. The latest drill results were disappointing, with hole 14 intersecting 89.2 ft. grading 0.053 oz. gold. The hole was designed to test the downdip extension of the high-grade mineralization cut in hole 13 (109 ft. grading 0.309 oz. gold). The company’s stock last traded at $2.04, up 61, and regulators seem anxious to learn what brought about the trading flurry.

Investors focused their attention on the players in the Cariboo region, near Internation Wayside’s ground. Castle Metals closed up 7 to finish the week at 17, while joint-venture partner Gold Giant Minerals, closed at 12, up 2. The companies announced they have staked 400 additional mineral claims in the vicinity of Waysides’ new Footwall gold discovery in the Barkerville area. The Barkerville region was a booming placer-mining district in the 1800s.

Another area player, Abitibi Mining, ended the week at 11, up 3. Wayside recently acquired a half-interest in the junior’s 8.75-sq.-km Wolf property, also near Barkerville.

Nevada Pacific Gold lost 6 and ended the week at 27. The company recently announced that Newmont Gold, a subsidiary of New York-listed Newmont Mining, would begin a phase-2 drill program on its Limousine Butte joint venture gold property in Nevada.

Posting strong gains on weak volume, Gabriel Resources tacked on 28 to close at $2.58. Gabriel is working on a feasibility study for the Rosia Montana gold property in Romania. The company has several other projects in the country, including ones prospective for base metals as well as gold. Analysts expect Gabriel may sell or take on a senior partner to develop Rosia Montana once the study is completed.

Rock Resources hit its lowest level in almost five months as investors continued to sell off shares, following poor results from the Cerro Carmen and Cerro Macote gold targets on the Coiron copper-gold project in Chile. The company’s shares fell 6 to close at 25.

Asia Minerals slipped 2 and closed at 13 on high-volume trading. The company reports it is not aware of any reason for the increased trading.