TSX rises during Mar. 7 -11 trading week

The S&P/TSX Composite Index rose 157.43 points or 0.73% to 21,462. The S&P/TSX Global Mining Index decreased 2.96 points or 2.4% to 122.83 and the S&P/TSX Global Base Metals Index fell 3.79 points or 1.79% to 211.22. The S&P/TSX Global Gold Index fell 0.72 points or 0.2% to 355.42 and spot gold fell US$2.25 or 0.11% to US$1,978.70 per ounce.  

Shares of Augusta Gold rose by 19% to $1.45 on the release of an updated mineral resource estimate for its Bullfrog Gold project in Nevada. The property’s measured and indicated resources increased to 71 million tonnes grading 0.53 gram gold per tonne and 1.26 grams silver per tonne for contained metal of 1.2 million oz. gold and 2.9 million oz. silver. Inferred resources add 16.7 million tonnes grading 0.48 gram gold and 0.96 gram silver per tonne for 257,900 oz. gold and 515,720 oz. silver. Augusta said that the updated estimate confirms the presence of resources outside of the past producing open pits at the property. “We are now focused on de-risking the project through environmental and engineering studies that will form the foundation for our permit applications,” Don Taylor, the company’s CEO said in a press release.   

Shares of Gatos Silver increased by 20.4% to $5.90. The company reported its unaudited year-end results for 2021 during the period. Gatos produced 7.7 million oz. silver, 5,200 oz. gold, 39.8 million lb. lead and 49.6 million lb. zinc last year with average grades in the mill of 295 grams silver per tonne, 0.32 gram gold per tonne, 2.27% lead and 3.94% zinc. The company said that it had met its 2021 guidance for contained silver of 7.5 to 7.9 million ounces. It also announced its guidance for 2022. It aims to produce 8.5 to 9 million oz. silver; 4,000 to 4,500 oz. gold, 49 to 54 million lb. zinc; and 36 to 40 million pounds of lead this year (all metals in concentrate). Furthermore, the company spent $73 million on capital expenditure, with a major portion spent on underground development to access lower-level mining zones. The company’s operating expenses more than doubled to US$19.3 million compared to 2020 due to exploration costs, higher legal, consulting and insurance costs, higher stock-based compensation expense and one-time severance costs. 

Shares of Ero Copper fell by $1.49 to close at $18.93. The company reported its operating and financial results for 2021. Ero produced 45,511 tonnes of copper (from 2.4 million tonnes grading 2.08% copper) at a cash cost of US77¢ per pound, and 37,798 oz. gold at an all-in sustaining cost of US$732 per oz. The company recorded a net income last year of US$202.6 million. David Strang, Ero’s CEO said in a press release that 2021’s results suggest that the company was on track to meet its goal of producing approximately 100,000 tonnes of copper and 60,000 oz. of gold annually by 2025.