Venture sees gains in Feb.21-24 period

Vancouver – The shortened February 21 to 24 trading period saw the S&P TSX Venture Composite Index end up 31.37 points at 1,689.52 points following three days of gains and one day of losses. Volume perked up in the period, averaging 120 million shares traded daily compared with 106 million per day the week before.

Cadillac Mining had the highest percentage gain of the week, ending up 16¢ or 188% at 24.5¢ after trading as high as 50¢ with a total of 13.6 million shares traded. The gains came after the company released three drill holes from its Goldstrike project in southwestern Utah that included 82.3 metres grading 1.25 grams gold per tonne and 73.1 metres carrying 1.08 grams gold, both starting at roughly 24 metres downhole. The reverse circulation drill results are the first in over a decade from the past-producing heap leach operation, while Cadillac now plans to raise money and go back with diamond drilling to better understand the complex structure.

Northern Graphite continued its strong 2012 climb, gaining 40¢ in the period to end at $2.08 for overall gains of $1.22 since January 4.  The company is benefitting in part from projected supply constraints and speculation in the graphite market, which has seen prices double since 2009 as use in products such as lithium ion batteries and fuel cells grows. Northern Graphite controls the Bissett Creek graphite project in northern Ontario, which hosts 26 million indicated tonnes grading 1.81% graphitic carbon, and 55 million inferred tonnes averaging 1.57% graphitic carbon. 

Several silver stocks were amongst the highest value gainers of the week despite releasing little to no news, as the price of silver gained 6.4% in the period to end at US$35.41 per oz. Silver-focused Bear Creek Mining was the highest value climber on the index, up 50¢ to $3.99; Orko Silver was second with a 42¢-gain to $2.05, Silvercrest Mines was up 30¢ to $2.84, and Impact Silver was up 24¢ to $1.93.

Equinox Exploration saw significantly increased volume and climbed 7¢ to 17.5¢ after announcing plans to acquire three exploration concessions in Chile’s Atacama region. The 4.5-sq.-km property hosts the Aura copper among other copper prospects, and will cost Equinox US$250,000 cash and 3.5 million shares over five years. The company also recently finalized terms to acquire 62 unpatented lode mining claims in Arizona’s Pinal County, spanning roughly 4.9 sq. km in an area southwest of Florence. Roughly 800,000 Equinox shares traded hands in the period, compared with about 41,000 the week prior.

With 21.1 million shares traded Royal Coal was the most active company on the index, though the attention was nothing to celebrate. The volume was largely due to the company announcing it was unable to complete a proposed financing and that unless it raises money soon it is doubtful it will be able to continue as a going concern, which led to its share price declining 3¢ to end at only half a penny with 257 million shares outstanding. The company has several million dollars in outstanding debts and payments owing to Sandstorm Metals & Energy and Mercuria Energy Group.