TSX gains, April 3-7

Canada’s benchmark index touched a six-week high, as gold prices rose on the back of geopolitical developments. The S&P/TSX Composite Index edged up 0.7% to 15,667.13. The S&P/TSX Global Mining Index advanced 2.4% to 67.79, while the S&P/TSX Global Gold Index gained 3.3% to close at 214.53. Spot gold added US$4.60, or 0.37%, to finish at US$1,253.80 per share.

Statistics Canada reported the economy created 19,400 jobs in March — up from the expected 5,930. But the unemployment rate moved to 6.7% from 6.6% in February, as more people looked for work.

Harte Gold rose nearly 30% to 70¢ per share. The junior received the Developer of the Year award from the Northwestern Ontario Prospectors Association for its Sugar zone property in White River, Ont., and also started property-wide airborne surveys.

Harte recently carried out an advanced exploration bulk sample and transitioned to phase one commercial production at the Sugar zone. The junior received its first production permit for another 30,000 tonnes in January 2017, which will allow continued production until it gets full commercial permitting. Harte expects to reach commercial production within a year.

The junior also began airborne magnetic and electromagnetic surveys on the original Sugar zone property and the recently staked claims. The surveys will help identify exploration targets on the 625 sq. km package and guide exploration drilling this year.

Talon Metals shares jumped 23.5% to close at 11¢, despite disappointing drill results from its 18.5%-held Tamarack nickel-copper-platinum group metals project in Minnesota. Four drill holes from the early 2017 exploration program failed to return mineralization from the 480 zone.

The goal of step-out drilling in the 480 zone, 3.5 km north of the Tamarack zone, was to test the potential extension of previously drilled, shallow mineralization. During the 2009–2010 program, one hole returned 11.5 metres of 1.1% nickel and 0.8% copper from 43 metres. Talon says the program will explore new targets.

Barrick Gold was the second most actively traded stock, finishing up 38¢ at $25.64, with 20.4 million shares traded. The major announced a strategic cooperation agreement with Shandong Gold, where the Chinese miner will buy half of the Veladero gold mine in Argentina for US$960 million. The proceeds will go towards debt repayment.

Under the agreement, the partners could jointly develop the suspended Pascua-Lama project, as well as evaluate investment opportunities in the El Indio gold belt on the border of Argentina and Chile.

Veladero’s sale should close by the end of June. Shandong’s involvement with any other project would be subject to negotiations and more investments.