Resource Stock Roundup: Wednesday, December 31st, 2008
Dec 31st, 2008 | By Doug Casey | Category: Financial NewsWith the tax loss selling season now in the rear view mirror, the Canadian Markets continued to rebound during Tuesday trading. For the tale of the tape, the TSX Exchange added 2.24%, while the TSX Gold Index was the lone loser falling 2% and the TSX Venture Exchange, Canada’s largest junior exploration bourse, tacked on 4.05% with the advancing issuers beating out the decliners by a 552 to 224 margin on volume of 145 million shares traded.
Silvercorp Metals came out after the close and announced that it is suspending its TLP and HPG mines, as well as scaling down mining at the LM mine in China. The miner also expects to put its newly constructed Ying mill to be put on care and maintenance. A sign of things to come, Silvercorp says that smelters in China are shutting down or reducing their capacities, resulting in less demand for concentrates and a change in smelter terms. Silvercorp ended the day unchanged at C$2.95.
Hawthorne Gold has stepped up to the plate and is taking full ownership of the Taurus gold deposit in British Columbia by buying the remaining 70% stake from American Bonanza Gold. The price tag is 6.75 million shares giving American Bonanza a 13% stake in Hawthorne. At last count, Taurus held 32.4 million tonnes grading 1 gram gold per tonne. Hawthorne ended the day down C$0.03 at C$0.35, while American Bonanza closed unchanged at C$0.045.
Shares of Merrex Gold added C$0.01 to close at C$0.18 after the junior announced that it has acquired a 50% stake in the Crackingstone River uranium project in Saskatchewan and sold a 25% interest in the West Voiseys Bay joint venture project. Merrex will issue 1.2 million shares and spend C$1.2-million of exploration in the first year, and may incur a further C$2.4-million of exploration expenditures in the second year. For the 25% interest in the Voiseys Bay project, Merrex pockets C$1.2-million and retains a net 25% participating interest.
Western Prospector Group had another good day on no new developments. The company recently upgraded the resource estimate for its Gurvanbulag uranium project in northeast Mongolia with a feasibility study pending. Western added C$0.14 to close at C$0.53.
Cash strapped Oilexco is a stock to watch as the producer was halted from trading pending news at C$0.89.
The mini-rally in the junior market is going full bore and with such a dramatic sell off in 2008 one has to wonder how big the bounce could be. We will see what Wednesday trading has in store.
Source: Resource Stock Roundup: Wednesday, December 31st, 2008
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