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Canadian small/micro-cap weekend roundup

Stockhouse Editorial
0 Comments| January 9, 2010

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On Monday, Petroflow Energy (TSX: T.PEF, Stock Forum) shares climbed 49% to 36.5 cents on Monday after the oil and gas producer/explorer said it has sold its Permian Basin properties in Texas. The Texas Properties consist of 3640 gross and net developed acres. Petroflow had a 100% working interest in 14 producing oil wells on the Texas Properties that produced about 65 BOEs (390 McfGEs) per day of production. The sale had an effective date of December 1, 2009. Petroflow will use the gross cash proceeds of US$3.3 million from the sale to reduce its outstanding indebtedness under its Amended and Restated Credit Agreement.

As well, shares of Berens Energy (TSX: T.BEN, Stock Forum) shot up 32% to $2.67 as the energy junior reported that it has entered into a definitive amalgamation agreement with PetroBakken Energy Ltd. and a wholly-owned subsidiary of PetroBakken pursuant to which PetroBakken will indirectly acquire all of the issued and outstanding common shares of Berens on a fully diluted basis for a cash consideration of $2.70 per Berens share. The transaction, including indebtedness of about $65 million, is valued at $336 million.

In Tuesday trading, Happy Creek Minerals (TSX: V.HPY, Stock Forum) shares jumped 58% to 28.5 cents on Tuesday after the micro cap explorer announced that further to the press release dated November 12, 2009, it has received final results from its 2009 drill program on the 100% owned Rateria property in south central British Columbia, which included 48.0 metres containing 0.30% copper and 0.07 g/t (grams per tonne) gold.

Also, Condor Resources (TSX: V.CN, Stock Forum) shares soared 94% to 33 cents after the junior miner reported the discovery of gold-silver mineralization at several locations on its Pucamayo property in Peru. Gold values up to 86.6 grams per tonne (g/t) over three metres and 5.85 g/t over 10 metres have been discovered in the West Zone, which zone includes a 1.5 kilometre long, subvertical multi-phase banded quartz vein of over 15 metres in width.

Wednesday’s market action saw shares of Mirasol Resources (TSX: V.MRZ, Stock Forum) shares surged 31% to $2.25 on Wednesday after the micro cap miner reported the discovery of a new silver vein, the Julia vein, part of the Virginia vein zone located on a 100% Mirasol-owned mineral property in Santa Cruz province, Argentina. The average silver grade of the initial 30 samples is 645 grams per tonne (g/t) (18.8 troy ounces per short ton), but sampling indicates that segments of the vein may contain higher silver grades, perhaps over 1,000 g/t silver.

In addition, shares of Canarc Resource (TSX: T.CCM, Stock Forum) gained 19% to 16 cents as the junior explorer announced that an updated NI 43-101 preliminary economic assessment report on the New Polaris gold mine project in British Columbia has significantly improved the estimated project economics for an 80,000 ounces per year gold mine. Using new base case parameters for the gold price (US$900 per oz), $CDN /$US exchange rate (0.95) and cash costs (US$383 per oz), the updated PEA generates a discounted (5%) after-tax Net Present Value of CDN$68.6 million with an after-tax Internal Rate of Return of 25.8% and a 2.7 year pay-back period.

On Thursday, North Arrow Minerals (TSX: V.NAR, Stock Forum) shares powered 28% higher to 20.5 cents on Thursday after the micro cap explorer reported additional assay results from recent drilling at its wholly-owned Beaverdam lithium project in North Carolina, which included 12.0 metres grading 1.18% Li2O.

Meanwhile, Exile Resources (TSX: V.ERI, Stock Forum) shares jumped 44% to 18 cents after the oil and gas explorer/producer reported results of the well test and completion of the Akepo-1 ST discovery in Nigeria. The drilling rig was demobilized on January 5, 2010, after a 50-day well testing and completion program on the Akepo field. Drill Stem Tests (DST) proved flowing hydrocarbons in all the three targeted reservoirs. The lowermost D6 sand tested at 1200 barrels of 43 degree API oil per day through a 20/64 inch choke, with low Gas Oil ratio (GOR). The D1 sand tested at 1170 barrels oil per day of 23 degree API oil through a 20/64 inch choke with low GOR, and the C1 sand tested at 570 barrels oil per day of 20 degree API oil through 20/64 inch choke with low GOR.

And, in Friday trading, Northern Gold Mining (TSX: V.NGM, Stock Forum) shares climbed 55% to 29.5 cents on Friday after ValGold Resources (TSX: V.VAL, Stock Forum) reported drill results for the first two holes of the 2009 program on its 100% owned Garrison property in northern Ontario. Northern Gold Mining is the project operator and is currently in the first year of an option agreement under which it is earning its initial 50% interest in the Garrison property from ValGold by making $4 million in exploration expenditures and paying ValGold $1 million in option payments within the next four years. Assays included 22.0 metres of 4.21 grams per tonne (g/t) gold.

Finally, shares of Millrock Resources (TSX: V.MRO, Stock Forum) shot up 35% to 29 cents as the micro cap explorer said it has signed a letter of intent to enter into an Option to Joint Venture Agreement with Inmet Mining (TSX: T.IMN, Stock Forum) concerning Millrock's San Jose and Dry Mountain copper/gold claims in Arizona. The agreement will give Inmet the opportunity to earn a 70% interest in the two claim blocks by spending US$4.0 million in exploration expenditures and making option payments of US$300,000. The 2010 exploration expenditure commitment is US$500,000 and the initial payment is US$50,000. Millrock will be the exploration operator for the first year of exploration and thereafter at Inmet's option.



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