Exchange loses ground as gold price rallies

Vancouver — Junior mining companies were taken on a roller-coaster ride over the report period April 28-May 4.

First gold and silver prices, and even prices for other commodities, weakened as reports surfaced that China was taking steps to cool its over-heated economy. Gold prices rallied a few trading days later, as nervous investors sought a safe haven while waiting for interest-rate comments by the U.S. Federal Reserve. But the rally wasn’t strong enough to sustain an upward trend on the TSX Venture Exchange, which lost ground for the fourth week in a row, closing down 67 points at 1,658.52.

Jaguar Resources gained another dime to reach $1.50 at the close of trading on May 4. The junior is exploring the Tocantinzinho gold project in Brazil’s Para state. Drilling continues to return some encouraging intersections, the best being 1.76 grams gold per tonne over 96.14 metres and 1.05 grams gold over 104.9 metres.

Trivalence Mining more than doubled to $1 after announcing it had shipped some newly purchased mining equipment to its 85%-owned Aredor alluvial diamond mine in the Republic of Guinea, West Africa. The equipment was picked up from a bankrupt company for US$750,000, and includes everything from draglines and bulldozers to light vehicles, parts and ancillary equipment.

Vancouver-based Entree Gold was among the most active issues over our report period, though it slipped a few pennies to close at $1.11. The junior recently acquired the Shivee Tolgoi group of mineral licences in Mongolia, an exploration hotspot for both junior and senior companies these days.

Polymet Mining gained 42 to reach 92 by the close on May 4 after the company reported that a scoping study completed by Penguin Automated Systems showed lower capital costs for the Northmet project in Minnesota. The study examined on-site production of copper cathode and the shipment of a nickel-cobalt concentrate to specialty refiners. The use of second-hand mining equipment is also expected to lower costs.

Better Resources appears to be generating increased investor attention from its Camp Lake copper-gold-magnetite property, near Campbell River, B.C., and also from its claim block immediately west of the Craigmont copper-magnetite mine in south-central British Columbia. Recent efforts to revive the venerable Craigmont mine are giving Better Resources a shot in the arm as well. The junior got a boost of 3 to reach a dime on the news.

OntZinc was ahead two pennies to reach 13 after announcing plans for its primary asset, the Scotia lead-zinc mine in Nova Scotia. The junior is reviewing options for bringing the project into production, which may include joint-venturing it or an outright sale. Clifford Frame recently resigned as chairman and CEO of the company, and mining engineer Patrick Hannon was appointed president. OntZinc is also looking to reactivate mining operations at the Balmat zinc mine, in New York state.

Spider Resources lost a penny to 16. The junior and partner KWG Resources are drilling a volcanogenic massive-sulphide project in the James Bay Lowlands, as well as kimberlites near the De Beers Victor project in Ontario.

Note: Due to technical difficulties, trading data are not available for May 3rd and 4th.