Rockwell Diamonds (RDI) came out swinging against the hostile takeover offer by Pala Investments Holdings Limited. According to management, the C$0.36 per share offer is simply too low. Rockwell ended the session up C$0.005 at C$0.295.

Shares of International Tower Hill Mines (ITC) added C$0.05 to close at C$1.48 on 1.5 million shares traded. The Alaska and Nevada gold explorer has been the subject of some fund selling of late and perhaps the worst is now over.

West Timmins Mining (WTM) cut 7.07 grams gold per tonne over 2.6 metres at its Thorne property in Ontario. The result was good enough for a C$0.065 gain to C$0.38.

High River Gold (HRG) rebounded from Friday’s selloff after announcing the sell pressure came as a result of being dropped from the S&P/TSX Composite, Global Gold, Global Mining, and SmallCap indices. High River closed up C$0.29 at C$0.64.

Looks like the big gains seen on Friday was more of a short covering rally than sustainable buying. For now it looks like gold will be the big benefactor of the proposed bailout of the financials. We will see what Tuesday trading has in store.

Source: Resource Stock Roundup Tuesday, September 23, 2008

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