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Canadian small/micro-cap weekend roundup

Stockhouse Editorial
0 Comments| October 8, 2011

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On Monday, Ecometals (TSX: V.EC, Stock Forum) shares climbed 53% to 24.5 cents after the micro cap explorer reported what the company called “positive results” from its review of a recent discovery of visible gold in a Suarez Fm outcrop along the Rio Blanco in Ecuador in a North South oriented structure parallel to Fruta del Norte. As a result Ecometals intends to conduct accelerated exploration activities in this area. This will be carried out in conjunction with its deep drilling activity in the Misahualli - Suarez basin at Rio Blanco, where the latest drill assay results for hole 4 indicated levels of silver of 32.9 grams per tonne (g/t) over 21 metres, including 100 g/t over four metres.

As well, shares of Velocity Minerals (TSX: T.VLC, Stock Forum) added 12% at 19 cents as the junior miner announced an agreement with the holder of certain leases of an Arkansas coal project whereby Velocity can earn a 50% interest in the project in return for providing an initial US$25 million of capital to begin commercial production on the project from surface and an additional US$25 million following production of the surface portion of the project, to produce the underground portion of the project.

In Tuesday trading, Arcus Development Group (TSX: V.ADG, Stock Forum) shares jumped 36% to 15 cents after the micro cap explorer reported the discovery of what the company called the first “significant” volcanogenic massive sulphide (VMS) system in the White Gold District of north central Yukon at its Touleary property, which included 14.15 metres of 1.44% copper, 16.5 grams per tonne (g/t) silver and 0.77 g/t gold.

Also, shares of Augusta Resource (TSX: T.AZC, Stock Forum) rose as much as 10% to $3.17 as the junior miner announced that the U.S. Forest Service has completed the Rosemont Copper draft Environmental Impact Statement and that the document will be made available for public review in October 2011, initiating the 90-day public comment period. The Rosemont Copper deposit is located near Tucson, Arizona.

Wednesday’s market action saw shares of Full Metal Minerals (TSX: V.FMM, Stock Forum) surge 57% to 36 cents after the micro cap miner reported that final assay results have been received for the 2011 drilling completed at the Pyramid Porphyry Project in Alaska, which included 155.9 meters averaging 0.71% copper, 0.018% molybdenum, and 0.179 grams per tonne (g/t) gold, or 0.97% copper equivalent.

In addition, shares of Niblack Mineral Development (TSX: V.NIB, Stock Forum) shot up 38% to 22 cents as the junior explorer announced that Heatherdale Resources (TSX: V.HTR, Stock Forum) intends to acquire all of the outstanding shares of Niblack on the basis of 0.50 Heatherdale shares per Niblack common share.

On Thursday, Hyperion Exploration (TSX: V.HYX, Stock Forum) shares powered 29% higher to 71 cents after the oil and gas producer/explorer reported initial production results from its operated 2011 Cardium light oil drilling program in Alberta. Initial results have exceeded the company's original estimates for wells completed and on production. At Garrington two gross (2 net) wells are now on production and at Buck Lake one gross (0.6 net) well is currently being tested. The first well, 9-27, achieved a production rate of 744 boe/d (89% liquids) over the first 14 days of production.

As well, shares of Kiska Metals (TSX: V.KSK, Stock Forum) moved up 14% to 45 cents as the junior explorer announced further drill holes from Island Mountain at the Whistler Project in Alaska, which included an average of 1.28 grams per tonne (g/t) gold-equivalent over 161 metres.

And, in Friday trading, Reef Resources Ltd. (TSX: V.REE, Stock Forum) rose 50% to 10.5 cents after the junior said it has completed production testing on its Ausable well #1 in southern Ontario using hydraulic downhole pump technology. It said the computed average daily production rate over the test period was 103 barrels of oil per day (bopd). The Ausable well #3 is operating as an injection well for an enhanced oil recovery program.

Camino Minerals Corp. (TSX: V.COR, Stock Forum)also gained 15% to 23 cents on news that it has completed diamond drilling on its wholly-owned Rodeo gold project in Durango, Mexico. The company said early results have delivered 5.99 grams per tonne gold and 7.94 grams silver over 31.2 metres from a single drill hole. The intersection is part of a 207.3-metre long interval, grading 1.06 grams gold and 12.94 grams silver per tonne. The junior is testing a north-west trending 5-kilometre long epithermal system. It said results from the remaining 19 holes are pending.



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