Junior miner powers higher on gold results

Stockhouse Canadian Small and Micro-cap Stock Report for Monday, December 10, 2012

TORONTO (SHfn) – Fire River Gold (TSX: V.FAU, Stock Forum) shares climbed as much as 50% before closing up 8% to 6.5 cents on volume of more than 6.1 million shares Monday after the micro cap miner reported results from the 2012 surface diamond drilling program at its wholly-owned Nixon Fork Gold Project in Alaska, which included 7.6 metres grading 50.26 grams per tonne (g/t) gold.

As well, shares of Feronia (TSX: V.FRN, Stock Forum) shot up 18% to 13 cents as the commercial farmer said it has entered into a share subscription agreement with the African Agriculture Fund, which is managed by Phatisa Fund Managers. The fund will purchase 42,028,000 common shares at a price of 12 cents per share for a total consideration of approximately $5 million, and will own 19.9% of Feronia's issued and outstanding common shares.

Eagle Star Minerals (TSX: V.EGE, Stock Forum), meanwhile, announced phosphorite results from Pits 3 and 4 at Bomfim Hill in Brazil, which returned an average grade of 15.42% P2O5 over five meters and 23% P2O5 over 1.5 metres. Eagle Star stock popped 30% to 13 cents.

And, Colombian Mines (TSX: V.CMJ, Stock Forum) Monday reported that recent reconnaissance sampling has returned values to 49.8 g/t gold, 526 g/t grams silver, and 17.05% copper from its 100% owned Mercedes property in Colombia. Colombian Mines shares added 13% at 45 cents.