Junior Exchange bucks downtrend

Vancouver — Canada’s junior exchange managed to hold its ground while major bourses stumbled in the wake of numerous corporate fraud allegations. The S&P TSX Venture Exchange composite index closed the week ended July 9 up 6.5 points, or 0.5%, at 1157.40.

American Bonanza Gold Mining was this week’s volume leader, with 3.9 million shares crossing the floor. The junior miner added 3 to its value and closed at 21. The company has $2 million set aside for advancing the Copperstone project in Arizona, which hosts an estimated total resource of 2.1 million tons grading 0.58 oz. gold per ton.

Diagem International Resource was flat at 25 on 3.3 million shares. The junior recently recovered 112 diamonds from surface gravels and kimberlitic material situated on its 1000 property in Brazil. Thirty-five diamonds, including one stone weighing 4.2 carats, were recovered from a 25-cubic-metre sample from surface gravels immediately overlying the ARP-1 kimberlite. The property is held 51% by Diagem and 49% by Juina Mining.

Gallery Resources closed up 6 to 20, with just over 2 million shares traded. The junior recently signed an option agreement with BHP Billiton Diamonds for an opportunity to earn an interest in several nickel/copper/platinum-group-metal resource opportunities identified by BHP Billiton in eastern Canada.

Pacific Minerals shed 4 to close at $1.15 on a volume of 1.4 million shares. The junior has raised US$3 million as a result of a private placement from Ivanhoe Mines. A total of US$2 million will be used to advance the JBS platinum-palladium property and the 217 gold project, both of which are in China.

Moss Lake Gold Mines lost 3 and closed at 12 on 1.4 million shares. The company recently announced a shares-for-debt agreement with majority shareholder River Gold Mines. Moss will issue 3 million shares at 15 per share primarily in settlement of outstanding debt, with the balance being paid in cash. The junior will also launch a diamond drill program on its wholly owned Moss Twp. gold property, in the Shebandowan greenstone belt, west of Thunder Bay, Ont.

Donner Minerals tumbled a dime and closed at 47 with 1.3 million shares crossing the floor. The Harvey Keats-led company is gearing up for a 3,500-metre, 12-to-20-hole drill program on the South Voisey Bay project in Labrador. Initial drilling will focus on electromagnetic anomalies outlined by ground electromagnetics.

Antoro Resources tacked on 9 and closed at 47 with 1.2 million shares traded. The company inked a deal to gain a 90% stake in the White Lake property, in Hemlo, Ont., by issuing 900,000 shares and granting a 1% net smelter return royalty to MJL Explorations, plus a 10% non-participating interest in the property to Geotest.

Seahawk Minerals lost a penny and closed at 2 with just over 1 million shares changing hands. The company is in discussions with its debenture-holders in an attempt to reschedule or refinance $2.3 million in principal and interest.

Montreal-based Dianor Resources lost a penny and closed at 15 on 776,000 shares. The junior is exploring for diamonds in the James Bay region of Quebec and has the second-largest land position in the region.