Resource Stock Roundup:Tuesday, May 05th, 2009
May 5th, 2009 | By Doug Casey | Category: Gold MarketNews that construction spending in the United States rose 0.3 per cent in March sent investors into a buying frenzy during Monday trading on the Canadian Markets. For the tale of the tape, the TSX Exchange surged 3.93%, while the TSX Gold Index added 4.7% and the TSX Venture Exchange, Canada’s largest junior exploration bourse, tacked on 1.68% with the advancers beating out the decliners by a 528 to 362 margin on good volumes of 210 million shares traded.
Shares of Kaminak Gold added C$0.055 to close at C$0.18 after the junior announced that it picked up an option to earn 100 per cent in three projects located in the White Gold area of the Yukon.
Moly miner Roca Mines added C$0.065 to close at C$0.40 on no new developments.
Charles Fipke-led Metalex Ventures reported that the third vertical hole drilled on a kimberlite discovery in Angola hit kimberlite at 12.2 metres depth and the drill is still in primary kimberlite at 141.8 metres depth. Metalex is hoping that the eroded parts of this pipe are the source of the abundant high-quality alluvial diamonds being mined downstream. Metalex ended the day up C$0.10 at C$0.69.
On the copper front, shares of Anvil Mining added C$0.26 to close at C$1.39 after the company closed a C$34.5 million financing priced at C$1.15 per share. The funds will be used on its Kinsevere copper mine project in the Democratic Republic of Congo.
Phoscan Chemicals surged C$0.10 to C$0.43 on no new developments. The cash rich company holds the Martison phosphate property in Ontario.
Kinross Gold (NYSE:KGC) has agreed to take down 10 million of the 14 million shares of Fortress Minerals being offered at C$0.25 per share. The proceeds will be used on the Svetloye gold Project in Far Eastern Russia. Fortress ended the day up C$0.06 at C$0.35.
A rising tide lifts all boats seems to be the saying of the day. The euphoria has junior exploration companies once again talking about spinning off assets to unlock value. This suggests that the go-go mentality is coming back into the sector….perhaps way too soon. Unemployment numbers for Canada and the United States are due to be released on Friday so some caution is warranted. We shall see what Tuesday trading has in store.
Source: Resource Stock Roundup:Tuesday, May 05th, 2009
Advertisement
They've led you to believe that investors who want outsized gains must take on ridiculous risks.
Click here to learn how a Small One-Time Investment Could Grow Until It's Larger Than All of Your Other Investments Combined.
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.