TSX Venture retreats, Oct. 3-7

The S&P/TSX Venture Composite Index dropped 19.43 points to a 780.8-point close over the period, as gold hit a four-month low on the prospect of a U.S. interest rate hike in December. Spot gold prices lost US$58.79 before finishing at US$1,257.08 per oz., whereas Comex copper prices fell US5¢ to US$2.16 per lb.

Shares of aspiring miner Goldcliff Resource gained 18¢ to 40¢ over the trading period. On Sept. 26, the company increased a previously announced private placement to 6.6 million units at a price of 19¢ per unit, for total proceeds of $1.3 million. Each unit consists of a share and half a warrant, with each full warrant exercisable within two years into a share for 25¢. The proceeds will be used to buy and develop the Pine Grove gold joint-venture project in Lyon County, Nevada. On Aug. 8, Goldcliff struck a deal with Lincoln Mining, whereby Goldcliff can earn 40% interest in Pine Grove by spending US$1.4 million over three years. The deal is part of Goldcliff’s newly-adopted business model to develop a gold mine in smaller stages, with any subsequent expansion determined by sufficient cash flow. The Pine Grove project contains two, intrusive-related, shear-hosted gold deposits, the Wilson and the Wheeler, which host total measured and indicated resources of 3.1 million tonnes of 1.37 grams gold per tonne.

Alset Energy reported that two concessions under its Lithium Salars project in Mexico may require $1.8 million in annual exploration expenditures to maintain them in good standing with Mexican mining authorities. As a result of the “new challenges,” the company’s president and CEO Tim Oliver has resigned and been replaced by past-president and CEO Stephen Stares. The project update triggered 16 million shares to trade hands before closing down 16¢ to 11¢ per share. Two of Alset’s Mexican concessions, known as Sutti 19 and Sutti 22, cover 8,9 sq. km and 50 sq. km respectively. Stares clarified in a later press release that by subdividing its concessions into smaller parcels, the company can reduce annual expenditure requirements to $292,000.

Shares of Great Quest Fertilizer gained 15¢ to 35¢ during the trading period. On Sept. 30, the company initiated a resource conversion program at its Tilemsi phosphate property in northeastern Mali. The work will be completed alongside bulk sampling, additional drilling and topographical surveys to aid mine planning. The program will be the first comprehensive geological effort since conflict broke out in the region four years ago. Great Quest expects to report on mineral grades and revised resource calculations by year end.