The title of the post is a good reflection of what I am seeing recently. Junior Gold mining stocks are starting to react very well to private placements. Put another way, the price levels recent private placements have been done at, are viewed to be bargains, stocks are not selling off and price is not dipping below those PP price levels. This is bullish action and tells me demand for the junior market is healthy. We could be on the verge of a new leg to the upside. A few mining related stocks I mentioned in my last post are great examples for this kind of price behavior.

• SBB.TO – Sabina Gold and Silver: Private placement @ 2.70. Now trading @ 3.10
• CAN.V – Canaco Resources: Private placement @ 1.40. Now trading @ 1.84
• AND.TO – Andean Resources: Private placement @ 3.35. Now trading @ 3.43
• FAU.V – Fire River Gold: Private placement @ 0.50. Now trading @ 0.60

Some stocks I still consider to be sound have started to move up as well. That includes Junior Silver mining stocks. This corroborates the fact demand is increasing and pressure is starting to build up.

• MRZ.V – Mirasol Resources is respecting former resistance @ 1.50. A classic ‘resistance turned into support’.
• VEN.TO – Ventana Gold has eliminated uncertainty regarding its property rights. The stock reacted very well to that news. It is in the process of digesting recent insider selling by Ross Beaty and others.

http://www.tischendorf.com/2010/08/03/gold-mining-stocks-respecting-private-placements-levels-as-price-floors/