Junior miner powers higher on copper resource estimate

Stockhouse Canadian Small and Micro-cap Stock Report for Wednesday, August 24, 2011

TORONTO (SHfn) – Lions Gate Metals (TSX: V.LGM, Stock Forum) shares surged as much as 35% to 65 cents on Wednesday after the micro cap miner reported that its 100% owned Poplar Project in British Columbia has an Inferred Resource of 245 million tonnes averaging 0.27% copper, containing over 1.4 billion pounds of copper at a 0.15% copper cut-off.

As well, shares of Victory Nickel (TSX: T.NI, Stock Forum) gained 22% to 11 cents as the junior miner said it has been granted by the Manitoba government the Environment Act License for the construction, operation and subsequent decommissioning of the 100%-owned Minago Sulphide Nickel Project in Manitoba.

New Zealand Energy (TSX: V.NZ, Stock Forum), meanwhile, announced that its 100%-owned Copper Moki-1 well production in New Zealand tested the Mt. Messenger formation over a 48-hour period and flowed 41.8 API(1) oil at a consistent rate of 1,100 barrels per day along with 855 mcf(2) per day of natural gas. New Zealand Energy stock popped 21% to $1.25.

And, JBZ Capital (TSX: V.JBZ, Stock Forum) Tuesday reported that its wholly-owned subsidiary, Strata Minerals, has entered into a form of letter of intent agreement with Australia’s Universal Splendour Investments Pty Ltd (USI) in connection with USI's potash exploration project in Australia. Strata has an exclusive three month period to conduct due diligence on the project, following which Strata has the option to enter into a joint venture with USI to explore and develop the project. Under the proposed terms of the JV, Strata can earn a 90% interest in the project in exchange for spending AUD$250,000 on exploration and issuing USI one million common shares of JBZ at a deemed price to be determined by the market price of JBZ's common shares at the time of issuance. JBZ Capital shares rose 43% to 10 cents on Wednesday.

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