TSX Venture on the rise, Feb. 2-6

The S&P/TSX Venture Composite Index rallied 16.63 points, or 2.5% to 693.44 during the period, as crude oil futures showed signs of life and copper prices improved. The U.S. government reported that the private sector created 213,000 jobs last month, while Statistics Canada revealed that the unemployment rate dropped 0.1% in January to 6.6%, though mostly due to part-time positions.

Gold futures closed in the red for a second week, with April contracts for bullion losing 3.5%, or US$44.60, before settling at US$1,234.60 per oz. Crude oil may have finally found the bottom, as March contracts for West Texas Intermediate bounced 7.2%, or US$3.45, en route to a US$51.69-per-barrel close. March contracts for copper rose 3.7%, or US9.2¢, before finishing at US$2.59 per lb.

Explorer Kennady Diamonds was near the top of the value-added column after releasing drill results from its Kennady North project in the Northwest Territories. The company rose 51¢ on 287,000 shares traded, before closing at $4.50 per share.

On Feb. 2 Kennady announced assays from hole 15-1HQ, which intersected kimberlite 40 metres northwest of the delineation boundary. Kennady says the results show that Kelvin trends northwest, which is supported by recent ground geophysics results.

The company will drill another hole from the same collar so that it can better understand the Kevlin pipe’s dimensions to the northwest. Kennady figures the Kelvin–Faraday kimberlite corridor hosts between 9 million and 12 million tonnes, although the company could boost its tonnage guidance.

Junior West Kirkland Mining was the most heavily traded company after a U.S.-based, privately owned hedge fund sponsor picked up its stock on the public market. West Kirkland saw 16.3 million of its shares change hands, but closed flat at 6¢ per share. On Feb. 5, Sun Valley Gold, which provides financial services to institutional investors and operates out of Idaho, acquired 11.5 million shares of West Kirkland at 6¢ per share. West Kirkland is working towards production at the Hasbrouck and Three Hills projects, which are outcropping, all-oxide gold deposits near Tonopah, Nev.

Gold Canyon Resources closed a non-brokered private placement and saw 8.6 million shares change hands, before ending flat at 16¢ per share. The placement includes 11.84 million units for 11¢ each for gross proceeds of $1.3 million. Each unit includes one share and one purchase warrant priced at 17¢, and valid for three years.

Proceeds are earmarked for Gold Canyon’s Springpole gold project, 110 km northeast of Red Lake, Ont. The company is conducting environmental surveys and hopes to advance it towards a feasibility study.