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Resource Stock Roundup: Wednesday, June 03rd, 2009

Doug Casey — Wed, 03 Jun 2009 19:21:03 +0000

The Canadian Markets took a well deserved breather during Tuesday trading with several pundits expressing views that a market correction is imminent. For the tale of the tape, the TSX Exchange gave back a modest 0.13%, while the TSX Gold Index was the big winner by jumping 2% and the TSX Venture Exchange, Canada’s largest junior exploration bourse, added a modest 0.10% with the decliners beating out the advancers by a 456 to 431 margin on a robust 227 million shares traded.
Osisko Mining tabled an updated resource estimate for the South Barnat deposit located adjacent to the 6.28 million ounce Canadian Malartic gold deposit in Quebec. Based on a cut-off grade of 1 gram gold per tonne, the measured and indicated resource tallied 1.94 million ounces of gold at an average grade of 2.09 grams gold per tonne with another 100,000 ounces gold running 1.86 grams gold per tonne in the inferred resource section. Osisko ended the day up C$0.09 at C$7.18.

Shares of Continental Nickel fell C$0.20 to C$0.55 on no news. The junior has a 70% interest in Nachingwea nickel project in Tanzania.

Underworld Resources wasted little time in inking a C$14 million private placement comprising 8.4 million units at C$1.25 per unit and 2,415,000 flow-through units at a price of C$1.45. A unit holds one share and one-half of a warrant. Each whole unit warrant is exercisable at C$1.60 for one year. Coming off a string of hot holes including 104 metres of 3.4 grams gold per tonne on its White Gold project in the Yukon, topping up the till makes sense. Underworld ended the day down C$0.09 at C$1.43.

There appears to be a few cracks developing in this two and half month rally. We shall see what Wednesday trading has in store.

Source: Resource Stock Roundup: Wednesday, June 03rd, 2009

Resource Stock Roundup:Thursday, May 21st, 2009

Doug Casey — Thu, 21 May 2009 19:36:57 +0000

The bulls continued to ravage the bears during Wednesday trading on the Canada Markets as a drawdown in oil inventories sparked a big rally in the energy space. For the tale of the tape, the TSX Exchange added another 1.3%, while the TSX Gold Index rallied 4.4% and the TSX Venture Exchange, Canada’s largest junior exploration bourse, tacked on 0.85% with the advancers edging out the decliners by a 442 to 393 margin on 178 million shares traded.
Western Canadian Coal is looking to wed with 34 percent stakeholder Cambrian Mining PLC. The acquisition values Cambrian at approximately C$120 million or 57 pence based on the closing price of Western shares of 76 pence. Along with its 34 percent interest in Western, Cambrian also holds $29 million of Western’s convertible debentures. Western ended the day up C$0.03 at C$1.40.

Oro Gold tagged 7.6 grams gold per tonne over 42.5 metres from its Trinidad property in Mexico. Oro ended the day up C$0.02 at C$0.51.

Shares of Bowmore Exploration surged C$0.165 to C$0.40 after the junior announced that Osisko Mining was taking down C$3 million of a C$4.2 million private placement in Bowman. Bowmore says it will use the proceeds from the private placement for exploration work on the Santa Elvira gold-copper property in Mexico, new project acquisitions, development and for working capital. Osisko ended the day up C$0.33 to C$5.95.

Shares of Centamin Egypt added C$0.35 to close at C$1.61 after the miner reported a 43 metre drill intercept running 17 grams gold per tonne starting a 499 metres downhole at its Sukari Hill porphyry project.

All lights appear green for equity investors but with the big board now at new highs for the year, a pullback could well be pending. We shall see what Thursday trading has in store.

Source: Resource Stock Roundup:Thursday, May 21st, 2009

Resource Stock Roundup:Tuesday, January 27th, 2009

Doug Casey — Tue, 27 Jan 2009 20:20:34 +0000

News on the job loss front continued to mount but existing home sales in the United States rose unexpectedly in December and that sparked a mini-rally during Monday trading on the Canadian markets. For the tale of the tape, the TSX Exchange tacked on 0.33%, while the TSX Gold Index gave back 3.2% and the TSX Venture Exchange, Canada’s largest junior exploration bourse, added 0.87% with the advancing issuers edging out the decliners by a 399 to 304 margin on 147 million shares traded.

Over in New York, Freeport-McMoRan (NYSE:FCX) posted its biggest quarterly loss in company history, losing nearly $14 billion during the fourth quarter. The company reported a loss of $13.9 billion, or $36.78 per share, compared with a net income of $414 million, or $1.05 per share in the prior-year period. The results, however, include special charges of about $14 billion, or $36.84 per share, largely due to commodity price declines and the acquisition of Phelps Dodge. The major is also going to the market looking to raise up to $750 million. Freeport ended the session up C$2.10 at C$24.91.

Mergers amongst the explorers continued, with Detour Gold and PDX Resources looking to join forces. PDX is Detour Gold’s largest shareholder with already a 42 per cent stake. Under the proposal, each PDX share will be exchanged for 0.2571 of a Detour Gold share marking a value of C$2.12 per PDX share. Detour ended the session up C$0.42 at C$8.68, while PDX added C$0.50 to close at C$2.15.

Osisko Mining tabled an inferred resource estimate of 1.81 million ounces of gold grading 2.12 grams gold per tonne on the western portion of the South Barnat deposit on its Canadian Malartic property in Quebec. Osisko closed down C$0.04 at C$4.56.

Uranium North added C$0.025 to close at C$0.115 after announcing that its Amer Lake Main zone deposit in Nunavut hosts 6.2 tonne grading 0.084% U308 representing 11.5 million pounds of yellow cake.

The annual Round-Up Mining & Exploration Convention is now underway in Vancouver and that may have sparked a little of the interest in the junior explorers. All the talk is centered on gold with speakers generally preaching to the converted. We will see what Tuesday trading has in store.

Source: Resource Stock Roundup:Tuesday, January 27th, 2009