Resource Stock Roundup: Wednesday, April 15th, 2009
Apr 15th, 2009 | By Doug Casey | Category: Financial NewsAfter another strong bout of buying, investors elected to book some profits during Tuesday trading on the Canadian markets. For the tale of the tape, the TSX Exchange fell 0.58%, while the TSX Gold Index dropped 1.1% and the TSX Venture Exchange, Canada’s largest junior exploration bourse, gave back 0.40% with the advancers edging out the decliners by a 355 to 353 margin on volume of 148 million shares traded.
Capstone Mining produced 26.1 million pounds of copper in concentrate in the first quarter of 2009 at total cash costs of $1.05 per pound. Meanwhile drilling at its Minto North target in the Yukon continues to show signs of adding tonnage to the Minto operation with results like 2.26 per cent copper and 1.11 gram gold per tonne over 26.7 metres. Capstone ended the day down C$0.11 at C$1.97.
Denison Mines (AMEX:DNN) added C$0.21 to close at C$1.51 after the uranium miner entered into a memorandum of understanding with Korea Electric Power (NYSE:KEP) to purchase 20% of Denison’s U3O8 production and acquire 58 million common shares of Denison by private placement at $1.30 per share.
Pan American Silver (NASDAQ:PAAS) has stepped up to the plate to co-develop Orko Silver’s La Preciosa project in Mexico. Pan American will fund the development in return for a 55 per cent stake. Orko ended the session down C$0.04 at C$0.96, while Pan American added C$0.13 at C$20.30.
San Gold cut 207 grams gold per tonne over 2.3 metres in a 50 metre step out hole from the Hinge zone on its Rice Lake property in Manitoba. San Gold ended the day up C$0.13 at C$1.73.
Shares of Rodinia Minerals added C$0.12 to C$0.295 after announcing that a two-dimensional reflective seismic survey has been contracted for its Clayton Valley lithium brine prospects in Nevada.
A stock to watch is Western Prospector Group. The company was halted from trading pending news at C$0.54. CNNC International has offered to acquire all Western shares for C$0.56 each.
The broader bourse appears to be at a crossroads in terms of direction. Perhaps it is merely a consolidation phase after a nice runup or perhaps buyers have run out of gas. We shall see what Wednesday trading has in store.
Source: Resource Stock Roundup: Wednesday, April 15th, 2009
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Doug Casey is a contrarian investor, sought-after public speaker and author of several books. His work "Crisis Investing" held the position of # 1 bestseller on the New York Times list for 26 consecutive weeks. Doug's unusual views on the economy - and just about everything else - have gained a huge following in the investment community, and it certainly helps that his stock recommendations of undervalued junior exploration companies have made his subscribers millions. Now in its 27th year, Doug's monthly newsletter, the International Speculator, is one of the most established and esteemed publications on gold, silver and other natural resource investments. Together with the Casey Energy Speculator, it covers a broad range of carefully selected stocks with the very real potential of double- and triple-digit returns within 12 to 24 months.