Stockhouse Canadian Small and Micro-cap Stock Report for Monday, August 30, 2010
TORONTO (SHfn) – Sterling Resources (TSX: V.SLG, Stock Forum) shares climbed 23% to $2.33 on Monday after the oil and gas producer/explorer announced the “successful” drilling of the Cladhan sidetrack well located on Block 210/29a in the United Kingdom North Sea, some 225 miles north east of Aberdeen, Scotland, in 536 feet water depth. Sterling holds a 39.9% interest and is the operator of the License P1064. The sidetrack was drilled to a total depth of 11,215 feet, encountering a gross hydrocarbon column of 159 feet with 102 feet of net hydrocarbon bearing sandstones compared to the discovery well, which had 31 feet of net pay with 36 degrees API oil.
"These results so far exceed our expectations of the quality and extent of the channel sand in this area of the Cladhan reservoir," stated Sterling's President and CEO Mike Azancot. "We are confident that results from the imminent DST operations will confirm commerciality of the Cladhan field. The next phase of the appraisal program will be to confirm the additional extent of the reservoir by drilling down dip looking for the oil water contact."
As well, shares of AuEx Ventures (TSX: T.XAU, Stock Forum) shot up 26% to $5.69 as the junior miner said it has entered into an arrangement agreement under which Fronteer Gold (TSX: T.FRG, Stock Forum) will acquire 100% of the outstanding common shares of AuEx by way of a plan of arrangement. Under the plan of arrangement, AuEx shareholders will receive 0.645 of a Fronteer Gold share, 66 cents in cash and 0.5 of a share in a new exploration company (SpinCo) for each AuEx share. The total consideration of this transaction is about $280.8 million.
Gold Canyon Resources (TSX: V.GCU, Stock Forum, Stock Forum), meanwhile, reported results for holes SP10-009 and SP10-011 at its 100% controlled Springpole Gold Project located in the Red Lake Mining District of Ontario, which included 94.0 meters at 2.51 grams per tonne (g/t) gold. Gold Canyon stock popped 11% to 50 cents.
And, Belvedere Resources (TSX: V.BEL, Stock Forum) Monday announced new results from resource delineation drilling at its 100% owned Kopsa gold project in Finland, which included individual assays up to 48.4 g/t (1.56 oz/t) gold amongst large intervals of lower grade gold copper mineralization. Belvedere shares added 13% at 27 cents.
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