Stockhouse Canadian Small and Micro-cap Stock Report for Friday, May 8, 2009
TORONTO (SHfn) – Rising production and falling costs boosted a small gold play Friday, while gas drilling generated much speculation.
La Mancha Resources (TSX: T.LMA, Stock Forum) shares climbed 29% to 66 cents on Friday after the micro cap miner said it produced 18,515 ounces of gold at an average cash cost of US$451 per ounce during the first quarter of 2009 compared to 16,260 ounces of gold at an average cash cost of US$534 per ounce during the same quarter last year. The increase in production is due to the start of production at the Australian Frog's Leg mine and an improved performance at the Ity mine in Africa. The company says its Australian mine is now cash-flow positive and profitable.
As well, shares of Probe Resources (TSX: V.PBR, Stock Forum) shot up 33% to 14 cents as the oil and gas explorer reported that it has commenced the drilling of its East Cameron 37 prospect in the U.S. Gulf of Mexico. Total prospective gross resource estimate is 35 billion cubic feet of gas equivalent (BCFE). Probe holds a 52% working interest (WI) and 36.4% net revenue interest (NRI) prior to project payout (BPPO) and a 41.6% WI and 30.784% NRI after project payout (APPO) in the project area.
Polaris Minerals (TSX: T.PLS, Stock Forum), meanwhile, announced that the net loss for its first quarter was $1.40 million, or three cents a share, compared with a net loss of $2.46 million, or seven cents a share, during the same period last year. At March 31, 2009, the company had cash and cash equivalents of $6.36 million, working capital of $11.81 million and had no long-term debt, having repaid its $20 million bridge loan during the quarter. Polaris Minerals stock popped 19% to $2.38.
Shares of WebTech Wireless (TSX: T.WEW, Stock Forum) surged 23% to $1.23 after the provider of location-based and fleet telematics services said it has delivered 5,000, model WT5000 Series Locators to Sat Company, a local service provider based in Sao Paulo, Brazil. WebTech Wireless has supplied the hardware and will earn a recurring monthly fee as the Locators are installed.
And, Underworld Resources (TSX: V.UW, Stock Forum) late Thursday reported that that drilling has begun at its 100% owned White Gold Property in the Yukon Territory. The company has doubled the scale of the 2009 drill program to aggressively step-out along strike and down-dip of the thick intervals of gold mineralization discovered during the summer of 2008 at the Golden Saddle Zone. Its shares jumped 13% to 70 cents on Friday.
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