For the tale of the tape, the TSX Exchange dropped 3.86%, while the TSX Gold Index sank an eye popping 9.3% and the TSX Venture Exchange, Canada’s largest junior exploration bourse, plunged a staggering 8.49%% with the declining issuers swamping the advancers by a 865 to 185 margin on big selling volume of 199 million shares traded.

Rainy River Resources (RR) discovered a new gold zone on its Richardson Township project in northwestern Ontario. Highlights included 2.02 grams gold per tonne over 79.5 metres. Rainy River ended the day down C$0.14 at C$1.86.

Rockwell Diamonds (RDI) has received a hostile C$0.36 per share takeover offer from Pala Investments Holdings Limited. The diamond miner says the offer is “opportunistic” and recommends that shareholders sit tight. Rockwell closed at C$0.33 for a C$0.135 gain.

Shareholders digested the news that Sherwood Copper (SWC) and Capstone Mining (CS) are looking to wed in a deal that would see 1.566 Capstone shares exchanged for each Sherwood share. The end result would be a growth oriented copper miner with two producing mines. Sherwood ended the day down C$0.58 at C$4.06, while Capstone lost C$0.43 at C$2.35.

Lydian International (LYD) cut some nice intercepts from its Amulsar gold discovery in Armenia and managed to get a little love from investors. Highlights included 109 metres running 1.1 grams gold per tonne and 92 metres of 1.4 grams gold per tonne. Lydian ended the day up C$0.04 at C$0.38.

The 1,625 point low for the junior bourse that was hit in mid-2005 has now been breached and the next low is around the 1,500 point mark last encountered in mid-2004. Did we see the final flush of capitulation on Tuesday or is worse set to come? We will see what Wednesday trading has in store.

Source: Resource Stock Roundup Wednesday September 10, 2008