Some shareholders were simply giddy over rhenium drill results Wednesday, while a gold mine feasibility study garnered some attention.
Stockhouse Canadian Small and Micro-cap Stock Report for Wednesday, February 3, 2010
TORONTO (SHfn) – Some shareholders were simply giddy over rhenium drill results Wednesday, while a gold mine feasibility study garnered some attention.
Happy Creek Minerals (TSX: V.HPY, Stock Forum) shares powered 28% higher to 32 cents on Wednesday after the micro cap miner reported preliminary results of additional geochemical analyses performed on a portion of one of its drill holes from the Rateria property in British Columbia, which included 7.5 metres containing 7.2 grams per tonne (g/t) rhenium, along with 0.34% copper and 0.085% molybdenum. Rhenium is a metal primarily used in making high temperature super-alloys and catalysts. Rhenium prices are currently around US$6.25 per gram, and have recently ranged up to US$12 per gram over the past few years.
As well, shares of American Bonanza Gold (TSX: T.BZA, Stock Forum) gained 19% to 19 cents as the junior explorer announced results of its NI43-101 compliant 2010 Feasibility Study at its 100% owned Copperstone Gold Mine in Arizona. The Copperstone Gold Mine is estimated to produce on average 45,891 ounces of gold annually for the first three years, and have a capital investment payback period of 13 months. The study details a total capital cost of US$17.74 million and estimates the cash production cost to be US$415 per ounce of gold produced. The After Tax Net Present Value of the mine is US$51,291,204 and the Internal Rate of Return is 96.3% in the base case using a future gold price estimate of $962 per ounce and a 5% discount rate.
Melco China Resorts (TSX: V.MCG, Stock Forum), meanwhile, said it has entered into definitive agreements with Wisecord Holdings Limited (WHL), in which WHL will subscribe for 100 million common shares in the capital of the company at a subscription price of 15 cents a share for a total subscription price of $15 million. Melco China stock popped 110% to 21 cents.
And, Malaga (TSX: T.MLG, Stock Forum) Wednesday reported that it has found a technique to recycle the copper/silver rich mine tailings produced at its Pasto Bueno mine as a by-product during processing of tungsten ore. During the next six months, more than 5,000 tonnes of this tailing will be recycled generating more than US$2.5 million. Its shares added 11% at 15.5 cents
