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Resource Stock Roundup:Friday, May 22nd, 2009

Doug Casey — Fri, 22 May 2009 19:30:21 +0000

The big board stocks took a well deserved rest but the junior stocks continued to motor forward during Thursday trading on the Canada Markets. For the tale of the tape, the TSX Exchange gave back 2.76%, while the TSX Gold Index rallied 1.4% and the TSX Venture Exchange, Canada’s largest junior exploration bourse, tacked on 0.39% with the decliners edging out the advancers by a 386 to 379 margin on 169 million shares traded.
The on again, off again $22.5 million take over of Southwestern Resources by London-based Hochschild Mining PLC is finally set to close. Hochschild initially failed to complete the transaction over concerns about the sale of Southwestern’s former troubled Boka project in China but calmer heads prevailed. So the exchange bids good bye to Southwestern and its rather controversial history. Southwestern closed at C$0.49 and the take out price is C$0.50.

Cardero Resource (AMEX:CDY) cut in half its original $200 million price tag for the Pampa de Pongo iron deposit in Peru but still pockets a cool $100 million. The Nanjinzhao Group paid a $10 million deposit, along with the earlier $2 million paid. The balance of the purchase price of $88 million is now due on the earlier of ten days after necessary Chinese governmental approvals to proceed with the purchase are in hand and December 17, 2009. Cardero ended the day up C$0.26 at C$1.27.

Canada’s largest bourse is straddling the 10,000 point mark, while the junior board is threatening to break out above the 1,100 point mark thanks to a strong move in gold. We shall see what Friday trading has in store.

Source: Resource Stock Roundup:Friday, May 22nd, 2009

Resource Stock Roundup:Wednesday, May 20th, 2009

Doug Casey — Wed, 20 May 2009 19:14:09 +0000

Following the Victoria Day holiday on Monday, the Canada Markets roared out of the gates during Tuesday trading. For the tale of the tape, the TSX Exchange surged 3.46%, while the TSX Gold Index dropped 1.7% and the TSX Venture Exchange, Canada’s largest junior exploration bourse, tacked on 1.26% with the advancers edging out the decliners by a 437 to 399 margin on 196 million shares traded.

Avion Resources tabled an updated resource for its Segala and Tabakoto gold projects in Mali. The Segala zone hosts an open pit measured and indicated resource of 4.1 million tonnes grading 3.3 grams gold per tonne and an inferred resource of 2.5 million tonnes running 3.52 grams gold per tonne. The underground resources came in at nearly 2.7 million grading 3.73 grams gold per tonne in the measured and indicated camp, while the inferred section hit nearly 3.4 million tonnes grading 3.68 grams gold per tonne. Avion ended the day up C$0.35 at C$0.38.

One time highflying Katanga Mining reported a first quarter loss of US$52 million, or US$0.25 per share compared to a loss of US$17.4 million or US$0.10 per share in the same quarter last year. The company sold US$47 million of copper cathode, cobalt and cobalt concentrate from its Democratic Republic of Congo operation in the quarter. Katanga ended the session down C$0.02 at C$0.83.

It was a rough day for shareholders of Cardero Resource (AMEX:CDY). The company announced that a subsidiary of Nanjinzhao Group Co. Ltd. has declined to pay a US$10 million deposit due May 17 to purchase the Pampa de Pongo iron property in Peru. The US$200 million price tag is currently being negotiated. Cardero ended the day down C$0.32 at C$1.02.

Grayd Resource tagged a nice hole on its La India project in Mexico. The hole returned 89.9 metres grading 4.26 grams gold per tonne. Grayd ended the day up C$0.10 at C$0.45.

Despite more weak housing data out of the United States, investors continued to gobble up equities. We shall see what Wednesday trading has in store.

Source: Resource Stock Roundup:Wednesday, May 20th, 2009

Resource Stock Roundup: Thursday, March 19th, 2009

Doug Casey — Thu, 19 Mar 2009 21:33:32 +0000

A late-day rally helped keep the winning streak alive for equities during Wednesday’s session on the Canadian Markets. For the tale of the tape, the TSX Exchange gained 0.81%, while the TSX Gold Index surged 8.9% and the TSX Venture Exchange, Canada’s largest junior exploration bourse, added 1.48% with the advancers edging out the decliners by a 353 to 349 margin on volume of 114 million shares traded.

Shares of Titan Uranium got a boost after the company announced that Mega Uranium had purchased 13.5 million Titan shares from Dejour Enterprises (AMEX:DEJ). That represents 15.5 per cent of Titan. Titan ended the day up C$0.045 at C$0.215, while Mega closed down C$0.09 at C$1.46.

Skygold Ventures tabled an updated resource of 102.26 million tonnes grading 0.785 grams per tonne gold and an inferred resource of 11.65 million tonnes running 0.787 grams gold per tonne at its Main zone on its wholly owned Spanish Mountain project in central British Columbia. Skygold ended the day down C$0.02 at C$0.195.

In a case of will they pay or not, Cardero Resource (AMEX:CDY)extended the $10 million payment due from the Nanjinzhao Group Co. in regards to the purchase of Cardero’s Pampa de Pongo iron ore project in Peru. The new date is the earlier of May 17, 2009, or within five business days after Nanjinzhao receives federal approvals. Cardero ended the day up C$0.13 at C$1.60.

The rally was all thanks to the United States Federal Reserve, which said it will buy long-term Treasury bonds for the first time in four decades in an effort to revive the recession-hit economy. That sparked a big jump in the price of bullion. But remember, a little profit taking never hurt anyone and after posting solid gains of late, a little selling would probably be a welcome sight. We will see what Thursday trading has in store.

Source: Resource Stock Roundup: Thursday, March 19th, 2009