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Resource Stock Roundup:Thursday, July 9, 2009

Doug Casey — Thu, 09 Jul 2009 22:30:59 +0000

The selloff in commodity-related stocks continued with a vengeance during Wednesday trading on the Canadian Markets. For the tale of the tape; the TSX Exchange was down 1.94%, while the TSX Gold Index fell 3.8% and the TSX Venture Exchange, Canada’s largest junior exploration bourse, plunged 3.32% with the decliners swamping the advancers by a 593 to 248 margin on a modest 168 million shares traded.
Shares of Atac Resources gave back C$0.03 of yesterday’s C$0.19 gain to close at C$0.60. Atac reported a drill intercept of 24.07 grams gold per tonne over 28.04 metres including 5.34 metres of just over 100 grams gold per tonne from its Rau project in the Yukon.

Mercator Minerals shipped 9,091,708 pounds of copper, 418,987 pounds of molybdenum and 56,441 ounces of silver from its Mineral Park Mine in Arizona during the second quarter. In the process the company generated $5.7 million in earnings before interest, taxes, depreciation and amortization. Despite the news, Mercator failed to fight the downdraft in the market as the company ended the day down C$0.08 at C$1.13.

Exeter Resource (AMEX:XRA) tabled an inferred resource of 646,000 ounces of gold equivalent, which comprises 371,000 ounces of gold at a grade of 10.5 grams gold per tonne and 19.2 million ounces of silver at a grade of 545 grams silver per tonne at its Cerro Moro project in Argentina. Exeter ended the day down C$0.21 at C$3 even.

Bucking the down trend on no new developments was Quest Uranium. Rumours are that the company is attracting big player interest thanks to their Strange Lake rare earth project in Quebec. Quest ended the day up C$0.13 at C$0.425

The falling price of oil and bullion is putting immense pressure on the resource rich Canadian markets. We shall see what Thursday trading has in store.

Source: Resource Stock Roundup:Thursday, July 9, 2009

Resource Stock Roundup: Monday, February 9th, 2009

Doug Casey — Mon, 09 Feb 2009 19:14:24 +0000

Poor employment data out of both the United States and Canada failed to stymie investor sentiment as the Canadian markets rallied for a third straight day during Friday trading. For the tale of the tape, the TSX Exchange surged 1.66%, while the TSX Gold Index rallied 1.4% and the TSX Venture Exchange, Canada’s largest junior exploration bourse, added 1.24% with the advancing issuers edging out the decliners by a 390 to 315 margin on 133 million shares traded.

Silverstone Resources sold 1,669,000 ounces of silver in 2008. The silver-gold royalty company recently purchased all of the payable gold and silver from the Minto mine in the Yukon and received advance payments on approximately 3,700 ounces of payable gold and 33,000 ounces of payable silver from the Minto mine as at Dec. 31, 2008, which will be recorded in the first quarter. Silverstone ended the day up C$0.09 at C$0.94.

Coming off of more hot results from its Caspiche gold copper project in Chile, Exeter Resources (AMEX:XRA) locked in a bought deal financing of C$25.2 million by issuing 10.5 million shares at C$2.40 a piece. Exeter ended the day down C$0.07 at C$2.80.

Finally a flash from the bull market past with Can Alaska Uranium reporting grab samples of up to 46.9 grams gold, 19.7 grams platinum and 20.8 grams palladium on its Poplar project in the Athabasca Basin of Saskatchewan and its share price surged C$0.045 to C$0.17.

Speculation is that the United States will unveil a very positive economic stimulus package on Monday. After a three-day rally, if the market is disappointed with the outcome, look out below. We will see what Monday trading has in store.

Source: Resource Stock Roundup: Monday, February 9th, 2009

Resource Stock Roundup:Tuesday, February 3rd, 2009

Doug Casey — Tue, 03 Feb 2009 20:20:48 +0000

Investors started the trading week off in a selling mood with more bad economic data pushing the Canadian Markets into the red during Monday trading. For the tale of the tape, the TSX Exchange gave back 0.81%, while the TSX Gold Index fell 2.6% and the TSX Venture Exchange, Canada’s largest junior exploration bourse, lost 1.11% with the decliners issuers edging out the advancers by a 351 to 250 margin on 102 million shares traded.

Exeter Resource (AMEX:XRA) tagged an impressive 488 metres running 1.3 grams gold per tonne and 0.44% copper at its Caspiche project in Chile. Exeter ended the session up C$0.03 at C$2.78.

Shares of beaten-down Gold Hawk Resources added C$0.015 at C$0.035 after the company announced it has inked a deal to restructure its debt. Gold Hawk signed an indicative term sheet with one of its lenders to provide the Company with $2 million of new funds, repay the existing bank debt and restructure all of the loans under one new $13 million loan facility.

Central Sun Mining (AMEX:SMC) agreed to be bought by B2Gold and agreed to pay C$1 million as termination fee to Linear Gold, which had made an earlier offer. Central Sun ended the session down C$0.03 at C$0.82, B2Gold closed down C$0.09 at C$0.74 and Linear Gold added C$0.02 at C$0.97.

Mirabela Nickel got a boost after reporting that its Santa Rita project in Brazil holds proven and probable reserves of 121 million tonnes grading 0.60% nickel. Mirabela ended the day up C$0.23 at C$1.27.

Strong sell side sentiment dominated the first trading day of February, which suggests that new lows may be forthcoming. We will see what Tuesday trading has in store.

Source: Resource Stock Roundup:Tuesday, February 3rd, 2009

Resource Stock Roundup: Tuesday, December 16th, 2008

Doug Casey — Wed, 17 Dec 2008 01:25:00 +0000

The Canadian markets started the trading week off by going on their usual roller coaster ride with gains seen at the open gradually eroding into solid losses by the close of Monday trading. For the tale of the tape, the TSX Exchange fell 0.63%, while the TSX Gold Index gained 3.7% and the TSX Venture Exchange, Canada’s largest junior exploration bourse, lost 0.24% with the declining issuers beating out the advancers by a 458 to 399 margin on volume of 244 million shares traded.

After making a stink ball bid earlier in the year, Rusoro Mining has come back and is offering three of its share for every Gold Reserve (AMEX:GRZ) share. The move would alleviate Gold Reserve’s problem in Venezuela because Rusoro has the ears of the Chavez government. Rusoro ended the day down C$0.105 at C$0.255, while Gold Reserve soared C$0.28 to close at C$0.73.

Due to reduced metal demand and the persistent weakness in zinc prices, Teck Cominco (NYSE:TCK) is shutting down its Pend Oreille operations in Washington State. Teck ended the day up C$0.25 at C$5.70.

Exeter Resource (AMEX:XRA) tagged 72.76 grams gold and 6,471 grams silver per tonne over 3.36 metres at its Cerro Moro project in Argentina. Exeter ended the session up C$0.32 at C$1.95.

Sprott Resource added C$0.11 to close at C$2 after reporting that it acquired 40,475 ounces of gold bullion and 852,478 ounces of silver bullion.

It was a rather busy trading day, which suggests that the tax loss selling may be kicking in. That said, despite the modest losses, the resource sector appears to have found a floor. We will see what Tuesday trading has in store.

Resource Stock Roundup: Tuesday, December 16th, 2008