Market news

Toronto Stock Exchange

The TSX Composite Index resumed its moribund ways as it fell 19 points to finish at 12,387.54 for the Sept. 6-9 period.

Continued worries over European and U.S. debt levels played on investors’ fears, and gold even lost some of its lustre in the sell-off. The purported safe-haven metal fell US$20 and closed at US$1,859.50 per oz. for the period. Gold miners, however, didn’t feel the pain as the Global Gold Index rose 8 points to wind up at 447.43 points.

The diversified miners represented in
the Capped Metals & Mining Index also trended upwards, if only slightly, with the index up 9 points to 1,150.83. That move came as prices for nickel, tin, lead and zinc were all higher. Prices for copper and aluminum, however, were slightly off. 

Auryx Gold was one of the good news stories for the period, even if a metal not included in the company’s name was responsible for the positive momentum.  The company announced the discovery of two distinct massive iron-oxide zones and saw its share price rise 18% to 65¢ as a result. The two zones are overlying and peripheral to the Otjikoto gold deposit, which is a deposit at a project of the same name in Namibia. The company says geophysical work suggests iron oxide mineralization could have a 6-km strike length. One zone is a 5- to 30-metre-thick unit of semi-massive to massive iron oxides, while the other is a 5- to 20-metre thick unit of semi-massive to massive iron oxides. Preliminary metallurgical test work suggests that the magnetite can be easily concentrated to 65% by crushing to 8 mm and performing magnetic separation. 

The drill was also kind to Rio Novo Gold and the market noticed, sending its shares up 18% to $1.17. Rio Novo announced highlight intercepts of 2.51 grams gold over 17 metres at the Morro do Carneiro target and 1.53 grams gold over 14 metres at the Vira-Saia target. Both targets are situated at its Almas gold project in Brazil’s Tocantins state. The company is looking to become a gold producer in the short term by bringing Almas and its Guaranta gold project in
Brazil’s Mato Grosso state into production. Both projects have solid infrastructure, main grid hydro power and are situated in mine-friendly jurisdictions.

A third metal, copper, helped lift Entree Gold‘s market cap with results from its Ann Mason copper-molybdenum porphyry deposit in Nevada’s Yerington district. The results were good enough to boost Entree’s fortunes by 17% as shares closed at $2.26. The results came from three deep diamond drill holes and returned long intercepts from 448 metres to 814 metres averaging 0.35% to 0.43% copper equivalent. Drilling at the property is performed with an eye towards upgrading the inferred resource of over 7 billion lbs. copper, as well as increasing the global resource.

TSX most active issues

VOLUMEWEEK

(000s)HIGHLOWCLOSECHANGE

Northgate MnlsNGX194364.343.883.98-0.19

Kinross GoldK1862718.1717.0017.87+0.53

Yamana GoldYRI1826817.3915.9216.90+0.32

Barrick GoldABX1692755.3651.5054.39+2.42

Lundin MngLUN156015.304.884.93-0.29

Uranium OneUUU137282.522.332.36-0.07

GoldcorpG1138655.9352.4654.91+1.15

New GoldNGD1069114.1012.8413.88+0.51

Osisko MngOSK993615.1014.0814.55-0.29

Eldorado GoldELD927621.9520.3121.38+0.85

TSX greatest percentage change

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(000s)HIGHLOWCLOSECHANGE

Polo ResPOL150.100.090.10+25.0

Golden QueenGQM6223.722.873.60+22.4

Velocity MinlsVLC1250.170.140.17+21.4

Exeter ResXRC9445.694.645.40+21.3

Hard Creek NiHNC2270.300.230.29+20.8

Zincore MtlsZNC1290.350.260.35+20.6

Auryx GoldAYX9030.680.540.65+18.1

Rio Novo GoldRN7691.200.991.17+18.1

Entree GoldETG1782.401.892.26+17.1

SemafoSMF790510.488.7510.31+16.6

TriAusMinTOR13600.120.100.10-16.6

Crescent GoldCRA280.070.050.05-16.6

New Dawn MngND111.311.181.18-15.7

MDN IncMDN1030.320.280.28-15.1

NovaGold ResNG330611.449.019.11-15.1

Primero MngP36733.703.003.08-14.4

Powertech UranPWE5660.140.120.12-14.2

Magma MetalsMMW1160.220.180.18-14.2

CIC EnergyELC4342.041.791.79-13.5

Avnel GoldAVK540.530.470.47-12.9

TSX greatest value change

WEEK

VOLUMECLOSECHANGE

Walter EnergyWLT5021288.26+12.36

Royal GoldRGL3589181.09+3.44

Barrick GoldABX1692694654.39+2.42

Labdr I-Ore RoLIF_U58637337.90+2.02

Newmont MngNMC6485165.00+1.92

Franco-NevadaFNV329420445.66+1.70

SemafoSMF790519510.31+1.47

IAMGold CorpIMG610051322.39+1.38

Centerra GoldCG204364022.35+1.37

Pretium ResPVG81356011.95+1.33

First QuantumFM888358320.81-1.90

NovaGold ResNG33064709.11-1.62

First MajesticFR399017022.60-1.38

Inmet MiningIMN87572461.14-1.11

Teck BTCKB906984540.58-1.08

Cameco CorpCCO347841421.26-0.97

Kirkland Lk GdKGI88282820.10-0.93

Alamos GoldAGI258751918.61-0.87

Golden MnlsAUM6831812.95-0.77

Harry WinstonHW88703513.52-0.61

TSX Venture Exchange

The oscillations on the S&P/TSX Venture Composite Index continued in the shortened Sept. 6 to 9 period, this time dropping 25.26 points to end at 1,785.10 points. Volume edged up again, averaging 79.2 million shares traded daily.

Inca Pacific Resources was one of the week’s  biggest movers, up 25¢, or 76%, to 58¢ on 13.5 million shares traded to become the most-traded and biggest percentage gainer. The activity came after Peru-based Minera Milpo offered $35 million to buy out Inca and end an ownership dispute over the Magistral copper-molybdenum project in Peru. Inca had disagreements with the Peruvian government about work expenditures in 2009, leading the government to seize the property and auction it off to Minera Milpo. Inca’s support of the buyout means it won’t have to resort to litigation.

Hellix Ventures was up significantly, jumping 48¢ to end at $1.22, while hitting a high of $1.50 during the period. Having released no news, the company was forced to issue a statement saying it was unaware of any material change that might cause the activity. The last news from Hellix was in July when it announced gold and silver sample results from its Margarita project in Arizona, with values as high as 27.2 grams gold per tonne and 246 grams silver per tonne. The company’s stock price traded around 47¢ in early July.

Chesapeake Gold was on a tear for a second week, once again having the highest value climb, up $1.91 to $15.96. The company has not released any news since a financial update in May. Chesapeake could be seen as a potential takeover target with its advanced 17.2 million oz. gold and 467 million oz. silver Metates project in Mexico’s Durango state.

Trelawney Mining and Exploration was the second-highest value gainer of the period, up 60¢ to $4.94 on 2.4 million shares traded. The company announced it has completed the partial acquisition of claim 266, part of the Chester 3 property, and announced a property sale to Mag Copper for shares. The company reminded Augen Gold shareholders to tender their shares before the Sept. 12 deadline to ensure the takeover deal goes through, having increased the bid price in late August. The looming deadline also meant Augen shares were heavily traded, with 6.7 million shares traded as the company’s share price went up 6¢ to 42¢.

Celeste Copper appointed Farhad Abasov to its board of directors and named him chairman. Abasov is president and CEO of
Allana Potash, and executive chairman of Rodinia Lithium. The company is working to complete the acquisition of England-focused Cornish Minerals, and is also exploring its copper properties in Chile. In the period Celeste’s share price went up 7¢, or 58%, to 19¢.

TSX-V most active issues

VOLUMEWEEK

(000s)HIGHLOWCLOSECHANGE

Inca Pac ResIPR135060.590.550.58+0.25

Goldex ResGDX118900.120.070.07-0.03

RoxgoldROG68671.130.770.88-0.03

U3O8 CorpUWE67640.560.370.50+0.17

Augen GoldGLD67170.420.360.42+0.06

Sandstorm ResSSL64431.461.341.430.00

Riverstone ResRVS60890.750.580.61-0.01

Manson CreekMCK59110.140.090.12-0.01

Balmoral ResBAR52031.181.091.11-0.05

Victoria GoldVIT50370.580.520.54-0.04

TSX-V greatest percentage change

VOLUMEWEEK

(000s)HIGHLOWCLOSECHANGE

Inca Pac ResIPR135060.590.550.58+75.7

Hellix VentHEL8521.500.751.22+64.8

West High YldWHY530.370.220.32+60.0

Celeste CopperC15010.190.130.19+58.3

U3O8 CorpUWE67640.560.370.50+51.5

Amseco ExplAEL3280.090.060.09+50.0

Menika MiningMML1720.040.030.03+50.0

Richmond MnlsRMD19650.040.030.03+50.0

NuLegacy GoldNUG8360.250.160.22+46.6

Columbus SilvCSC17780.180.110.16+45.4

SG Spirit GoldSG200.150.140.14-39.1

Cascadia ResCCR160.130.090.11-38.8

Trillium NorthTNM1500.050.030.05-37.5

Altair VentAVX4820.070.050.05-37.5

Pac Iron OrePOC150.220.190.19-36.6

Animas ResANI9370.350.220.22-35.2

Dentonia ResDTA2470.030.020.02-33.3

Lithic ResLTH10120.120.090.10-33.3

GTO ResGTR240.170.100.11-31.2

TiexTIX1850.100.090.09-30.7

TSX-V greatest value change

WEEK

VOLUMECLOSECHANGE

Chesapeake GldCKG26130615.96+1.91

Trelawney M&ExTRR23531384.94+0.60

Hellix VentHEL8524581.22+0.48

Inca Pac ResIPR135058290.58+0.25

Batero GoldBAT2996163.46+0.24

Mansfld MnrlsMDR2362801.70+0.20

Great Quest MeGQ1338903.00+0.20

New Pac MetalsNUX3005781.99+0.19

Bear Creek MngBCM9376914.38+0.18

D Arianne ResDAN27311011.95+0.18

Prophecy PlatNKL5853164.10-0.93

Quest Rare MnlQRM4637124.07-0.48

Giyani GoldWDG9676201.24-0.43

Strategic MetlSMD14261862.26-0.31

Mirasol ResMRZ3942034.25-0.24

Tasman MetalsTSM3222813.39-0.24

Orbite Expl AORTA31219062.33-0.21

Lumina CopperLCC1328096.71-0.19

Olivut ResOLV938471.62-0.18

Northern GraphNGC3332971.19-0.16

U.S. markets

U.S. equities closed the Sept. 6-9 shortened trading week lower as European debt and fears of a new recession weighed down investor mood, although U.S. President Barack Obama proposed a US$447-billion job program to boost the U.S. economy. 

The Dow Jones Industrial Average tumbled 248.13 points to end at 10,992.13, while the S&P 500 Index lost 19.74 points and ended at 1154.23. The Nasdaq Composite slipped 12.34 points to 2,467.99. 

Strong drill results helped Entree Gold gain 19% to US$2.29 per share. The company assayed three more holes from its Ann Mason copper molybdenum porphyry project in Nevada, which returned long intercepts from 448 metres to 814 metres averaging 0.35% to 0.43% copper equivalent. 

Cream Minerals shares jumped 17% to close at US21¢. The company released results from eight infill holes on the Veta Tomas zone of its Nuevo Milenio silver-gold project in Mexico. The drilling is part of an ongoing 20,000-metre drill program. Highlights include 172.10 grams silver per tonne and 0.48 gram gold per tonne over 10 metres, with 183.47 grams silver and 0.54 gram gold over 6 metres; and 105.39 grams silver and 0.82 gram gold over 7 metres, with 126.98 grams silver and 1 gram gold over 6 metres. The intercepts are not true widths. 

Claude Resources also got a boost from drill results from the newly-discovered L62 zone at its Seabee gold mine in northern Saskatchewan. Highlights include: 10.68 grams gold per tonne over 3 metres; 14.01 grams gold over 5 metres; 261.28 grams gold over 4 metres; and 1,563 grams gold over 0.5 metre, all representing true widths. Claude was up 13% to US$2.29 per share. 

Barrick Gold was one of the most traded stocks, with 42.1 million shares changing hands. The major announced two gold discoveries in Nevada, Red Hill and Goldrush found on its Cortez gold property. On Sept. 2, Barrick sold its 70% interest in Nevada’s Pinson gold mine to Atna Resources for US$15 million and 15 million Atna shares. Barrick will also get a 10% net profits royalty after Pinson produces 120,000 oz. gold. Barrick closed at US$54.55. 

U.S. most active issues

VOLUMEWEEK

(000s)HIGHLOWCLOSECHANGE

Alcoa*AA8061812.3411.4311.58-0.46

Freeport McMo*FCX6987245.5641.5141.99-2.95

Barrick Gold*ABX4213255.9552.1454.55+1.68

Newmont Mng*NEM3787966.6161.7165.26+1.09

Kinross Gold*KGC3716518.2517.2017.95+0.36

Hecla Mining*HL322748.107.607.77-0.09

Potash C Sask*POT3106660.4255.9057.46-0.96

Northgate Mnl*NXG301614.383.894.00-0.24

Alpha Nat Res*ANR2915133.5929.2830.81-0.08

Goldcorp*GG2909556.3153.1055.27+0.56

U.S. greatest percentage change

VOLUMEWEEK

(000s)HIGHLOWCLOSECHANGE

Gold Am Mng*SILA17050.180.070.17+142.8

Grandview Gld*GVGDF300.050.050.05+25.0

Exeter Res*XRA8315.784.705.45+20.0

Entree Gold*EGI6602.411.882.29+18.6

Cream Mnrls*CRMXF3380.230.160.21+16.6

Walter Energy*WLT347997.2973.8188.22+13.6

Claude Res*CGR29702.371.932.29+12.8

Caledonia Mng*CALVF3440.100.080.09+12.5

Silvercorp Mt*SVM40379.237.528.43+11.9

Alexco Res*AXU24189.327.829.11+9.6

Lake Vict Mng*LVCA190.140.100.10-23.0

NovaGold Res*NG2690011.559.039.16-16.0

Primero Mng*PPP4573.723.063.07-15.8

Quest Rare Mn*QRM9634.594.064.09-11.8

Alum Cp China*ACH125115.8814.4614.58-10.9

Geovic Mng*GVCM1080.300.240.25-10.7

North Am Pall*PAL66933.753.353.40-9.5

Mechel*MTL273617.5615.5415.63-8.9

Alumina Inc*AWC5537.336.556.59-8.4

Goldfield*GV510.350.320.33-8.3

U.S. greatest value change

WEEK

VOLUMECLOSECHANGE

Walter Energy*WLT347852188.22+10.61

Randgold Res*GOLD4548782111.71+3.71

Royal Gold*RGLD464611681.26+2.29

Barrick Gold*ABX4213227354.55+1.68

AngloGold Ash*AU973099547.13+1.62

Newmont Mng*NEM3787910265.26+1.09

Peabody Enrgy*BTU2550961346.81+1.02

Patriot Coal*PCX471171814.49+0.95

Mesabi Trust*MSB36250925.91+0.94

Exeter Res*XRA8310595.45+0.91

BHP Billi-BHP*BHP1532912877.17-3.71

Soc Quim&M Ch*SQM184559958.59-3.37

Freeport McMo*FCX6987183241.99-2.95

BHP Billi-BBL*BBL582200561.86-2.66

Alliance Rs P*ARLP14261170.81-2.14

Compass Mnls*CMP29774671.22-1.88

Cliffs Nat Rs*CLF1582668176.63-1.86

Alum Cp China*ACH125144514.58-1.79

NovaGold Res*NG269003399.16-1.75

Teck B*TCK1534178740.73-1.67