Modest gains for TSX over July 4-8 period

The TSX Composite Index rose a modest 56 points for the July 4-8 period as upward momentum was cut short by concerns about the strength of the global economic recovery due to higher energy prices and continued worries over both European and US debt.

But while the Index overall didn’t exhibit much strength, the price of gold continued to rise as faith in government debt continues to erode. The Global Gold Index reflected the mood of investors as it rose 14 points to finish at 375.24. The price for gold rose US$55 to US$1.541.50 per oz. for the period.

The Capped Metals & Mining Index, however, did not move in sync with base metals. The Index fell 2 points to finish at 1,438.05 points despite the prices for copper, aluminum, nickel, tin, lead and zinc all being higher.

Avion Gold was the period’s most actively traded stock, and managed a gain of 24¢ finishing the period at $2.18. The activity came on the back of two key announcements the first of which was an initial reserve estimate for deposits at its Tabakoto Project in Mali. Open pit and stockpiled proven and probable reserves came in at 2.6 million tonnes grading 2.9 grams gold while underground reserves at the project came in at 4.6 million tonnes grading 4.5 grams gold. Two days later the company announced that it had produced 25,823 oz. of gold at Tabakoto in the second quarter. That amount was higher than its target of 24,500 oz. and puts it on pace to meet its guidance of 100,000 oz. of production for 2011.

The news was also good from Bannerman Resources as the company announced it received an offer from Hanlong Mining Investment – a subsidiary of Chinese conglomerate Sichuan Hanlong Group. While the all cash A$0.612 per share offer is highly conditional, it was enough to send the company’s shares up 44% to finish the period at 39¢. Bannerman’s key asset is the Etango Uranium Project in Namibia. The company says the offer is taking advantage of the company’s low share price in the wake of the Fukushima nuclear disaster in Japan.

European Goldfields followed close behind Bannerman’s upward trend as it was the period’s second largest gainer by percentage. The company’s shares were up 35% after confirming that the Ministry of Environment Energy and Climate Change in Greece approved its environmental impact study for its Stratoni Mine, the Olympia project and its Skouries project. An expansion of the port facilities at Stratoni was also approved. Stratoni is a high grade lead, zinc and silver mine in north-eastern Greece.

And Mawson Resources released a technical report for its Alto Quemado copper-gold project in Peru. The report recommends a US$750,000 exploration program which includes at least 1,850 metres of diamond drilling. The news helped to lift the company’s shares by 25% to $2.10.