TSX falls during May 16-20 trading period

Over the May 16-20 trading period, the S&P/TSX Composite Index fell 8.8 points to 20,197.61. The S&P/TSX Global Mining Index increased 3.64 points or 3.3% to 109.01 and the S&P/TSX Global Base Metals Index rose 6.71 points or 3.6% to 188.24. The S&P/TSX Global Gold Index rose 6.85 points or 2.3% to 301.40 and spot gold ended the week up 1.3%, or US$24.7 per oz. higher, at US$1,834.20 per ounce. 

Shares of NioCorp Developments rose 32.3% to $1.23 as the company’s updated feasibility study for its Elk Creek niobium, titanium and scandium project in Nebraska reported the presence of about 632,900 tonnes of rare earth oxides (REO), which the firm said is the second largest indicated rare earth resource in the U.S. 

The rare earth resource totals 188.8 million tonnes grading 0.0524% neodymium, 0.0143% praseodymium, 0.0012% terbium and 0.0048% dysprosium for contained metal of 98,900 tonnes of neodymium, 26,900 tonnes of praseodymium, 2,300 tonnes of terbium and 9,100 tonnes of dysprosium. The deposit includes other rare earth elements (REE) as well.    

Inferred resources add 108.3 million tonnes grading 0.37% total REO for contained metal of 408,100 tonnes.    

Shares of Filo Mining rose $1.83 to $23.50 as the company reported high-grade assay results from the Breccia 41 zone of its 100%-controlled Filo del Sol project in South America.  

Highlights from Filo del Sol, which straddles the Argentina-Chile border, included drill hole FSDH057, which cut 289.1 metres grading 1.18% copper, 0.68 gram gold per tonne and 36 grams silver starting from 498 metres; and 11.1 metres grading 9.11% copper, 8.87 grams gold and 230.4 grams silver starting from 776 metres.   

“Prior to reaching target depth, the hole ended in the highest-grade copper we’ve ever reported at Filo del Sol,” the company’s CEO Jamie Beck said in a press release. 

The company expects to continue drilling throughout the year. 

Shares of Trevali Mining fell by 8.7% to 63¢ on news that eight missing miners failed to reach the mine’s refuge chamber situated more than 500 metres below the surface. Rescuers have been searching for the miners since the company’s Perkoa mine in Burkina Faso was hit by flash floods on Apr. 16. .  

“This is devastating news,” the company’s CEO Ricus Grimbeek said in a press release on May 17. The search for the miners will continue, he added.  

The rescue team and the company have been pumping water from the bottom of the mine at level 710 over the last month. The refuge chamber is located below level 520 of the mine.   

While there is there is an additional smaller refuge below level 670, Trevali does not expect to find survivors there due to its location and size. 

According to Scotiabank analyst Orest Wowkodaw, the incident has complicated Trevali’s efforts to secure a refinancing package to replace its maturing credit facility in the third quarter and to fund development of the proposed Rosh Pinah expansion project in Namibia.