TSX falls, July 24-28

The S&P/TSX Composite Index lost 54.48 points to a 15,128.65-point close over the trading period.

Shares of Detour Gold rose $1.79 to $15.80 on rising gold prices and strong second-quarter results. The company posted net earnings of US$24.4 million, or US14¢ per share, and achieved record production of over 150,000 oz. gold at its sole asset, the Detour Lake gold mine in Ontario. The company expects to produce between 550,000 and 600,000 oz. gold this year at total cash costs of US$690 to US$750 per oz. sold. On July 10, the company received a US$500-million, senior-secured credit facility, consisting of a US$300-million revolving credit and a three-year, US$200-million loan, replacing the company’s $135-million credit facility. The new line of credit will repay US$320.5 million in convertible notes maturing on Nov. 30.

Kirkland Lake Gold boosted the reserve grade by 83% at its Fosterville underground gold mine in Victoria State, Australia, sending shares of the company up $1.18 to $13.18. Proven and probable reserves stand at 2.4 million tonnes of 15.3 grams gold per tonne for 1.2 million oz. gold, compared to the previous estimate of 2.2 million tonnes gold at grades of 9.2 grams gold for 643,000 oz. gold. The resource update incorporates down-plunge extensions of the high-grade, visible gold-bearing Lower Phoenix gold system, which is being mined. This extension, renamed the Swan zone, added 532,000 oz. gold at average grades of 58.8 grams gold to the updated reserve estimate. Mineralization has been traced by development and drilling for over 2 km along trend and remains open for expansion.

Lundin Mining saw 16.3 million shares traded before closing up 84¢ to $8.69 per share. The company reported net earnings of US$85 million, or 10¢ per share in the second quarter, and declared a 3¢-per-share dividend. Rising metal prices lifted sales in the quarter to US$454.7 million, up from US$342.3 million compared to the second quarter last year. The company is increasing its near-mine exploration budget to US$75 million.

Peregrine Diamonds gained 2¢ to 15¢ per share on news of hitting 152 metres of kimberlite in a drill hole at its Chidliak diamond project on Baffin Island. The intercept expands the western margin of the project’s CH6 kimberlite pipe by 35 metres at 200 metres deep. The hole continued in country rock and found a 0.32-metre, open-ended intersection of kimberlite at 361 metres deep before the hole was lost. Another drill hole is planned to test the kimberlite on the eastern side of CH6. The company is drilling extensions of the CH6 kimberlite for a resource update expected at year-end. The deposit has an inferred resource of 4.23 million carats in 5 million tonnes at 0.85 carat per tonne.