Higher gold price fails to boost juniors

Toronto Venture Exchange-listed companies showed little enthusiasm over the trading period, as gold moved higher, ranging from US$395 to US$412 per oz. and then dropping to around US$403 in New York. The S&P-TSX Venture Exchange index closed up 26.32 points, or about 1.7% over our extended trading period from Aug. 13 to 24, to close at 1507.29.

After reaching a peak of more than US$412 per oz., gold futures weakened near the end of the trading period, though they managed to stay above the key US$400-per-oz. level. Gold fell as the U.S. greenback reached a 3-week high against the euro and oil prices came off their highs. There was also talk that higher energy prices would not result in inflation, which augurs well for economic growth.

Silver continued its rise, closing 3% higher than at the end of previous report period, at US$6.65 per oz., after trading as high as US$6.83. Copper prices eased off from the previous period, down 3 to US$1.27 per lb.

Platinum slipped by 1.7% while palladium managed a 3% gain to close at US$857 and US$217 per oz., respectively.

New 52-week lows outnumbered new 52-week highs by almost 9-to-1 over the trading period. Ninety-six companies saw new 52-week lows, compared with 11 reaching new highs, reflecting the weakness in the junior sector.

Topping the volume leaders was JNR Resources, with more than 7.7 million shares changing hands. JNR and its partner at Moore Lake, International Uranium had been intersecting high grades of uranium there. JNR’s share price rose 11 to close at 67.

China Diamond placed second on the most-actives list, tacking on a penny to close at 12 on volume of more than 5.6 million shares. The company confirmed that a third diamondiferous kimberlite pipe had been found at its 701 Changma mine in China. China Diamond wants to complete additional core drilling to define the geometry of the “invisible pipe” and collect a bulk sample between the 110 and 120 levels.

Spider Resources was the third most active issue, with more than 4.2 million shares trading hands and gaining 2 to close at 14. Spider recently closed a $500,000 flow-through financing and is riding high after 10 samples containing macrodiamonds were found on its Wawa property; meanwhile, more massive sulphides were intersected at the McFauld’s Lake deposit.

Stikine Gold gained a healthy 13 to close at 52 on volume in excess of 2.7 million shares. The company’s drill program is nearing its target, 4 km south of the former Sullivan lead-zinc mine in southeastern British Columbia. The diamond drilling at Sullivan Deeps reached a depth of 2,310 metres and hit Middle Aldridge geology, which overlies the Sullivan mine. A minor breakdown earlier in the week has been repaired.

Top percentage gainers included MAG Silver, which gained 66% on volume of more than 0.9 million shares, to close at 97. The company has completed an agreement according to which Lagartos can acquire the Cinco de Mayo property in Mexico.

Eagle Plains Resources was up more than 50% during the period on a volume exceeding 250,000 shares to close at 46. The company and Northern Continental Resources started a short drilling program on their LCR property, north of Terrace in west-central British Columbia.