TSX Venture plummets, Aug. 17-21

The S&P TSX Venture Composite Index hovered near historic lows during the Aug. 17-21 trading sessions, as it lost 6.2% or 35.69 points en route to a 537.52 point weekly close. Crude oil futures sat close to a six-year low, while the U.S. Conference Board’s index of national economic indicators, which measure the outlook for the next three to six months, decreased 0.2% in July. Minutes from the Federal Reserve’s latest meeting revealed that U.S. officials voiced concerns over low inflation even as the job market improves, which could delay an interest rate boost.

Gold futures benefitted from the market turmoil, with December contracts for bullion closing up 3.7% or US$41.20 at US$1,159.60 per oz. October contracts for West Texas Intermediate (WTI) crude oil tumbled 4.6% or US$1.95 en route to a US$40.45 per barrel close, while September contracts for copper lost US1.7¢ before finishing at US$2.30 per lb.

International Bethlehem Mining was the most actively traded stock during the week following the release of drill results from its LH joint-venture gold project 7km due south of Silverton, B.C. The company gained 1¢ on 11 million share trade volumes before finishing the trading period at 2¢ per share.

On Aug. 18 International Bethlehem reported its joint venture partner, Magnum Goldcorp, had released assays from a drill program at LH targeting previously-identified gold mineralization in historic, underground workings. The companies have completed a total of 11 drill holes over 693 metres.

Highlights from results at LH include: 17 metres grading 13.58 grams gold per tonne from 21 metres depth in hole 15-31; 19 metres of 0.71 grams gold from 29 metres in hole 15-30; and 1 metre of 27.5 grams gold from 20 metres depth in hole 15-31.

Explorer Integra Gold also had a busy trading week following news of a material equity investment from producer Eldorado Gold. The company saw nearly 6.3 million of its shares changes hands as it gained 2¢ before closing at 29¢ per share.

On Aug. 18 Integra announced that Eldorado will purchase 52 million of its shares priced at 28¢ per share for gross proceeds of roughly $14.6 million. The subscription price represents a 5.7% premium to Integra’s closing price at the time of the deal and an 11% premium to its 20-day volume weighted average.

The explorer indicated the proceeds will allow it to “substantially increase” current drill efforts at its Lamaque gold project in Quebec. Integra is planning to complete around 100,000 metres this year, with a focus on Lamaque’s high-grade Triangle zone.