Gold rebound nudges juniors higher

The TSX Venture Exchange retook some ground over the trading period June 16-22, closing at 1,568.96, up almost 46 points. The junior market was propelled by a rebound in the gold price, closing at US$395 per oz., up about US$6. Gold seems to be enjoying some buoyancy, approaching the US$400-per-oz. level, prior to the next interest rate decision by the U.S. Federal Reserve. That decision is expected by month’s end.

Silver mirrored gold’s gains, closing at US$5.86 per oz., up 15 over the week. Base metals exhibited further weakness, with copper, lead and nickel all down slightly.

Decliners still far outnumbered gainers with a paltry four Venture-Exchange-listed juniors touching new highs during the trading period, compared with 48 companies setting new 52-week lows.

The most actively traded junior miners for the period included White Knight Resources, EuroZinc Mining, Vantex Resources and Victoria Resource.

White Knight saw large volume and gains on rumours of a wide intersection of high-grade gold mineralization by Placer Dome at its Cortez project in the Battle Mountain trend of Nevada. White Knight holds gold projects in the vicinity of Cortez. The stock closed at an even $1, up 41 on the week with volume exceeding 7 million shares. The stock also posted one of the top percentage gains, 69%, over the period.

Victoria Resource’s gains are also attributable to the Placer speculation, as it has projects in the area as well. It closed at $1.28, up 38 on the week.

EuroZinc Mining continued its presence in the most-actives. The company has now completed its acquisition of the Neves Corvo copper mine in Portugal. Continued recommendations by analysts helped the issue, which closed at 62, up 12.

Vantex Resources traded heavily, closing at 48.5, down 35.5, after being halted for drill results from the Lake Expanse zone on its Guillet project in western Quebec. Although significant gold grades were encountered, investors expressed trepidation that some drill holes failed to intersect any mineralization. The issue also was among the top weekly percentage decliners and value losers, off more than 40%.

Silver Standard Resources led the value-gainers, adding $1.54 to close at $15.74, up almost 11%. Buoyant metal prices helped the pure-silver company, which announced a 40% increase in its measured and indicated silver resource to 403.6 million oz.

Alamos Gold also delivered large gains, up half a buck to $2.32 after graduating to the TSX big board from the Venture listings. The company recently commenced a feasibility study on its multi-million-ounce Mulatos gold project in Mexico.

Trivalence Mining held steady at 65 as diamond production its 85%-owned Aredor alluvial mine in Guinea and wholly owned Palmietgat mine in South Africa recently sold for US$823,000. It was the third diamond parcel sale so far this year, the cumulative value being US$3.5 million. Aredor crews recently transplanted production equipment to new areas of pay gravel. The 14-ft., 120-ton-per-hour pan plant and support equipment are now operating on new alluvial beds. In addition to Aredor and Palmietgat, Trivalence is active at the Kokong kimberlite project in Botswana. Kokong is a joint venture with Rio Tinto, which is earning a 75% interest.