TSX tumbles to a six-month low

The June 6-10 trading week saw the TSX Composite Index tumble 433.9 points, or 3.2%, to end at 13,084, hitting its lowest level in more than six months. The drop came as concerns over the global recovery pace and Greece’s debt crisis rose.

The price of gold slid US$10.30 to US$1,532.10 per oz., while the Global Gold Index skidded by 18.56 points to end at 362.95. The Capped Metals & Mining Index also sank 79.8 points to 1,306.70. 

The week’s biggest percentage gainer was BRC Diamond Core, gaining 25% to close at 10¢ per share on no news. However, the African-focused diamond explorer announced that it closed a private placement of 2.5 million units for proceeds of $250,000 on May 27.

Gold Reserve shares surged 24.7% to $2.27 on 224,000 shares traded also no news during the week. The company released a press release on June 13, indicating it’s not aware of any material corporate development which would explain the recent increase in stock price and trading volume. 

Keeping with the no news pattern, Fortune Minerals rose 16.5% to $1.55 per share. It did, however, announce on June 1, that it would be releasing its first quarter results soon, and in late May filed its developers assessment report for the environmental assessment for its NICO polymetallic project in the Northwest Territories, which showed the project is economically viable.

Imperial Metals led the week’s value gainers, moving $1.29 to end at $20.68 per share. Imperial announced that its subsidiary, Red Chris Development Co., will acquire all of American Bullion Mineral’s outstanding shares that it doesn’t already own as part of a previously reported plan of arrangement to settle a minority shareholders’ class action. American Bullion shareholders approved the arrangement on June 9.

Tahoe Resources jumped 79¢ to $19.88 on 1.7 million shares traded after providing an update on the recently completed infill drilling at its Escobal silver-gold project in Guatemala. The drilling indentified potential for a resource expansion and also a new zone, Margarito, in the west Central zone. The company says the Margarito zone is up to 48 metres in true width and similar in vein mineralization as to Escobal. So far, the project has seen 277 holes and more than 82,700 metres of drilling.

In the most active category, Lundin Mining took the week’s prize with 30.6 million shares traded, gaining 39¢ to close at $6.55 per share, but on no news.

Trailing close behind, Uranium One saw 28 million shares traded, closing up 63¢ to $2.81 apiece. On June 7, the company announced that its 51%-shareholder, Atomredmetzoloto, completed the acquisition of Mantra Resources, adding Uranium One is now the operator of Mantra’s Mkuju River uranium project in Tanzania.

A revised feasibility study for Mkuju River is set to be completed in early next year.

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