Rising gold price propels juniors

Gold’s price move above the key US$400-per-oz. level fuelled investor interest on the TSX Venture Exchange over the shortened trading period of June 23-28. However, the exchange closed virtually unchanged over the period, posting a mere 4-point gain to finish at 1572.97.

Gold appears to be moving higher, reflecting concern over the ongoing troubles in the Middle East and an impending interest rate increase of a quarter point by the U.S. Federal Reserve from the current 46-year low of 1%. Gold did not show much volatility during the trading period despite uncertainty and turmoil surrounding the transfer of sovereignty to an interim Iraqi government two days earlier than expected.

Silver managed to eke out a 2 gain to close at US$5.88 per oz. after reaching a high of US$6.15 per oz., whereas platinum closed at US$786 per oz. after trading above the US$800 mark over most of the period.

Once again topping the list of volume leaders was EuroZinc Mining, which traded more than 5.5 million shares and was up 2 to close at 70. Having completed its acquisition of the Neves Corvo copper mine in Portugal, the company is celebrating its status as a mid-tier producer. Next step up: a listing on the Toronto Stock Exchange.

The frenzy and speculation surrounding Placer Dome‘s rumoured ounce-and-a-half-over-400-ft. intersection at the Cortez Hills joint venture in Nevada (held 60-40 by Placer Dome and Rio Tinto) has not let up. Investor activity was fast and furious, with Vancouver-based White Knight Resources and NDT Ventures (part of the Northair Group) leading the pack of most actives and topping the list of percentage gainers with respective increases of 45% and 56%.

White Knight’s shares were up 45 to close at $1.45 over the period on more than 2.5 million shares. The company has a huge land position south of the Pediment deposit on the Cortez Hills property. For its part, NDT Ventures, which operates the smaller, Trend property, immediately south of Cortez and north of White Knight’s property, traded more than 2 million shares and closed up 9, to 26.5.

Just a few weeks ago, NDT Ventures granted Nevada Contact an option earn up to 65% interest in the Trend project. Nevada Contact can earn 51% over four years by paying US$350,000 in cash, spending US$1.5 million, and getting its parent company, Sudbury Contact Mines, to issue 210,000 shares to NDT. Then, by completing a feasibility study, Nevada Contact can acquire another 14% interest.

Sunridge Gold moved higher by 42 to close at $2.15. New infill drill results from its Debarwa copper and gold deposit in Eritrea point to higher overall gold and silver grades for the deposit. The company is stepping up its drill program on the property following the arrival of the fourth drill rig.

Topping the list of percentage gainers, was Fortress Minerals, which gained 40 to close at 55. The company recently bought International Uranium‘s exploration-stage gold-copper properties in Mongolia for 28 million shares.

Lower-than-expected diamond recoveries from its Star Diamond project in Saskatchewan resulted in a hefty 50 loss for Shore Gold, which closed at $1.25. The initial diamond recovery of 338 carats from 4,913 tonnes of kimberlite gives a grade of 0.07 carat per tonne.