TSX makes gains despite contradictory data

The TSX Composite Index shrugged off the uncertain economic climate and managed to gain 234 points, reaching 12,415.98 points for the Oct. 15-19 period. The Index was carried to greater heights on the back of stronger than expected quarterly reports from some key companies earlier in the period and an uptick in homebuilding south of the border, which could indicate that the key housing market is finally turning around.

Those positive winds, however, were dampened by the end of the period as the second wave of key quarterly results came in and pointed to the fact that companies are indeed struggling within a weakening global economy.

The up and down attitude towards blue chip companies had a middling affect on the price of gold, as the metal was down just US$31 to US$1,724.00 per oz., while the Global Gold Index trended the other way, thanks to increasing M&A activity. The collection of gold miners in the index managed a 6 point gain to finish at 338.07 points.

The diversified miners also trended in the opposite direction of base metal prices as the Capped Metals & Mining Index was up 29 points to 934.77 despite the price for copper being down 6¢ to US$3.64 per lb. for the period.

Brazilian billionaire Eike Batista’s private gold company, AUX, is back on the acquisition trail in Colombia. After buying Ventana Gold for $1.5 billion in February of 2011, Batista is now looking to further consolidate gold claims in the country’s California gold district. His latest targets are Galway Resources and Calvista Gold. Shares of Calvista were up 114% to $1.07 for the period, while Galway shares were up 69% to $2.15. AUX is offering $1.10 per share in cash for Calvista while Galway shareholders will get $2.05 in cash plus 0.9 of a share in a new company to hold its Vetas gold project and 1 share in a new company to hold its Victorio tungsten-molybdenum project.

NovaCopper got a boost to its market cap from the drill. The company announced assays from exploration diamond drilling at the South Reef zone of the Bornite Property in Northwest Alaska. The company said four holes intersected significant high-grade copper mineralization with a highlight of 97.2 meters grading 3.66% copper. That longer intercept is made up of 14.9 meters grading 1.68% copper, 28.8 metres grading 3.79% copper, 15.2 metres grading 5.94% copper and 12.3 metres grading 2.93% copper.

Staying in Alaska Freegold Ventures hit 50.3 metres grading 1.46 grams gold at its Golden Summit Project in the state and saw its shares climb by 24% to 72¢. Drilling was focused on the Dolphin and Cleary Hill areas and the results demonstrate they both have significant expansion potential. A total of 9,714 metres have been drilled in the Dolphin Zone since January while 5,203 meters have been drilled in the Cleary zone over the same period of time.