TSX Venture edges down, March 21-24

The S&P/TSX Venture Composite Index peaked at 585.59 points over the holiday-shortened trading period before falling to a 580.02-point close, or a 0.8-point loss, as commodities retreat on speculation of U.S. interest rate hikes in April. Spot gold fell $38.35, or 3.1% to a US$1,217.05 per oz. close, whereas three-month London Metal Exchange copper contracts dropped US$159 per tonne, or 3.1%, to US$4,911 per tonne.

Toronto-based gold junior Rosita Mining was a front runner in the greatest percentage change, gaining 6¢, or 300%, to an 8¢ close after a metallurgical and engineering update at its Santa Rita stockpile and tailings project in Nicaragua, 120 km west of the port town of Puerto Cabezas. The stockpiles were generated over a 17-year mine life from 1959 to 1975, where 5.4 million tonnes averaging 2.1% copper, 0.93 gram gold and 15.08 grams silver was processed with a 60–80% mill recovery.

The company expects a preliminary economic assessment and environmental permitting within nine months.

Metanor Resources saw 19.6 million shares traded before closing down 2¢ at 9¢ per share. The junior producer has started a 60,000-metre drill program at its Moroy prospect — a high-grade, shear-vein system — 1 km southeast of its producing Bachelor Lake mine in Val-d’Or, Que. Investor Eric Sprott also topped up his stake in the company on March 11 to 7.1%, with the acquisition of 7 million shares.

Gold Reserve led the value-added category, gaining 34¢ to a $6-per-share close. The company announced a private placement worth US$38 million on March 9, which will be used for general working capital purposes.

In September 2014, Gold Reserve reached a settlement worth US$740 million with the Venezuelan government for losses it incurred after a nationalization campaign rescinded all permits and licences regarding the company’s Brisas project in southeastern Venezuela.

Negotiations to collect the settlement led to the signing of a Memorandum of Understanding in February, which contemplates payment, transfer of mining data and joint development of the Brisa project.

Mexico-focused copper miner Catalyst Copper gained 14¢ to a 39¢ close during the trading period, earning its way into the value-added category after announcing plans to merge with NewCastle Gold.

NewCastle will acquire all of the outstanding shares of Catalyst with an implied 3% fully diluted premium to shareholders.

The company will focus on NewCastle’s permitted Castle Mountain gold project in California, strengthened by a management team led by Richard Warke, Jim Gowans and Frank Giustra.