Metals surge drives Venture board momentum

The junior-dominated S&P-TSX Venture Exchange regained some signs of life over the Nov. 15-21 trading session, with the combination of spot gold prices closing in on an 18-year high of US$500 per oz. and spot copper cracking through an all-time high of US$2 per lb. The Composite Index got a 17.76 point boost on the metals rally over the period to close at 2031.54. Average daily trading volumes were up slightly at 36.8 million shares over the week.

The weekly tally of new highs versus lows continued its bearish trend, with 34 companies managing new 52-week highs while an increased 112 companies sank to annual lows.

Most active trader over the week was West Hawk Development, which gained 35%, or 9 per share, closed at 35 on volume of almost 3.9 million shares. Adding to its British Columbia coal portfolio, the company recently optioned the Sustut coal project located near Northgate Minerals‘ Kemess mine. A 1980 review by Gulf Canada estimated a potential resource of at least 63 million tonnes (not compliant with National Instrument 43-101) of low-volatile bituminous coal.

Shares of Excellon Resources jumped a nickel on volume of 3.5 million shares to close at 23 apiece. Earlier this year, the company entered the ranks of silver producer with its Platosa mine in northeastern Durango state, Mexico. With revenue now on-stream, an aggressive exploration program has been launched in the district. In addition, earlier this fall, company directors decided not to proceed with a proposed share consolidation.

Strong trading continued in shares of Simberi Gold, which shed three pennies to close at 11 with over 3.2 million shares changing hands. The company announced it is increasing its planned $2-million private placement financing to $2.5 million. In addition, an insider group recently acquired 12 million shares of Simberi, held by PGM Ventures, at 4.5 apiece and has agreed to purchase an additional 18 million shares at 4.9 apiece. The company is also looking to boost its Kakanda copper-cobalt project interest in the Democratic Republic of the Congo, by acquiring further holdings in private company New Congo Resources Development.

Birch Mountain Resources saw trading volume of 3 million shares and gained 13%, or $1.05 to close at $9.03 per share. Commercial production from its northern Alberta limestone quarry is anticipated before year-end.

Nunavut diamond veteran Dentonia Resources traded over 2.9 million shares on the week, grabbing a penny to close at 11 per share. In addition to continued exploration on its one-third held Lac de Gras WO diamond project, the company has been drilling its Atkinson Lake gold project located on the Mattagami-Selbaie greenstone belt in northeastern Ontario, near the Quebec border. The company is also boosting a recently announced planned private placement to $2.35 million.

Investors traded almost 2.8 million shares of Starfire Minerals over the week, nudging the issue up 1.5 to close at 25. Exploration on its Capri uranium project, 140 km north of Ottawa, returned numerous mineralized drill intercepts.