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Canadian small/micro-cap weekend roundup

Stockhouse Editorial
0 Comments| May 28, 2011

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On Monday, Canadian stock markets were closed for the Victoria Day holiday.

In Tuesday trading, Tinka Resources (TSX: V.TK, Stock Forum) shares climbed 28% to 64 cents after the micro cap miner said diamond drilling has begun at its Colquipucro silver project in Peru. The first of two holes will total approximately 700 metres depth, and following the completion of these holes, the rig will move to Zone 1 to test the northern extension of the NI 43-101 compliant resource, drilling a minimum of five holes and approximately 500 metres.

As well, shares of Vast Exploration (TSX: V.VST, Stock Forum) shot up 19% to 31.5 cents as the independent oil and gas company provided an update on the Niko Resources operated Qara Dagh Block in the Kurdistan Region of Iraq. Drilling of the first exploration well on the Qara Dagh Block has reached a total depth of 3,908 meters. Drilling operations have been completed and logging of the open hole Cretaceous section below 3,558 meters has been initiated. Subsequent to the completion of the logging operations, a flow test program will begin. The consortium partners have agreed to conduct a minimum of three tests across prospective intervals. The testing program is anticipated to be completed, and results available by end of June. Vast Exploration holds a net undivided 37% working interest in the block.

Wednesday’s market action saw shares of Cinch Energy (TSX: T.CNH, Stock Forum) jump 39% to $1.76 as the oil and gas junior said it has entered into an arrangement agreement with Tourmaline Oil Corp., pursuant to which Tourmaline has agreed to acquire all of the issued and outstanding common shares of Cinch, including any shares of Cinch issued upon the exercise of outstanding options, for 0.06366 of a Tourmaline common share for each Cinch share held. Based on a five-day volume weighted average trading price of the Tourmaline shares ending May 20, 2011 of $27.80, the consideration to be received by Cinch shareholders equals $1.77 per share, or a total consideration of approximately $205 million, including net debt.

Yukon-Nevada Gold (TSX: T.YNG, Stock Forum), meanwhile, announced that its Jerritt Canyon Mine in Nevada produced 14,477 ounces of gold from purchased ore, stockpiles and mining operations during the first quarter. The operations underperformed as a result of the ongoing severe winter conditions and resulting shut downs that arose due to these conditions and a materials and supplies shortage. The company recorded a first-quarter profit of $28.9 million, compared with a loss of $41.9 million a year earlier. The profit was a result of a $51.0 million gain in the fair value of warrants recorded as derivative liabilities. Yukon-Nevada stock popped 32% to 56 cents.

On Thursday, Kimber Resources (TSX: T.KBR, Stock Forum) shares surged 36% to $1.65 after the miner reported results of a further eight drill holes from its ongoing drill program at the Carmen Deposit at its Monterde Project in Mexico, which included 5.2 metres of 51.9 grams per tonne (g/t) gold and 1,076.7 g/t silver.

Also, shares of Brandenburg Metals (TSX: V.BBM, Stock Forum) moved up 25% to 40 cents as the explorer said it has signed a joint venture letter of intent with Houston-based Holloman Energy, pursuant to which the company can earn an undivided 44% working interest in two onshore concessions known as Petroleum Exploration License 112 and Petroleum Exploration License 444 (PELs). The PELs cover 1,125,000 acres in South Australia's Cooper Basin Western Flank Oil Play. The Department of Primary Industries and Resources of South Australia reports that the Cooper Basin has sourced over four billion barrels of oil and five trillion cubic feet of recoverable gas.

And, in Friday trading, El Tigre Silver Corp. (TSX: V.ELS, Stock Forum) was up 21% to 41 cents after announcing assay results from the Gold Hill Exploration target at the company’s mining concession in Sonora, Mexico. CEO Stuart Ross said the latest results will help exploration crews to define targets for a 5,000-metre drill program that is expected to start this summer. Highlights include 11.24 metres of 129 grams silver per tonne and 4.49 metres of 296 grams silver per tonne.

Biosign Technologies Inc. (TSX: V.BIO, Stock Forum), also gained 20% to $1 after announcing three new appointments to its board of directors. They include former U.S. Senator Alfonse D’Amato, Harold Koplewicz and Jason Meretsky. “As Biosign embarks on an exciting period of change and growth, attracting a diverse range of leadership for our board and management team is critical to our success,’’ said Biosign Chairman David Silver in a release.



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