Despite the holiday-shortened trading week on the Canadian bourses, the September rally for junior resource stocks remained intact with the TSX Venture Exchange gaining 2.1 percent on the week.

Investors sold off shares in Kernow Resources and Development and St. Elias Mines following drill results from the Jales – Gralheira gold property in Portugal. Results for 11 holes came in with results generally averaging less than 1 metre in width with grades up to 17.12 grams gold per tonne over 0.33 of a metre. Shares in Kernow dropped from C$0.43 to C$0.26, while St. Elias Mines plunged from C$0.80 to C$0.55.

Another stock that had investors running for cover was Mustang Minerals. The one-time high flyer released mixed results from its latest round of drilling on the M2 zone of the Mayville property in Manitoba. The results extended the zone by 60 metres but most of the holes showed lower than expected grades and one missed entirely. Mustang ended the week at C$0.54, down C$0.28.

Northwestern Mineral Ventures completed a 2-for-1 stock split with the logic that “the greater number of outstanding common shares resulting from the stock split will provide a wider opportunity for investors to become shareholders of Northwestern and increase liquidity in Northwestern’s listed securities.” The company has interests in Mexico’s Durango and Sinaloa provinces and Canada’s Northwest Territories and now has 76.8 million shares outstanding. Shares in the company dropped from C$1.94 to C$0.48 after the split, on heavy volume.

Shareholders of Skygold Ventures continued to run for the exits on the basis of the first four holes of the drill program over its 70% owned Spanish Mountain gold project in British Columbia. In a case of buy on rumour sell on news shares in the junior fell C$0.16 to C$0.65 on heavy volume. More results are expected soon so this one could be in for a wild ride.

On the uranium front, Cash Minerals and Twenty-Seven Capital hit a good hole on their Igor property in the Yukon. Hole 4 returned 1.88% copper and 0.069% U308 over 74.44 metres. Included in this interval was several higher grade sections including 6.6% copper and 0.4% U308 over 4.2 metres. But based on the muted reaction the question is: Did they drill down the mineralized zone? Hole 7, which was collared 150 metres to the north and cut the mineralized section perpendicular should help answer that. Results are pending. In the meantime, Cash ended the week flat at C$0.28, while Twenty-Seven tacked on C$0.05 to close at C$0.40.

For its part, uranium explorer JNR Resources continued to trade at a brisk pace with no new official developments. JNR, which is drilling the Rocky Brook property in Newfoundland, ended the week up C$0.03 at C$1.27 on heavy volume. A private company, Aurora Energy, 57% owned by Fronteer Development and 43% held by Altius Minerals has a drill program underway on its highly anticipated uranium projects in Labrador. So maybe additional promising uranium results will be tabled in the coming months and the prolific Athabasca Basin won’t be the only area grabbing attention in Canada.

Western Prospector Group certainly does not have that problem as it holds one of the more advanced properties in Mongolia. The junior is drilling its advanced Saddle Hills Uranium Project and the highest grade hole to date is 0.98% U3O8 over 3.3 metres. Investors like it, as shares in the junior moved ever so close to a 52-week high, closing at C$4.50, up C$0.30 on the week.

On Canada’s big board, shares in Bema Gold traded heavily following news that its Kupol project in Siberia is expanding after hitting more mineralization at a depth of 500 metres and extending the North Extension zone by 300 metres. Bema can earn up to a 75 percent stake in the Kupol property. The total cost, including startup, working capital, financing fees and interest during construction is pegged at $460 million with production slated for mid-2008. To help with its financial obligation, Bema inked a C$118.9 million bought deal financing comprising 41.72 million shares at C$2.85 each. Bema ended the week up C$0.12 to C$3.04.

Bolivar Gold moved closer to a new 52-week high after reporting drill results from its Choco 10 property in Venezuela. Results from drilling beneath the current resource at Pisolita included 5 metres grading 7 grams gold per tonne followed by 7.1 metres grading 4.1 grams gold per tonne and 1metres yielding 31.9 grams gold per tonne. In the Villa Balazo-Karolina area, results included 27 metres grading 9.3 grams gold per tonne. Shares in Bolivar Gold added C$0.17 to C$2.88 on heavy volume.

The copper price may have come off its recent lofty highs but it was still a good week to be a shareholder of Corriente Resources. Looking to advance the Mirador copper project in Ecuador, Corriente added C$0.59 to close at C$3.49 on good volume.

Canada’s biggest gold miner, Barrick Gold hit a new 52-week high ending the week at C$32.85, up C$0.39, while Placer Dome closed at C$18.33, up C$0.35 and Goldcorp also hit a new 52-week high closing out the week at C$23.05, up C$0.68.

Inflation fears may well move to the fore in coming weeks as the impact of the rebuilding of New Orleans becomes clearer. In the short term is sure looks like gold is a good place to be.