TSX Venture finishes in the red, March 2-6

The S&P/TSX Venture Composite Index lost ground during the trading sessions, dropping 2.5%, or 17.94 points, before closing at 688.79 points. Metal futures were on the decline, while investors waited on a potential interest rate hike from the U.S. Federal Reserve on the back of promising jobs data. European Central Bank (ECB) president Mario Draghi said the ECB expects the eurozone’s economic recovery will “broaden and strengthen.”

April contracts for gold declined 4%, or US$48.80, en route to a US$1,164.30 per oz. close. Meanwhile, May contracts for copper lost 3.6%, or US9.6¢, before finishing at US$2.61 lb., and April contracts for West Texas Intermediate crude oil lost US15¢ en route to a US$49.61-per-barrel close.

U.S.-focused Niocorp Developments led the value-added category after reporting that it has obtained in-principle eligibility approval for a loan guarantee to be provided by the German government. The company jumped 20¢ on 2.7 million shares traded before finishing at $1.11 per share.

On March 5 Niocorp announced the first of four approvals, which is based on a signed off-take agreement with ThyssenKrupp Metallurgical Products to buy 50% of planned ferroniobium production from the company’s Elk Creek project in Nebraska over an initial 10-year term. The loan guarantee will support Niocorp’s debt-financing strategy.

Explorer Pinecrest Resources had promising financial results from a preliminary economic assessment on its Enchi gold project in Ghana, West Africa. The company gained 12¢ before closing at 50¢ per share.

On March 5 Pinecrest released the details of a US$84-million development plan at the project, which would crank out 62,000 oz. gold annually at cash costs of US$802 per oz. The operation would recover 538,500 oz. gold over an 8.7-year life, and features a US$62-million after-tax net present value at a 5% discount rate and a 24% internal rate of return.

Argentina-focused Malbex Resources was near the top of the volume-traded category after senior producer Barrick Gold  picked up the remaining interest in its Del Carmen project in the San Juan province. The company saw 10.2 million of its shares change hands, though it gained just 1¢ before closing at 3¢ per share.

The companies had operated Del Carmen under a joint venture before Barrick grabbed the balance of Malbex’s interest for US$4.75 million. The project hosts an inferred resource on the Rojo Grande gold-silver oxide discovery of 25.4 million tonnes grading 1 gram gold per tonne and 13.3 grams silver per tonne, for 817,000 contained oz. gold and 11 million contained oz. silver.