Rate cuts boost junior market

Vancouver — Anticipating a cut in the U.S. Federal Reserve rate, investors started to nibble on stocks during the week ended Nov. 5. As a result, the Venture Exchange’s S&P Composite Index jumped 27.49 points, or 3% of its value, to close at 933.

Pan Asia Mining was the most actively traded junior explorer, ending the week up 3, to 7 on a volume exceeding 6.6 million shares. The company has not maintained the requirements for a Tier 1 listing on the exchange and so was downgraded to the Tier 2 level.

Canadian Royalties jumped 64 and closed the week at $1.42 with 2.8 million shares changing hands. The company has won the legal battle over a disputed portion of its Phoenix nickel-copper-platinum-palladium property in northern Quebec. Canadian Royalties will retain all its rights in both the Expo-Ungava and Phoenix properties, including the so-called TK zone.

Brazilian Resources remained flat at 3 with 1.4 million shares traded. The company, together with PL Internet, has agreed to an arrangement whereby Brazilian Gold’s privately owned subsidiary, Jaguar Mining, will be taken over by PL. PL Internet will be renamed Jaguar Mining and apply for a listing in Canada. Brazilian Resources raised $2.6 million, which it will use to start gold production at Jaguar’s wholly owned Sabara property in Brazil, processing 1,000 tonnes of ore per day through its fully equipped Caete CIC plant.

Spider Resources ended the week at 6, up a penny, on 1.1 million shares. Stock in the junior has traded heavily since De Beers announced it had cut massive sulphides in one of its 13 holes drilled on the Spider 3 property in northern Ontario. Failing to hit any kimberlites, De Beers elected to stop work on the property. However, the sulphide hole returned 8 metres grading 1.61% copper, 0.34% zinc and 0.13% lead, plus 9.9 grams silver and 0.13 gram gold per tonne. Ownership of the property is shared with KWG Resources, which is 38.9%-owned by Diagem International Resources. Diagem closed at 16, down 4.

Snowfield Development closed at 13, up 2 on a volume of 1.1 million shares. The company recently inked a deal to acquire the Lac Vernon diamonds claims in northwest-central Quebec.

American Bonanza Gold Mining closed flat at 13 with 1.02 million shares crossing the floor. The company has completed an option agreement on its wholly owned Gold Bar and Pamlico properties, both of which are in Nevada. American Nevada Gold (formerly Mask Resources) stands to earn up to a half-interest in both the Gold Bar and Pamlico properties over three years by paying $107,500 upfront, issuing 800,000 shares of American Nevada, and spending $3.6 million on exploration.

Oasis Diamond Exploration found a penny and closed at 5 on the swapping of 973,000 shares. The junior diamond explorer controls more than 212 sq. km of the Wawa diamond area.

National Gold closed up 3, to 33 on 865,000 shares. The company plans to merge with joint-venture partner Alamos Minerals so it can more effectively advance the development of the large Mulatos gold deposit in Sonora state, Mexico. Alamos remained flat at 43.