Junior exchange sings summertime blues (July 21, 2003)

Canada’s junior exchange retreated somewhat during the report period ended July 15 as the price of bullion lost some lustre. The S&P-TSX Venture Exchange composite index shed 9.88 points, or 0.88%, to close at 1,117.19.

Wolfden Resources closed the week at $2.72, up 50, with 1.47 million shares traded. Driving the dramatic increase were drill results from the West Zone discovery at the High Lake property in Nunavut. The first two holes intersected up to 6.15% copper and 1.91% zinc, plus 142.3 grams silver and 3.49 grams gold per tonne. The West Zone was uncovered during follow-up work on an anomaly identified from an airborne geophysical survey.

A nice percentage gainer, La Plata Gold closed at $1.50, up 33 with 23,500 shares traded. The company is engaged in gold and silver mining in Argentina and Mexico.

Another hot percentage winner was Gateway Gold, which jumped 30 and closed at $1.30 with 316,000 shares traded. The company is in the midst of a $653,000 surface exploration program on its gold properties in Elko Cty., in the Jerritt Canyon mine district of northeastern Nevada.

Shear Minerals ended the week up 8 to $1.15 with 1.3 million shares traded, whereas partner Northern Empire Minerals closed at $1.74, up 21, on a volume of 496,000 shares. The companies, together with partner BHP Billiton, announced that two additional kimberlite pipes, Tuvaaq-2 and Tuktu-1, had been discovered on the Churchill Diamond project, near Rankin Inlet, Nunavut. This brings to nine the total number of kimberlite pipes discovered on the project, and expands the discovery area to 30 km east-west by 15 km north-south.

American Bonanza Gold Mining closed at 28, up 3, with 1.28 million shares traded. The company has begun underground drilling at the Copperstone project in Arizona. The work is designed to upgrade the D-Zone resource to reserve-level definition. The drilling will also aid in stope design and test the limits of the high-grade gold mineralization in the D-Zone.

IMA Explorations tacked on 26 and closed at $1.70 with 1.2 million shares traded. The company recently identified a large chargeability anomaly at its Navidad silver-copper-lead prospect in southern Argentina. The anomaly measures 1.6 by 1.3 km and starts near surface in areas of exposed mineralization; it extends to depths of 300 metres.

Arctic Star Diamond closed at 68, up 11, on a volume of 1.1 million shares. The junior announced a private placement financing of up to 875,000 units priced at 60 per unit for proceeds of $525,000. A unit will consist of one share and one non-transferable warrant entitling the holder to buy one additional share for two years at 67. Proceeds will be used to explore diamond properties.

Newly minted Mag Silver added 15 and closed at 90 with 1.1 million shares crossing the floor. Investors have bid up the stock in recent weeks in the hope that drilling on the Juanicipio property will return favourable values. The first two holes cut mineralized veins showing the same geological and mineralogical characteristics as the famous Santo Nino veins on the adjoining Fresnillo mine property. The first hole returned 10.9 grams gold and 200 grams silver per tonne from a 30-cm section. Results from the second hole are expected any day now.