Silver adds shine to gold’s lustre

Vancouver — Canada’s junior exchange rallied over the report period ended June 4, as investors added silver-related stocks to their recent purchases of junior gold issues. The Standard & Poor’s-TSX Venture composite index tacked on 18.41 points, or 1.5%, to close the week at 1,243.72.

ECU Silver Mining dominated the trading floor, adding 2 to close at 11 with nearly 12.4 million shares changing hands. The junior intends to mine the La Esperanza gold-silver vein on New York-listed Hecla Mining’s San Sebastian property in Mexico’s Durango state. Drilling has defined a 1.8-to-2.3-metre-wide mineralized zone extending for 300 metres along strike to a depth of 100 metres. The small-scale operation will use a rented 200-tonne-per-day mill, some 110 km from the property.

Making a strong move higher, Silver Standard Resources jumped $2.15 to $10.40 on 390,000 shares. The company recently acquired a 43.4% interest in the Pirquitas silver project in northern Argentina. The property hosts proven and probable diluted reserves of 30.4 million tonnes grading 128 grams silver, 0.17% tin and 0.81% zinc, using a cutoff grade of 40 grams silver. The price tag is US$4.34 million.

American Bonanza Gold Mining gave back a portion of its recent gains, losing 4 to end at 18 on just over 9 million shares. The cash-strapped company holds the low-grade Copperstone gold project in Arizona and has several exploration properties in Nevada.

Popping back on to investor’s radar screens, Anooraq Resources added 10 to close at 91 on 2.6 million shares. Over the past three years, the Hunter-Dickinson-led company has acquired a large land position on the northern limb of the prolific platinum-palladium-bearing Bushveld complex in South Africa. In the latest deal, the junior can earn a half-interest in 12 properties from Anglo American Platinum by spending $3.6 million over five years.

IMA Exploration moved higher following news that the junior had picked up 80 sq. km of real estate just 5 km west of Barrick Gold’s 3.5-million-oz. Alto Chicama gold discovery in northwestern Peru. The newly acquired ground covers the favourable Calipuy volcanic rocks, which are similar to those hosting other major gold deposits in the region. Shares in the junior closed at 94, up 15, on a volume of 1.9 million.

National Gold climbed to a new 52-week high of 70 before settling back to close at 64, up 7, on just over 2 million shares. In order to meet financial obligations on its Salamandra gold property in Mexico, the Albert Matter-led company is in the midst of raising $1.5 million. Under a deal with Placer Dome, National Gold must pay $1 million 60 days after the 6-month average gold price tallies above US$300 per oz, plus make another, $1.7-million payment after 90 days. The junior and its joint-venture partner, Alamos Minerals, have set their sights on developing the higher-grade core of the deposit, dubbed Estrella. Alamos added 6 to 80 on low volume.

Seabridge Resources hit multi-year highs, adding 41 to close at $3.45 on volume of 1.6 million. The junior acquired the Tundra gold project in the Northwest Territories from major Newmont Mining and Total Resources for US$2.5 million, plus additional payments based on the price of gold.