TSX Venture gains ground, Nov. 17-21

The S&P/TSX Venture Composite closed in the green for a second week after it gained 1.6%, or 12.5 points, en route to a 789.13-point close. Gains were driven by rising precious metal futures, while the energy sectors traded relatively flat. Meanwhile, China reduced its one-year benchmark-lending rates by 40 basis points to 5.6%, and the European Central Bank said it would implement stimulus measures for the eurozone economy. 

Gold futures rallied as February bullion contracts jumped 1.4%, or US$16.90, before finishing the week at US$1,198.40 per oz. January contracts for West Texas Intermediate crude oil gained 1.2%, or US90¢, en route to a US$76.51-per-barrel close. March contracts for copper rallied late in the week, but finished down US1.2¢ at US$3.03 per lb.

Project-generator Reservoir Minerals led the value-added category after announcing high-grade gold samples from trenching at its Bibemi project, and reporting it had acquired the Wapouzé exploration licence near Bibemi “covering similar Pan-African geology.” The company gained 40¢ on 180,200 shares traded before closing at $4.30 per share.

Previous fieldwork at Bibemi identified high-grade gold mineralization in quartz veins within a gold-in-soil geochemistry anomaly extending for 20 km along strike. During the 2014 season 95 trenches were excavated to bedrock.

Sampling reportedly confirms gold mineralization in thin and strongly deformed quartz veins as well as in the host schists and diorite, highlighted by 10.95 grams gold per tonne over 3.6-metre trench T37.

Barkerville Gold Mines saw its shares jump 103% on 2.9 million traded after it released fire assay results from 13 diamond drill holes collared 11 years ago at its Island Mountain asset, located near the town of Wells, B.C. The company gained 16¢ before finishing the trading period at 31¢ per share.

Infill core sampling early last year included highlights of 8.6 metres of 7.45 grams gold from 27 metres deep in hole 3-14, and 6.9 metres grading 5.11 grams gold from 63 metres in hole 3-15.

Mason Graphite gained 18¢ on 651,207 shares traded before finishing the trading period at 64¢ per share.

Results of its trade-off analysis reportedly show that relocating the concentrator facility near Baie-Comeau city in Quebec could offer low-cost hydroelectric power and improve access to labour.

Mason estimates that the mine adjustments could reduce capital expenditures up to 8%, and operating costs up to 20%. In a 2013 PEA, direct capital costs were initially pegged $90 million, while operating costs were $390 per tonne.