Toronto Stock Exchange, June 10-14

The Toronto Stock Exchange took a beating during the week, with the S&P/TSX Composite Index tumbling 186 points to 12,187.36, as worries resurfaced of the U.S. Federal Reserve tapering its bond-buying program.

The S&P/TSX Global Gold Index skidded nearly 8 points to 190.35 as the spot price of gold fell US$6 per oz. to US$1,391.50. Following suit, the S&P/TSX Capped Diversified Metals & Mining Index dropped 25 points to 760.02.

Corvus Gold kept climbing after publishing an optimized preliminary economic assessment (PEA) on its North Bullfrog gold-silver project in Nevada. The study outlines a larger and more attractive open-pit heap-leach operation that includes the benefits of silver production. The latest study pegs the pre-tax net present value (NPV) at US$146.8 million and the pre-tax internal rate of return (IRR) at 23.1% using a 5% discount rate and a US$1,300 per oz. gold price. That compares to a NPV of US$62 million and an IRR of 13% estimated in a PEA last December, using the same metrics. The junior jumped 38% to end the week at 77¢.

Trailing close behind was Armistice Resources, up 33% to 4¢. During the week, the junior signed a custom-milling agreement with QMX Gold to process ore from its McGarry gold mine in Ontario’s Kirkland Lake area at QMX’s facilities in Val-d’Or, Que. Following regulatory approval, Armistice will first ship 10,000 tonnes of stockpiled ore from McGarry to the mill, after which it would deliver 5,000 tonnes per month. The agreement is for at least one year and requires Armistice to provide at least 30,000 tonnes. 

Shares of Mediterranean Resources surged 29% to 5¢ during the session after receiving an unsolicited takeover offer from an Australian exploration company. The junior’s main asset is the Red Mountain gold-copper project in northeastern Turkey.

Vancouver-based Lupaka Gold saw its shares soar 47% on June 10 on no material news, and after losing nearly half of the gains in the following two days, the company reported SRK Consulting completed a structural geological assessment to help it understand the geology and mineralization controls at its Crucero gold project in southern Peru. Lupaka rose 25% to 38¢.

Cline Mining sank 78% to 1¢ after saying it would voluntarily delist it shares from the TSX at the end of June 21. Earlier this year, the TSX placed Cline under a remedial delisting review, which was deferred until Cline completed a proposed rights offering to its existing shareholders. However, earlier this month Cline cancelled that offering and opted to exit the TSX.

Alacer Gold was one of the top value gainers, rising 35¢ to $2.67. The boost came after the miner said it would sell its higher-cost Higginsville and South Kalgoorlie gold mines in Australia to focus on its flagship Copler gold mine in Turkey.

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