Venture Exchange posts solid gains in Jan. 31-Feb. 4 trading week

The S&P/TSX Venture composite index posted robust gains in the Jan. 31-Feb. 4 trading week, surging 354.27 points or 2.64% to close at 13,791.85. One hundred and twenty-eight companies reached new 52-week highs, while the number of companies sinking to new lows climbed to 40.

Rainy River Resources topped the list of value gains on news of final assay results from phase 1 of its 2010 drill program at the Rainy River joint-venture gold project it has with Northern Superior Resources, 190 km northeast of Pickle Lake in Ontario. Highlights from the drilling included 6.9 grams gold over 0.8 metres; 1.8 grams gold over 2.5 metres; and 1 gram gold over 2.4 metres. The news sent Rainy River’s share price rising US$1.35 to US$13 per share.

African Aura Minerals jumped $1.25 to $3.90 per share on the back of two separate news releases. On Feb. 1, the sub-Saharan Africa-focused explorer published a maiden resource estimate for its Nkout iron ore project in southern Cameroon, and on Feb. 3 drill results from its Ndablama gold prospect in western Liberia. Its 100%-owned Nkout project has an inferred resource of 1.04 billion tonnes of iron ore at 34% iron. The estimate covers a 3 km section of a 20-km-long magnetic anomaly and the company continues to drill east and west along strike. Separately, results from the first eight holes of reconnaissance drilling at the Ndablama gold prospect on its 100%-owned Bea Mountain licence, included 8 metres of 6.04 grams gold and 16 metres of 2.38 grams gold. Results from the final 7 holes of the company’s 2,500-metre drill program are expected in the first quarter of this year.

Four of the top ten companies this week in terms of value gains were rare earth companies and none of them posted any significant news. Tasman Metals, with rare-earth projects in Sweden, Finland and Norway, rose 99¢ to $5.34, while Rare Element Resources rose 98¢ to $13.88. Stans Energy advanced 92¢ to $3.20 and Quest Rare Minerals climbed 61¢ to $6.26 per share.

Allana Potash, which holds potash properties in Ethiopia, was the most actively traded stock with 37.9 million shares changing hands. On Feb. 4 the junior amended the terms of a bought deal financing, announced the day earlier, to $27.9 million from $20.01 million. If the underwriters exercise their over-allotment option the proceeds will rise to $32.1 million. The funds will be used to continue exploration and development work at the company’s previously explored Dallol potash property. The junior advanced 40¢ to $1.80 per share.

High copper prices, meanwhile, helped drive Hana Mining shares up 68¢ to $5 apiece. Exploration at its Ghanzi project in the Kalahari Copper Belt of northwestern Botswana has outlined a mineralized area extending 152 km in length. The project is estimated to have a global resource of 4.5 billion pounds of copper and 68.5 million ounces of silver from 233.9 million tonnes.