TSX gains during May 29 to June 2 trading week

Stocks in Toronto posted modest advances last week after the United States Congress agreed on a debt ceiling deal, Canadian oil regained losses ahead of an OPEC meeting that was expected to tighten supplies and Toronto home prices emerged from a year-long slump. 

The S&P/TSX Composite Index rose 104.32 points or 0.5% to 20,024.63. The S&P/TSX Global Mining Index increased 2.55 points or 2.4% to 108.01, and the S&P/TSX Global Base Metals Index gained 5.58 points or 3.1% to 185.7. The S&P/TSX Global Gold Index rose 3.52 points or 1.2% to 295.54, and spot gold ended the week at US$15.35 per oz. higher, or up 0.8%, at US$1,963.25 per ounce.  

Centerra Gold rose 19% during the week to close at $8.20 after receiving approval from the Turkish government for an environmental impact assessment of the Öksüt mine 295 km southeast of Ankara. Toronto-based Centerra said on May 31 it expected to restart full operations at the mine, which has been on care and maintenance, within weeks.  

The shares bounced back after Centerra reported last month that the Mt. Milligan mine in British Columbia had lower-than-expected production in the first quarter. Centerra supports three assets on care and maintenance – Kemess, Thompson Creek and Endako – besides Öksüt. 

However, management expects cash consumption to improve this year, grades to improve at Mt. Milligan and rising costs to slow at molybdenum mines in Utah and B.C. 

Troilus Gold gained 12% to close at 56¢ after reporting plans May 31 for a feasibility study and resource update this year on reviving the Troilus gold and copper mine in Quebec. The former mine, located northeast of the Val-d’Or district, produced 2 million oz. of gold and almost 70,000 tonnes of copper between 1996 and 2010. Troilus Gold bought the property in 2017. 

The Montreal-based company has about $30 million as it also explores three main targets Testard, Cressida and Rocket 10 to 40 km southwest of the Troilus mineral corridor.   

“Results from our regional activities have been very encouraging, demonstrating the potential of the Troilus property and the Frôtet-Evans Greenstone Belt as a district-scale gold system,” Troilus CEO Justin Reid said in the release. “The geological understanding of our property continues to improve.”  

Filo Mining added 8.6% or $1.81 to close at $22.85 after saying on Jun. 2 it raised $30 million more than expected for a total of $130 million in a private placement for its Filo del Sol copper project in Argentina.  

Filo reported May 29 assays from the same project showing 291.7 metres grading 0.7% copper equivalent from 910.4 metres down hole FSDH075 in the Bonita Zone, and 354.9 metres at 1% copper equivalent from 496 metres depth in hole FSDH076 in the Aurora Zone.  

“Our recently completed magnetotelluric geophysical survey strongly indicates continuity between Aurora and Bonita across the undrilled gap of 1.3 km between hole FSDH083 in the south and hole FSDH075 in the north,” Filo president and CEO Jamie Beck said in the release. “We are currently setting drills up to test this gap, which offers the potential to almost double the size of the deposit if the grade is there.”