The commodity bears continued to rule the day on the Canadian markets during Tuesday trading. For the tale of the tape, the TSX Exchange lost 0.20%, while the TSX Gold Index plunged 2.7% and the TSX Venture Exchange, Canada’s largest junior exploration bourse, fell 1.05% with the declining issuers beating out the advancers by a 555 to 355 margin on volume of 115 million shares traded.

QGX inked a deal that would pave the way for Kerry Holdings Limited, MCS Holding LLC and Mongolia Holdings Corp. to buy all the shares of QGX for C$5 per share in cash. QGX ended the day up C$0.38 at C$4.88.

A big winner during a down day was Northern Gold Mining (NGM). The junior reported surface samples running up to 2,305 grams gold per tonne at its Kirana project in Ontario. Northern ended the day up C$0.175 at C$0.295.

A drill intercept averaging 2,131 grams silver per tonne over 7.62 metres at the Real de Catorce project in Mexico helped shares of Normabec Mining Resources (NMB) add C$0.02 to C$0.33.

Shares of Goldquest Mining (CVE) sold off after the company tabled the latest results for its Las Animas project in the Dominican Republic. Highlights included 4.33 grams gold per tonne over 9.1 metres. Goldquest ended the session down C$0.115 at C$0.365.

Kootenay Gold (KTN) cut 56.18 grams of silver equivalent per tonne over 419.88 metres at its Promontorio silver project in Sonora state, Mexico. Kootenay ended the day up C$0.09 at C$1.80.

The summertime run on junior resource stocks is taking firm hold and one has to wonder if the 2,200 point support level will be taken out. We will see what Wednesday trading has in store.

Source: Resources Stock Roundup Wednesday July 23, 2008