TSX dips, Nov. 28-Dec. 2

The S&P/TSX Composite Index fell 0.2% to 15,052.52, despite a surge in oil prices and a decent jobs report. The S&P/TSX Global Mining Index fell 0.9% to 65.19, while the S&P/TSX Global Gold Index jumped 3% to 194.24. Spot gold dipped 0.6% to US$1,177.10 per ounce. U.S. crude jumped 12% to US$51.68 per barrel, with some of the world’s largest oil producers curbing production. The Canadian economy created an unexpected 10,700 jobs in November, while the jobless rate fell to 6.8% from 7%.

Solitario Exploration & Royalty soared 25% to 95¢ per share, after the company said it would start a preliminary economic assessment on its Bongara zinc project in northern Peru. It is picking an independent consulting engineering firm to complete the assessment by mid-2017.

A June 2014 resource estimate shows Bongara has 2.8 million measured and indicated tonnes grading 15.1% zinc equivalent for 925.3 million equivalent lb. zinc. It has another 9.1 million inferred tonnes at 12.4% zinc equivalent. Solitario notes that the high-grade resource is open to expansion in all directions.

Bongara has seen 486 core holes, or 117,000 metres of drilling. This includes 95 underground holes totalling more than 15,000 metres. Solitario owns 39% of the Bongara project, while Compania Minera Milpo holds the other 61%.

Continental Gold shares rose 24.7% to $4.44. The boost came after the company received an environmental permit for its Buritica gold project in Antioquia, Colombia. Colombian regulators approved Continental’s application to amend the project’s environmental licence on Nov. 30.

With the resolution, Continental can expand its small-scale mine to a larger mining and milling operation, as envisioned in its March 2016 feasibility study. The company can now operate and build all mining and milling-related facilities, including a processing plant with a capacity of up to 3,200 tonnes per day. Continental can also mine alluvial material for the operation’s building and producing phases.

With the permitting complete, Continental is finishing the project’s debt facility, and it expects approval on its technical work plan from Antioquia’s Secretary of Mines shortly. BMO analyst Brian Quast describes the environmental permit as “positive,” and says that it “paves the way to full-scale operations.” He has an “outperform” rating and a $6 target on the stock.

Erdene Resource Development jumped 24% to 47¢ after encouraging drill results. Erdene reported the fourth batch of drill results from its recent drill campaign at its 100%-held Bayan Khundii gold project in Mongolia. Drilling is expanding the project’s gold-mineralization boundaries, with six of the 13 reported holes ending in gold mineralization. The best hole returned 65 metres of 6.3 grams gold per tonne, including 37 metres of 11 grams gold.