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Resource Stock Roundup: Thursday, June 11th, 2009

Doug Casey — Thu, 11 Jun 2009 19:25:49 +0000

The resource rich Canadian markets took a breather during mid-week trading. For the tale of the tape, the TSX Exchange added a modest 0.48%, while the TSX Gold Index lost another 0.5% and the TSX Venture Exchange, Canada’s largest junior exploration bourse, gave back 0.14% with the decliners edging out the advancers by a 433 to 425 margin on a robust 225 million shares traded.
Yamana Gold (NYSE:AUY) sold three of its non-core operating mines to Aura Minerals for a cool $90 million in cash, $70 million in deferred cash payments and $40 million in Aura stock. The first part of the sale includes the San Andres mine in Honduras and that nets the major US$74 million. The second part, which is expected to close by year-end, is the sale of the Sao Francisco and Sao Vicente mines in Brazil. Yamana ended the day down C$0.42 at C$11.24, while Aura closed at C$0.52 for a C$0.08 gain.

Shares of Crowflight Mines added C$0.065 to close at C$0.305 after the company announced that commercial production has started at it Bucko Lake nickel mine in Manitoba.

Arcus Development Group got a boost after Atac Resources granted Arcus an option to acquire a 50% interest in the Green Gulch, Touleary, Dan Man and Shamrock gold prospects, collectively referred to as the Dawson gold project. The Green Gulch claims are wholly surrounded by Underworld Resources White Gold discovery property. Arcus added C$0.05 to close at C$0.13, while Atac lost C$0.025 to close at C$0.325.

The deals continue to flow but the overall market still seems to be getting tired after its strong run up over the past few months. We shall see what Thursday trading has in store.
Source: Resource Stock Roundup: Thursday, June 11th, 2009

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:Friday, May 29th, 2009

Doug Casey — Fri, 29 May 2009 19:39:06 +0000

Despite a notable lack of news, the Canadian markets continued to surge higher during Thursday trading. For the tale of the tape, the TSX Exchange added 2.5%, while the TSX Gold Index tacked on 1.80% and the TSX Venture Exchange, Canada’s largest junior exploration bourse, rallied 1.11% with the advancers beating out the decliners by a 458 to 354 margin on 172 million shares traded.

Shares of Underworld Resources built on Wednesday’s C$0.36 gain by adding another C$0.15 to close at C$1.56. News is spreading on the size potential of its Golden Saddle zone at the White Gold property that recently returned 3.39 grams gold per tonne over 104 metres.

San Gold continued to turn out the numbers from its Hinge zone in Manitoba. The latest included 37 grams gold per tonne over 3.9 metres. San Gold closed up C$0.08 at C$2.44.

Cash rich Raytec Metals inked a farm-out agreement with Africa Oil to earn into the production sharing contracts in both the state of Puntland, Somalia, and the Republic of Kenya. In Somalia, Africa Oil will transfer a 25-per-cent licence interest to Raytec in the Nogal and Dharoor petroleum production sharing agreements, while in Kenya, Africa Oil will transfer a 10-per-cent interest in the block 9 production sharing agreement and a 25-per-cent licence interest in its other interests in Kenya. Raytec was halted from trading prior to the news at C$0.37.

The markets are back rocking, with the junior board breaching the 1,100 point mark. We shall see what Friday trading has in store

Source: Resource Stock Roundup:Friday, May 29th, 2009

Resource Stock Roundup:Thursday, May 28th, 2009

Doug Casey — Thu, 28 May 2009 19:29:45 +0000

It was a day of profit taking during Wednesday trading on the Canadian Markets. For the tale of the tape; the TSX Exchange lost 1.40%, while the TSX Gold Index dropped 1.80% and the TSX Venture Exchange, Canada’s largest junior exploration bourse, fell 0.38% with the decliners beating out the advancers by a 417 to 404 margin on 182 million shares traded.
Shares of Underworld Resources soared C$0.36 to close at C$1.41 on good volumes after the junior tabled results from the first three holes from the 2009 drilling program from the Golden Saddle zone at the White Gold property. Highlights included 3.39 grams gold per tonne over 104 metres.

Golden Band Resources got ministerial approval for its La Ronge gold project in Saskatchewan. The junior closed at C$0.25 for a C$0.04 gain.

It was a rough day for Uranium One as the miner reported that Kazakhstan authorities are conducting an investigation into certain of the activities of Kazatomprom, the Kazakh state-owned uranium mining company. Uranium One’s Kazakh assets were acquired in November, 2005, from a group of Kazakh investors by UrAsia Energy, which became a subsidiary of Uranium One in April, 2007. Kazatomprom owns 30% of the Kyzylkum joint venture. Uranium One ended the day down C$1.30 at C$1.99.

The energy and information technology sectors of the index were the only ones to end the day in the black. We shall see what Thursday trading has in store.

Source: Resource Stock Roundup:Thursday, May 28th, 2009

Resource Stock Roundup:Wednesday, May 27th, 2009

Doug Casey — Wed, 27 May 2009 19:51:20 +0000

The Canadian Markets continued to march higher with the Bank of Montreal posting better than expected earnings for the second quarter of 2009. For the tale of the tape, the TSX Exchange added 2.15%, while the TSX Gold Index gave back 0.4% and the TSX Venture Exchange, Canada’s largest junior exploration bourse, tacked on 0.07% with the decliners beating out the advancers by a 440 to 398 margin on 171 million shares traded.

Shares of Gold Reserve (AMEX:GRZ) have stabilized after reports came in that Venezuela terminated Gold Reserve’s concession for the large Brisas project. Rumours are now that Rusoro, which launched a failed takeover bid for Gold Reserve last year, may now end up in partnership with the Venezuelan government on the property. Gold Reserve ended the day flat at C$0.65.

Rimfire Minerals and Geoinformatics Exploration are looking to wed. Geoinformatics is coming off a failed merger with Southwestern Resources. Under the Rimfire deal, Geoinformatics will acquire Rimfire on the basis of 2.6 of Geoinformatic shares for each Rimfire share. Rimfire lost C$0.02 to close at C$0.40, while Geoinformatics added C$0.055 at C$0.225.

Linear Gold went shopping and bought the Goldfields project in Saskatchewan from financially plagued GLR Resources. The roughly 600,000 ounce reserve of 10.9 million tonnes grading 1.7 grams gold per tonne will cost $5.0 million in cash and 727,273 Linear Gold shares, plus Linear with will reimburse GLR for deposits made in connection with the equipment contracts in the amounts of $3 million and C$1.2 million. Linear Gold closed up C$0.23 at C$1.44.

Denison Mines (AMEX:DNN) went to the market and inked a C$82 million bought deal financing priced at C$2.05 per share. That was well below market so the uranium producer closed down C$0.28 to C$2.11.

A stock to watch is Underworld Resources. After the bell, the junior reported the results from the first three holes from the 2009 drilling program from the Golden Saddle zone at the White Gold property. Highlights included 3.39 grams gold per tonne over 104 metres. Underworld ended the day up C$0.11 at C$1.05.

The interest in commodity stocks continues to be strong and that has pushed Canada’s big board well above the 10,000 point mark. We shall see what Wednesday trading has in store.

Source: Resource Stock Roundup:Wednesday, May 27th, 2009