Juniors hang on despite mixed metals prices

TSX Venture Exchange-listed companies were about even as the gold price climbed higher, owing to a weakening U.S. dollar. The S&P-TSX Venture Exchange index was down 25 points during the trading period of Oct. 13-19, compared with the previous week, closing at 1,650.26.

New York spot gold topped US$420.35 per oz. at the end of the period to close about 1% higher than at a week earlier, where it closed at US$414.50. Weakness in the U.S. greenback is what drove prices for gold and silver higher. With oil topping US$55 per barrel, inflation is a growing concern, and with that comes a weaker dollar (since there is the perception that interest rates might rise).

Silver followed gold’s lead, rising 17, or 2.5%, to close at $7.19 an ounce. Copper, which had a fabulous run-up to a 16-year high of US$1.50 during the previous session, closed lower this time around, settling at US$1.29 per lb.

Both platinum and palladium were lower: the former lost $2 to close at US$822 per oz., while the latter was down by US$9, or 4%, to US$213.

There were 25 new 52-week highs among Venture Exchange-listed companies, compared with 66 new 52-week lows.

Topping the volume leaders was OntZinc, with nearly 16.7 million shares changing hands. The stock tacked on 6 to close at 14, for a 75% gain. The company launched a bid to acquire Hudson Bay Mining & Smelting from Anglo American earlier this month.

In second spot was Diadem Resources, which traded more than 5.3 million shares and ended up 12.5, a gain of 78.5%. Diadem announced an equity financing of $2 million, and the company has three projects that are prospective for diamonds in North America.

Consolidated Abaddon Resources gave up some ground, losing 3 to close at 16 on a volume exceeding 4 million shares. The company recently amassed a 60-sq.-km land position in the Athabasca Basin of northern Saskatchewan at a time when uranium prices are more than US$20 per lb. The company also recently resumed drilling on its Sidace Lake gold property in the Red Lake area of Ontario.

Crowflight Minerals gained 50% on a volume of 2.7 million shares to close at 39. The company appointed Peter Rowlandson, an engineer with 34 years of industry experience with large mining companies, as president. His expertise will come in handy at Bucko in Manitoba, where the company is looking at putting a mine into production. Crowflight and Falconbridge recently formed a joint venture on several of the latter’s properties in the Thompson nickel belt.

Topping the list of value gainers was Klondex Minerals, which closed up over $1.13, to $2.01, a gain of more than 128%. Volume exceeded 1.1 million shares. The company announced spectacular grades from the first three holes of drilling at its Fire Creek property in the Battle Mountain-Eureka trend. Before reaching its target, one hole encountered multiple veins, including 10 ft. grading 0.404 oz. gold per ton (3.05 metres grading 13.85 grams gold per tonne), 10 ft. of 0.334 oz. gold, 20 ft. of 0.421 oz. gold, and 25 ft. of 2.594 oz. gold (including a 5-ft. section of 12 oz. gold).

On the downside, percentage losers included Solitaire Minerals, which was off 28% on 2.5 million shares; Solitaire ended at 11.5 despite having been one of the highest percentage gainers in the previous week.