Metals drags down TSX Venture, Oct. 23-29

The S&P/TSX Venture Composite Index fell 1.5%, or 8.1 points, to close at 539.65 points, amid a continuing decline in gold prices by 1.7%, or US$20.08, before closing at US$1,146 per oz. gold.

The gold price stayed near three-week lows, held down by a U.S. Federal Reserve policy statement that suggests it might still raise short-term interest rates in December. Meanwhile, the loonie lost ground after a monetary policy report by the Bank of Canada, which predicts 2% economic growth in 2016 and 2.5% in 2017, which is lower than previous forecasts of 2.3% and 2.6%, due to weakening oil prices. US/CAD exchange rates gained 0.64% to C$1.32.

Copper touched three-week lows before closing down 2.14% to US$5,160 per tonne, amid eroding demand and worries about slower economic growth in China, which grew 6.9% in the third quarter, down from 7% in the previous three months.

Brent crude oil gained slightly by 1.5% to US$48.8 per barrel — the first positive in three weeks — as U.S. oil producers cut back on operations, which could address oversupply concerns.

Nevada Exploration topped the value-added and percentage gain this week, rocketing up 38¢, or 182.9%, to close at 58¢. 

The trading was fuelled on drill data that suggests a Carlin-style gold system at the company’s Grass Valley project, 16 km south of Barrick Gold’s Cortez Hills mine in Nevada — one of the largest primary gold-producing mines in the world.

The company sampled 2,400 metres of drill cuttings, or chips, from seven historic geothermal exploration holes along the southern end of the project area. Assays revealed anomalous geochemistry from surface to 297 metres deep, with gold averaging 0.012 gram gold per tonne, or 12 ppb.

CEO Wade Hodges explained that “the data increases our confidence that we are looking at a system of the size to support a large deposit,” and has “all the correct” signatures of a carlin-style deposit.

Aston Bay Holdings climbed 6% to 20¢, after announcing it has issued 612,321 shares at 14¢ per share to settle $85,725 of consulting fees owing to an arm’s length advisor and its company director/officer, with the intent of preserving its cash for exploration activities.

The Vancouver-based explorer holds the sediment-hosted copper and zinc prospects Storm Copper and Seal Zinc, located on northwest Somerset Island, Nunavut.

Gravity geophysical surveys conducted during the 2015 field season highlighted two anomalous zones, which the company says are priorities for drill testing.

Shares of Viscount Mining climbed steadily before closing up 6% to 43¢, with the company reporting new geological mapping and sampling from its Flint Canyon, Carlin-style property in Nevada by joint-venture partner Summit Mining Exploration — a wholly owned subsidiary of Tokyo-based Sumitomo Corp.