TSX clings to tiny gain, Oct. 14-17

After six straight weekly declines, Canada’s main stock exchange ended the trading week in positive territory — but just barely. The S&P/TSX Composite Index rose 0.32 of a point to 14,227.68, while the S&P/TSX Capped Diversified Metals & Mining Index fell 14.27 points to 694.68 and the S&P/TSX Global Gold Index dropped 0.07 of a point to 162.53.

Additional results from the 2014 drill program at Seabridge Gold’s KSM project in northwestern B.C. sent the company’s shares up 46¢ to $9.26. Seabridge reported that results from the Iron Cap Lower zone outline a major gold-copper discovery beneath Iron cap, one of KSM’s four large porphyry deposits. The company has traced the deposit along a 750-metre strike length but has not yet found the limits to the north and at depth. The best intersection from the latest results was 592.7 metres averaging 1.14 grams gold per tonne and 0.37% copper.

Coalspur Mines posted the biggest percentage gain of the week — jumping 50% to 3¢ on no news. In early October the Alberta Energy Regulator issued a mineral-surface lease for the first phase of the junior’s Vista thermal coal project. The mineral-surface lease is the last material approval needed from the regulator to begin construction. The company still needs to secure a development permit from Yellowhead County before it can start construction. In June Coalspur launched a strategic review to consider alternatives including: full funding for the Vista project; selling all or a part of the company’s assets; forming a joint venture; selling the company, a merger or other business combination transactions involving a third party and a refinancing or recapitalization.

Levon Resources advanced 38.1% to 29¢. The junior is exploring its 100%-owned Cordero bulk-tonnage silver-gold-zinc-lead project near Hidalgo del Parral in Chihuahua, Mexico, and announced on Oct. 15 that it is acquiring a 9.9% stake in Pershing Gold Corp. The previous week, Pershing Gold announced that state and federal regulatory authorities had approved the final permits to mine at Relief Canyon in Nevada’s Pershing County. The permits authorize mining within the existing open-pit mine. Relief Canyon includes three open-pit mines and a fully permitted and built heap-leach processing facility.

Shares of precious metals royalty and stream company Royal Gold rose 96¢ to $75.23. The company reported that its subsidiary, RGLD Gold AG, had received 13,600 oz. gold for the quarter ended Sept. 30 from the Mt. Milligan mine as part of its purchase and sale agreement with Thompson Creek Metals. Thompson Creek reported production for Mt. Milligan in the quarter of 60,400 payable oz. gold and sales of approximately 57,900 payable oz. gold in the three months ended Sept. 30.

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