Junior explorer jumps on copper feasibility study update

Stockhouse Canadian Small and Micro-cap Stock Report for Monday, June 20, 2011

TORONTO (SHfn) – Bell Copper (TSX: V.BCU, Stock Forum) shares climbed 11% to 21 cents on Monday after the micro cap explorer reported that work continues on the previously announced feasibility study at its wholly-owned La Balsa project in Mexico for the mining of low strip-ratio, surface breccia copper resources. This work follows a March 2010 Scoping Study, which projected annual production of 21 million pounds of copper per year over a seven-year mine life, with cash costs of US$0.81/lb and all-in costs (including capital, and the use of the company's previously purchased SX-EW processing plant) of $1.22/lb.

As well, shares of Culane Energy (TSX: V.CLN, Stock Forum) shot up 30% to $2.24 as the oil and gas explorer said it has entered into an agreement whereby Killam Acquisition Company will acquire all of the issued and outstanding common shares of Culane for cash consideration of $2.32 per Culane share, or a total consideration of $78.7 million, including the assumption of $13.8 million of net debt.

Cornerstone Capital Resources (TSX: V.CGP, Stock Forum), meanwhile, announced that the Ministry of Environment of Ecuador has granted the formal environmental license for all portions of the Loma Quinuas, Aguarongos and Gama Norte concessions that constitute the Gama prospect on Cornerstone's flagship Shyri gold-silver-copper property. The license is valid for the four-year advanced exploration phase of the three concessions. Cornerstone Capital stock popped as much 12% to 29 cents.

And, Passport Potash (TSX: V.PPI, Stock Forum) Monday reported preliminary results from two core holes that have intersected potash deposits at relatively shallow depths in the Holbrook evaporite basin in Arizona, which included a 2.5 foot interval containing 24.34% KCL (potassium chloride). Passport shares slipped 11% to 59 cents.

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