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To: ms.smartest.person who wrote (2548)	5/30/2007 10:13:13 AM
From: ms.smartest.person	Read Replies (1) \| Respond to of 3198

May 27, 2007 That Was The Week That Was … In Canada By Our Canadian Correspondent minesite.com Minews. Now over to Canada where the junior market continues to drift lower. CC. While the overall market is falling victim to its usual summer time trading slumber, individual stocks continue to make exceptional gains meaning it is all about picking the right stocks. Merger mania and deal making were the central themes and when all was said and done, the TSX Ventures Exchange, home to the most junior exploration stocks, lost ground for the fourth straight week, dropping 1.2 per cent. On Canada’s big board, Alcan’s board of directors has rebuffed takeover advances from rival Alcoa. The board is sticking to the steadfast argument that the offer “is inadequate in multiple respects and is contrary to the best interests of Alcan's shareholders.” The company also stated that it may use a so- called poison-pill defence to fend off the US$27.7 billion bid. Rumours continue to swirl that Alcan has been in discussions with BHP Billiton as the company looks for a better offer, even Xstrata has been mentioned as a possible suitor. Alcan ended the week at C$91.66, up C$3.11. Speaking of Xstrata, Russia’s Norilsk Nickel has elected to swallow the C$305 million break fee we mentioned last week and raised its bid for Toronto-based LionOre Mining International. The emerging bidding war now has the offer of C$27.50 per LionOre share on the table, far better than Xstrata’s last offer of C$25 per share. That means LionOre is now valued at C$6.82 billion. LionOre ended the week up C$0.76 to C$28.40, suggesting that the game is still afoot. Having staved off a hostile take over bid by the world’s largest gold company, NovaGold Resources has struck a deal with Teck Cominco to develop on a 50-50 basis the junior's massive, wholly owned Galore Creek copper-gold project in northwestern British Columbia. To pick up is 50 per cent stake, Teck must fund US$478 million in construction costs, with each company responsible for it’s pro rata share of funding thereafter. Building the mine should cost about US$2 billion. Under a feasibility study completed last year, Galore Creek looks capable of producing at a 65,000-tonne-per-day rate for a bare minimum of 20 years, cranking out 432 million lbs copper, 341,000 ozs gold and 4 million ozs silver annually for the first five years of production. NovaGold ended the week up a modest C$0.09 to close at C$15.77, while Teck dropped C$1.80 to close at C$43.20. On the junior front, Tyler Resources dramatically increased the resource estimate on the Bahuerachi copper project in Chihuahua state, Mexico. Consulting firm Associated Geosciences puts the size of the measured and indicated resource at 525 million tonnes at grades of 0.4% copper, 0.55% zinc, 0.008% molybdenum, 4 g/t silver and 0.03 g/t gold, based on a 0.2% copper cutoff grade. Last year, Associated pegged the estimate at 135 million tonnes grading 0.49% copper, 0.08% zinc, 0.009% molybdenum, 4.3 g/t silver and 0.05 g/t gold. Investors were pleased as shares in Tyler ended the week up C$0.49 to C$0.99. It was more of the same for Guyana Goldfields and investors failed to respond. Drilling on its Rory’s Knoll prospect on its Aurora gold property in western Guyana, intersected 124.9 metres that averaged 2.64 grams gold per tonne, at a vertical depth around 1,170 metres. Two other holes wedged off this hole tested areas between 600 and 800 metres below surface and returned 140.5 metres grading 3.41 g/t and 70 metres grading 2.22 grams per tonne. Nice. However, Guyana ended the week basically unchanged at C$9.58. Golden Chalice Resources continued to attract traders after the company announced that it had cut 1.14% nickel over 72.50 metres on its Langmuir property some 35 km south of Xstrata's Kidd Creek site in Timmins, Ontario. Golden Chalice says that based on geophysics the new zone could be 400 metres long but no knew results were forthcoming this week. Shares in Golden Chalice ended the week up C$0.22 at C$1.95 on over 15 million shares changing hands. Sticking to the nickel theme, CVRD-Inco got things back on track at its Voisey's Bay nickel mine in Labrador as mill workers returned to work, ending a two-day work stoppage. Employees walked off the job earlier in the week after safety concerns were raised. Labour issues still loom as the Voisey`s Bay operation in Labrador has been running with replacement workers for the past five weeks while two CVRD contractors and their employees represented by the United Steelworkers union try to resolve a labor dispute. Stan Bharti led Dynamite Resources inked a deal to acquire Tau Mining Ltd. (UK), which holds two mineral licenses; Kokomeren and Barskaun located in Kyrgyzstan. This combined with its deal to earn a 51 per cent stake in the Lake Torrens iron-oxide-copper-gold-uranium project in South Australia makes Dynamite a company to watch on the uranium front. The company is currently raising C$45 million for its efforts and we will be watching. Dynamite ended the week up C$0.06 at C$0.79. On the downside, shares in market darling Aurelian Resources came under pressure after a news story that has been published on the internet commenting on potential changes to Ecuador's foreign investment law. Political risk is probably the biggest overhang to its high-grade Fruta del Norte gold discovery. Aurelian hit an intra-day low of C$26.40 before recovering to close at C$31.40, down C$0.57 on the week. With Alcan and LionOre still in play, the appetite for Canadian resource deals remains intact. That said, it looks like profits will be had by good stock pickers as the overall market seems a little over extended at the present time. Minews. Thanks CC. Interesting times