Daily Roundup - March 12, 2009

Spot gold had a mild upsurge today, building on yesterday's more modest gain. After flatlining late last evening, gold rose above US$910 at about 8:30 PM ET. A saucer-like descent ended with a reversal and continuance of the uptrend, which stopped by midnight ET at about 915. From then until about 7, gold churned between 915 and 910, followed by an aborted rise above 915; the reaction took gold down below 910 briefly. Right after 9 AM ET, though, gold went on a tear right up to 930, its high in the last 24-hour period. Another, downward-inclining churn followed between 930 and 924, followed by a brief breakdown that came to a stop above 920. After a double bottom, made after 2 PM ET, gold inched upwards and flattened to close at US$927.10 for a gain of $19.20. The Amex Gold Bugs Index joined in, rising 4.48%.

The biggest point gainer, of all gold stocks this blog has followed today, was a new gold producer, Minefinders, Inc. The item that set it off was its 2008 annual results, released before market open, with the news that the company is finally cash-flow positive. Most of its gain came in the morning, as consistent with the price of gold itself, but there was some gain left for the afternoon too. Minefinders closed at $7.67, up 62 cents on the day for a rise of 8.8%.

The biggest percentage gainer today was a company that completed a preliminary assessment study, or scoping study, for its project down in Sierra Leone. AXMIN Inc. announced that the scoping study projected a 50,000 oz/year underground mine for its Komahun project. It also said that the net present value of the mine, if a 5% discount were used and if no further reserves were eventually unearthed, would be about 29 cents per share. The news was good for a 2.5 cent jump in the stock, for a close at 12 cents, giving a gain of 26.3% on the day.

Third largest in point gain, and second in percentage terms, was AuEx Ventures, Inc. AuEx was the beneficiary of a major investment by major producer Aginco-Eagle, which acquired 1 million shares of AuEx in exchange for a $2.15 million injection on a private-placement basis. The associated warrants were a hybrid of the standard one-year and more generous two-year term: once the first year turns into the second, the exercise price changes from $2.75 to $3.25. From a down day yesterday, AuEx had a 25-cent up day today to close at $2.45.

Optimistic news didn't save First Gold Exploration Inc. from being the biggest dropper today. Although it expressed hope for its Matchi-Manitou project, and an electromagnetic anomaly therein, the stock still fell 2 cents on the day, although it recovered somewhat from its early morning 3-cent plunge. First Gold closed at 14 cents, and was left with a bid of 13 cents and ask of 15 cents. Evidently, not all optimistic news is taken as good news (at first, anyway.)

That's it for the Canadian Gold Stock News Watch daily wrapup. This post will stay at the header until early tomorrow morning, when the items that came in overnight will be put up. Also, I'll put up any items from yesterday that came through the CNW Group wire. (For whatever reason, my filter there leaves me a day behind.) Until that time, thanks for stopping by - and take comfort in the fact that physical gold can't be Ponzi'd, only debased.

Stocks Mentioned: Minefinders, Inc., AXMIN, Inc., AuEx Ventures, Inc., Agnico-Eagle Mines Ltd., First Gold Explorations, Inc.

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NOTE: This blog is confined to aggregating news relating to Canadian gold stocks, as well as to commenting on past and present price movements, and is intended as an informational resource. It is not intended to make recommendations, nor is it a tool for forecasting future price movements. Its author is not a qualified investment advisor, and as such cannot make any investment recommendations. Should you be interested in any stock that appears here, please consider carefully if it is suitable for you and your portfolio. Please also consider seeking advice from a professional investment advisor if you have not already done so.