Another big find at McFauld’s Lake, but not big enough

Dec 01, 2008 | 06:39 AM |

TORONTO In a remote part of Ontario, little-known junior mining company Noront Resources Ltd. made an ultra-high-grade nickel-copper discovery last year that sparked one of the most frenzied staking rushes in recent Canadian history.

The find in the McFauld's Lake area had junior miners salivating at the prospect that the next Voisey's Bay was about to be revealed deep under the swamplands and frozen lakes in the northern reaches of the province. Volumes on the TSX Venture Exchange, where most of the juniors are listed, shot up to record levels. It even caught the attention of metal analysts, who wondered whether world markets should be bracing for a major new source of nickel and copper.

More than a year later, the bloom has come off the rose. The share prices of the more than 40 juniors who swooped in and claimed much of the prospective land near the initial discovery are hurting badly, with nearly every company seeing their trading value off by more than 50 percent. Even Noront's stock is at a fraction of its 2007 highs.....

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