Continued strong metal prices appear to have prompted some junior exploration company shareholders to take profits by selling portions of their positions. The S&P-TSX Venture Composite Index slid back from its recent plus-2,000 level and closed at 1,972.18 for the period March 9-15, off 2.3%, or 46.21 points, on the week. Average daily trading volumes also retreated, to 54.7 million shares.
Gold remained strong, closing out the session at US$440 per oz. on the New York spot market. Bullion managed a rally, touching a 13-week high of US$446.50 per oz.
Silver shed 14 to close at US$7.35 per oz. on the New York spot market. Platinum held strong, gaining US$2 to close at US$875 per oz., while palladium gave back a little ground, closing at US$201 per oz., off US$7.
Base metals stayed strong, with copper holding tight at US$1.55 per lb. Nickel closed at US$7.29 per lb., off 9 from the previous week’s close. Zinc added a penny to close at 64 per lb., while lead held steady at 46 per lb.
The number of new highs versus lows fell during the report period, with 39 companies reaching new 52-week highs compared with 26 Venture-Exchange-listed explorers falling to new yearly lows.
The heaviest trader, as well as the greatest percentage gainer, was Freewest Resources Canada. More than 8.2 million Freewest shares crossed the floor, and the stock closed up 10.5, or 55%, at 29.5. The company, along with partner Murgor Resources, released more drill results from the Windfall gold project in northwestern Quebec. Hole 30 returned 17 metres grading 11.9 grams gold per tonne. Channel sampling recently returned 40.6 grams gold over 6 metres. Testing of extensions at the F-17 zone returned numerous gold intercepts, including 11 metres at 9.3 grams gold in hole 21.
The first runner-up among volume-leaders was Forest Gate Resources, which enjoyed a volume of more than 5.8 million shares, though the stock slid 10 to close at 40. The company is arranging a $6.5-million private placement and intends to spin-off the wholly owned subsidiary Blue Note Metals. In May, shareholders will vote on the reorganization, which calls for Forest Gate to transfer its entire portfolio of New Brunswick projects to Blue Note, then distribute shares of the subsidiary to shareholders. Blue Note also plans to acquire Breakwater Resources‘ past-producing Caribou and Restigouche base metal mines.
Chuck Fipke’s Cantex Mine Development placed third on the volume charts, trading 5.5 million shares and gaining 1.5 to close at 7.5. Cantex and Metalex Ventures carried out glacial till sampling on the West Greenland joint venture, and this work resulted in a significant number of diamond indicator minerals (DIMs) with positive geochemistry. Distribution and surface textures observed in the DIMs suggest a proximal source, possibly beneath a large, ice-covered lake on the claim group.
Northwestern British Columbia coal producer Western Canadian Coal was one of the top value gainers, closing up 55 at $5.80.
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