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mining news|Resource Stock Roundup:Thursday, June 04th, 2009

Doug Casey — Thu, 04 Jun 2009 19:21:39 +0000

A little pin pricked the Canadian Market bubble during Wednesday trading with a stronger United States dollar putting pressure on commodity prices. For the tale of the tape, the TSX Exchange fell 2.82%, while the TSX Gold Index plunged 3.5% and the TSX Venture Exchange, Canada’s largest junior exploration bourse, dropped 2.96% with the decliners beating out the advancers by a 521 to 325 margin on a robust 218 million shares traded.
Shares of Moto Goldmines gave back some ground after rallying hard on news that Red Back Mining was making a friendly move on the company. Under the deal, each Moto share will be exchanged for 0.45 of a Red Back share. The transaction is valued at around $500 million. Speculation is that a rival bidder, most likely Randgold Resources (NASDAQ:GOLD), will step into the play. Moto dropped C$0.35 to close at C$4.75, while Red Back lost C$0.73 at C$8.92.

It was a busy day at South African-based Gold Fields (NYSE:GFI). First off, Africa’s second- largest miner agreed to sell its 19.9 percent stake in Sino Gold Mining to Eldorado Gold in an all stock deal valued at $282 million.

Eldorado will exchange 48 of its shares for every 100 shares of Sino Gold. That will give Gold Fields 27.8 million shares or a 7 per cent stake in Eldorado. Eldorado closed at C$10.41 for a C$0.57 loss.

Next up, Gold Fields inked a deal to earn up to 70 per cent of the Woodjam North gold-copper property in British Columbia from Cariboo Rose Resources, which holds 40 per cent and Fjordland Exploration, which holds 60 per cent. Under the proposal, Gold Fields can take an initial 51 per cent interest by spending C$7 million and making $350,000 in cash payments over a three year period. Gold Fields can earn another 19 per cent by spending an additional C$12 million over a four year term. Cariboo ended the day up C$0.04 at C$0.135, while Fjordland added C$0.03 to close at C$0.11.

East Asia Minerals added C$0.06 to close at C$0.70 after reporting rock chip samples of up to 125.9 grams gold per tonne over 23 metres at the Miwah project in Indonesia.

Greystar Resources tagged significant, near-surface gold mineralization three kilometres south of its wholly owned, multimillion-ounce Angostura gold-silver deposit in northeastern Colombia. Highlights included 36.7 metres grading 1.1 gram gold per tonne. Greystar ended the day up C$0.09 at C$3.74.

Is it the usual one step back for every two steps forward or was Wednesday sell-off the start of a widely anticipated correction to the nearly three month rally? We shall see what Thursday trading has in store.

Source: Resource Stock Roundup:Thursday, June 04th, 2009

Resource Stock Roundup: Tuesday, February 10th, 2009

Doug Casey — Tue, 10 Feb 2009 19:37:46 +0000

A one day delay in the release of the bank bailout plan for the United States had the bulls and the bears battling to a draw during Monday trading on the Canadian markets. For the taile of the tape, the TSX Exchange added a modest 0.44%, while the TSX Gold Index fell back 4.4% and the TSX Venture Exchange, Canada’s largest junior exploration bourse, lost 0.91% with the declining issuers edging out the advancers by a 350 to 334 margin on 155 million shares traded.

Merger mania amongst the junior explorers continued with Avion Resources looking to acquire Dynamite Resources. The proposal calls for Dynamite shareholders to get 0.75 of an Avion share for each Dynamite share. The move would consolidate the Segala mine property, in which Dynamite has a 40 per cent interest. Dynamite closed at C$0.14, up C$0.01, while Avion was unchanged at C$0.20.

Shareholders of Frontera Copper got an early Valentine’s Day present as Invecture Group raised its formal take over offer to C$0.75 from C$0.59 per share. Frontera ended the day up C$0.10 to C$0.78.

Drill results from the Border coal project in Saskatchewan sent shares of Goldsource Mines lower. Out of 18 core holes, five encountered thick intervals of core including a 50.9 metre section. Goldsource ended the day down C$0.57 at C$1.42.

In need of cash, Minera Andes inked a deal with Robert McEwen that would see the founder of Goldcorp (AMEX:UXG) take down 121.2 million shares at C$0.33 per share for a cool C$40 million. Minera ended the day up C$0.12 at C$0.49.

Red Back Mining posted record production in the fourth quarter for its mines in Mauritania and Ghana. Cash operating costs came in at an enviable $393 per ounce for the 72,664 ounces of gold. Despite the good news, Red Back followed the price of gold lower by ended the day down C$0.29 at C$6.81.

Shares of Kinbauri Gold added C$0.03 to close at C$0.42 after the company reported that a scoping study for its El Valle-Carles gold-copper project in northwestern Spain yields a net present value at a 10 per cent discount of $132 million and an internal rate of return of 42 per cent.

The buy side interest in resource stocks remains at favourable levels but with unemployment in North America soaring one has to wonder how long the optimism will last. We will see what Tuesday trading has in store.

Source: Resource Stock Roundup: Tuesday, February 10th, 2009

Resource Stock Roundup Monday, November 24th, 2008

Doug Casey — Mon, 24 Nov 2008 12:53:54 +0000

Coming off the worst one day drop since 1987, the Canadian Markets managed to bounce off the mat during Friday’s session. For the tale of the tape, the TSX Exchange added 5.58%, while the TSX Gold Index surged 27.4% and the TSX Venture Exchange, Canada’s largest junior exploration bourse, gained 1.72% with the declining issuers outpacing the advancers by a 419 to 397 margin on volume of 153 million shares traded.

HudBay Minerals and Lundin Mining have agreed to join forces in an effort to fight the current downtrend. Under the proposal, Lundin shareholders will get 0.3919 of a Hudbay share for each Lundin share held. Hudbay ended the day down C$2.07 at C$3.16, while Lundin added C$0.04 to close at C$1.05.

Finally, a sign that there is equity financing out there for the right deal, Red Back Mining has entered into a bought deal comprising 17.15 million shares at C$3.50 a piece for a cool C$60.02 million. Red Back ended the day up C$0.60 at C$4.60.

Osisko Mining continues to hit the goods at the South Barnat zone near is its Canadian Malartic deposit in Quebec. The latest results included 185.2 metres grading 1.97 grams gold per tonne. Osisko ended the day up C$0.13 at C$1.70.

Shares of Katanga Mining added C$0.01 to C$0.39 after reporting that the depressed price of cobalt has resulted in the temporarily suspension of mining operations at the Tilwezembe open pit and ore processing at the Kolwezi concentrator in the Democratic Republic of the Congo.

The trading week ended on a positive note with news of a large equity financing indicating there is money out there that will to be put to work for the right assets. We will see what Monday trading has in store.

Source: Resource Stock Roundup Monday, November 24th, 2008