Gold fever grips TSX Venture Exchange

Vancouver — With gold stocks leading the way, Canada’s junior exchange continued its upward march over the report period ended May 28. The S&P-TSX Venture Index climbed 22.9 points, or 1.9%, and closed at 1,225.31.

ECU Silver Mining was the week’s market darling, with 13.7 million shares changing hands. The junior closed up 3 to 9. ECU Silver recently inked a deal for the use of a flotation and cyanidation mill with a 200-tonne-per-day milling capacity, situated some 110-km south of its La Esperanza silver-gold project in Mexico.

Benefiting from a higher gold price, American Bonanza Gold Mining doubled its value by adding 11 and closed at 22 on a volume of nearly 10 million shares. The junior holds the low-grade Copperstone gold project in Arizona.

Kalahari Resources jumped 8 and closed at 16 with 5.8 million shares traded. The company has six drill-ready gold properties in Ontario and Quebec.

Moving higher on rumours that Inco is closer to inking a deal with the Newfoundland government over development of the Voisey’s Bay nickel deposit, Donner Minerals closed up 12 to 61 on a volume of 4.7 million shares. Late last year, Northern Abitibi, together with South Voisey’s Bay Nickel, Donner Minerals, Major General Resources and Pallaum Minerals, entered into an option earn-in agreement with Falconbridge, whereby Falco can earn a half-interest in the entire South Voisey’s Bay project by spending $23 million.

National Gold found a dime and closed at 57 on 2.6 million shares. The company’s joint-venture partner, Alamos Minerals, is drilling the Salamandra gold property in Mexico. Alamos closed up 10 to 74 on 481,000 shares.

Vedron Gold closed at 20 up 8 on 2.3 million shares. Investors are anticipating drill results from Placer’s 25,000-ft. drilling campaign on its property in Timmins, Ont. Placer can earn a 51% interest in the Vedron property, adjacent to the Dome mine, by spending $4.5 million on exploration over three years.

Bralorne-Pioneer Gold Mines added 11 to its value and closed at 28 on 2.2 million shares. The company and its partner, Avino Silver & Gold Mines, have set their sights on reopening the past-producing Bralorne and Pioneer Gold mines in southern British Columbia. Avino Silver jumped 70 and closed at $1.15 on 1.3 million shares.

IMA Exploration closed at 79 up 18 on just over 2 million shares. The company recently acquired 80 sq. km of ground in northwestern Peru. These properties are 5 km west of Toronto-listed Barrick Gold’s new Alto Chicama discovery.

Freewest Resources Canada climbed 4 to 40 on 1.9 million shares. The junior recently completed a third round of drilling on the Clarence Stream gold project. The wholly owned property is 70 km from Fredericton in southwestern New Brunswick.

Odyssey Resources closed up 13 to 53 with 1.7 million shares traded. The company recently acquired the Korgan gold property from the Mining Bureau of the Turkish government. The Korgan property spans 27 sq. km in two licences and is 5 km south of the company’s Altintepe gold property.