Junior market slides lower still

Vancouver — Canada’s junior exchange failed to follow the major bourses higher as investors found little reason to buy speculative issues during the holiday-shortened report period ended Oct. 15. The Standard & Poor’s-TSX Venture composite index lost 10.05 points, or 1.1% of its value, to close at 902.68.

Shareholders appeared to grow impatient with the lack of news coming out of First Labrador Acquisition. The company, which holds gold properties in Newfoundland and Saskatchewan, was the most actively traded junior explorer, dropping 2 to close at 2 with 2 million shares changing hands.

Spider Resources continued to trade heavily, closing unchanged at 5 on just over 1.6 million shares. The junior was dealt some bad news when De Beers Canada reported that no kimberlite bodies were hit during a recently completed drill program over the Spider 3 diamond project and that, as a result, the major will stop exploring the Ontario property. Owners of the claims are Spider and KWG Resources.

A big percentage loser, Ventures Resource plunged 4 to close at 2 on just over 1 million shares. The company holds several gold properties in Alaska, most notably the Flat and adjacent Donlin Creek North claims in the western part of the state.

Investors continued to snap up shares in Nevada Pacific Gold following news that joint-venture partner Placer Dome will complete a second round of drilling on the South Carlin gold project. Situated between Newmont Mining’s Gold Quarry and Rain mines in Nevada, the project will be subjected to 2,000 metres of reverse-circulation and core drilling in two holes. Nevada Pacific ended at 45, up 13 on a volume of 862,000 shares.

Despite reports the company had intersected 31.1 metres grading 3.2 grams gold and 134.4 grams silver per tonne in the first hole of an ongoing drill program on its Del Norte property in the Eskay Creek region of northern British Columbia, investors were cold to Teuton Resources. The shares lost 22 in value to close at 15 on a volume of 762,000.

A deal with an Argentine company over the Cuya and El Puesto gold prospects in the Rio Negro province of southern Argentina helped Apac Minerals gain 5. Under the deal, the local can earn a half-stake in the two prospects by spending US$1.5 million over two years. Apac ended at 29 with 540,000 shares crossing the floor.

Three-month old Chesapeake Gold added 6 to close at $1.98 on 280,000 shares. The company was created when Reno-based Glamis Gold took over Francisco Gold earlier this year. Shareholders in Francisco received 1.5 shares of Glamis and 1 share of Chesapeake. Under the deal, Francisco transferred some 3,000 sq. km of recently staked grassroots exploration properties in Nicaragua to Chesapeake, along with $25 million in cash. The new company also holds a 2% net smelter return royalty on Francisco’s Guatemalan portfolio, excluding the Marlin project. Glamis retains the right to acquire a 5% stake in Chesapeake through warrants exercisable for three years at prices of $1.50-2 per share.