Canadian small/micro-cap roundup

Stockhouse Editorial
0 Comments| December 13, 2013


Stock movers for the week of December 9, 2013:
 
On Monday, Canadian Zinc Corp. (TSX: T.CZN, Stock Forum) slipped 1.3% to 39 cents after the exploration and development company reported assay results from the 2013 diamond drill exploration program on the Prairie Creek mine site property in the Northwest Territories. As part of the drilling program 1,472 metres were completed over five holes. Exploration focused on two areas: firstly, the multi-stacked electromagnetic geophysical anomaly identified in 2012, approximately 900 metres from the mill site, and, secondly, a small exploratory drill program immediately adjacent to the existing concentrator plant. Results included 5.1 metres grading 5.3% lead, 12.1% zinc and 98 grams per tonne silver, 2.9 metres of 6.7% lead, 12.3% zinc and 116 grams per tonne silver and 5.l metres at 8.0% lead, 13.2% zinc and 144 grams per tonne silver.
 
Orbite Aluminae Inc. (TSX: T.ORT, Stock Forum) was down 8.0% to 40.5 cents after announcing that, further to deteriorating market conditions since the pricing of its contemplated public offering of units on Nov. 8, 2013, it has filed an amended and restated final short form prospectus providing revised pricing of its marketed offering of units. As a result of today's prospectus filing, the offering will close on Dec. 10, 2013. Each unit consists of $1,000 principal amount of 7.5% unsecured unsubordinated debentures and 875 share purchase warrants, such principal amount of debentures is convertible into shares at a price of $0.40 per share (instead of $0.465) and each warrant is exercisable into one share of the corporation at a price of $0.48 (instead of $0.558). The revised pricing is based upon the volume weighted average prices for the previous days. The other terms of the offering remain unchanged. The net proceeds from the offering will be used to complete the corporation's high-purity alumina plant located in Cap-Chat, Quebec, and for general corporate and working capital purposes.
 
 
On Tuesday, Lake Shore Gold Corp. (TSX: T.LSG, Stock Forum) gained 14.8% to 46.5 cents after the gold miner provided updated guidance for 2014, including target gold production of 160,000 to 180,000 ounces. Previously, the company had indicated a target range for annual production of 140,000 to 160,000 ounces. Other guidance for 2014 includes cash operating cost per ounce sold between US$675 and US$775 and all-in sustaining cost per ounce sold between US$950 and US$1,050. "Our strong performance has positioned us to increase our production guidance for 2014,” said Tony Makuch, President and CEO.  “Looking at our costs, we are a low-cost producer and believe that more progress on this front is achievable. We have strengthened our balance sheet, both through internally generated cash flow and by repaying debt. By the end of this month, we will have repaid around $15 million of debt in 2013 and will further reduce our debt levels going forward."
 
Trevali Mining Corp. (TSX: T.TV, Stock Forum) climbed 4.7% to 89 cents as investors assessed the news that the base metal mineral exploration and development company’s drilling has expanded mineralization in Peru. Trevali announced the results of three additional holes drilled on the deeper levels of the newly discovered Rosa Zone at its Santander Mine in Peru. All three diamond drill holes have intersected significant high-grade lead-silver-zinc mineralization at depth, further expanding the size of the Rosa Zone. Drilling also intersected a sub-parallel replacement or Manto zone that also returned high lead and zinc values over potentially mineable intervals. All mineralization remains open for expansion at depth. Drilling results included 9.7 metres of 163.1 grams per tonne silver, 7.89% lead and 8.29% zinc and 30.69 metres of 78.1 grams per tonne silver, 3.86% lead and 4.01% zinc.
 
 
On Wednesday, Forum Uranium Corp. (TSX: V.FDC, Stock Forum) climbed 10% to 34.5 cents as investors assessed the news that the energy company has successfully completed a ground gravity survey and generated approximately 11 drill targets on its Clearwater property. The Clearwater property is located on trend and immediately adjacent to the southwest of Fission Uranium Corp.’s (TSX: V.FCU, Stock Forum) Patterson Lake South (PLS) discovery on the Saskatchewan side of the Athabasca Basin. Forum plans to follow-up with a ground EM survey early in January to prioritize drill locations for the conductive zones. This combination of geophysics and geochemistry will enable Forum's technical team to more accurately define and locate drill holes on the most favourable uranium targets.
 
Starcore International Mines Ltd. (TSX: T.SAM, Stock Forum) was up 6.3% to 17 cents. The stock is reacting to news of the resource company’s first quarter report ended Oct. 31, 2013. Income for the quarter was $2.3 million, or $0.02 per share compared to a loss of $346,000 or $(0.00) per share for the prior year. Ore grades at the San Martin mine in Queretaro, Mexico, improved significantly for the quarter to 2.89 grams per tonne gold and 27.0 grams per tonne silver, and recovery improved in the first quarter averaging 88.2% and 56%, respectively, well over the results from the prior year when the mine was experiencing recovery and grade issues.
 
In Thursday trading, Mercator Minerals Ltd. (TSX: T.ML, Stock Forum) climbed 100% to nine cents as investors assessed the news that the resource company and Intergeo MMC Ltd., a privately held mineral resource company, have been combined to create a new copper-focused base metal company. In connection with the transaction, Daselina Investments Ltd., Intergeo's controlling shareholder, has agreed to invest US$100 million plus an amount equal to the accrued interest under the bridge loan via a private placement in the combined company at a subscription price of US$0.1224 per share.
 
Corex Gold Corp. (TSX: V.CGE, Stock Forum) rose 25% to 7.5 cents after the exploration junior announced results from drill hole SNT-DH0001 provided by its joint venture partner Vale Exploraciones Mexico S.A. de C.V., a subsidiary of Vale S.A. (NYSE: VALE, Stock Forum).This first hole of a 4,000 metre first phase drill program has intersected a significantly mineralized copper-gold-silver system in the Benjamin zone at the company's Santana property, Sonora, Mexico. Hole SNT-DH0001 intersected 49 metres averaging 1.50% copper, 0.37 grams per tonne gold and 97.49 grams per tonne silver.
 
 
And, on Friday, Carpathian Gold Inc. (TSX: T.CPN, Stock Forum) rose 25% to 7.5 cents after the exploration and development company announced that its subsidiary, Mineração Riacho dos Machados Ltda., which owns and operates the RDM gold project, Brazil, has received from the state environmental agency the Autorização Provisória de Operação (APO), a provisional permit, allowing it to proceed with the full operation of its gold producing facilities. The APO provides the same legal rights as the Licença de Operação (LO) and allows the project to proceed in the interim while arrangements are being performed by the government agencies and related entities for the issuance of the LO. "While the unfortunate delay in the start-up of the operation may have affected the outlook for the company and led to a cash shortfall situation, it is nonetheless a pleasure to report that with the receipt of the APO the RDM gold project can now commence gold production and be Brazil's next gold producer", said Dino Titaro, Chairman and CEO. "With the wet commissioning of the mill and process plant, the project is now ready to receive and process ore from the mine, with the expectation of its first gold pour within two weeks.”
 
Primeline Energy Holdings Inc. (TSX: V.PEH, Stock Forum) slipped 5.3% to 54 cents. The stock is reacting to news that oil and gas junior’s subsidiary, Primeline Energy Operations International Ltd. (PEOIL) has entered into a turnkey contract for a 600 square kilometres 3D seismic survey as part of its rolling development and exploration program. A brokered private placement is proposed to fund the company's share of the cost of the survey. PEOIL has entered into an agreement dated Dec. 13, 2013 with China Oilfield Services Ltd. (COSL), an oilfield services provider, under which COSL agreed to carry out the acquisition and processing of data for the survey on a turnkey basis for Primeline. Under the Turnkey contract, COSL will complete the acquisition of 3D seismic data over 600 square kilometres in Block 33/07 using 3D seismic survey vessel, Hai Yang Shiyan 718. The survey is expected to be completed by mid-April 2014. Following completion of the survey, COSL will also be responsible for processing the data acquired. COSL will supply all necessary equipment, services and personnel for the survey.


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