TSX inches higher while gold dips, May 14-18

Canada’s benchmark index rose 0.47% to 16,162.31 during a week that saw little movement in Canadian markets. The S&P/TSX Global Mining Index rose 0.12% to 75.25 and the S&P/TSX Global Gold Index fell 2% to 186.95. West Texas Intermediate crude rose 0.45% to US$71.28, while the gold price fell 2% to US$1,291.9 per oz. gold.

Shares of NioCorp Developments rose 18.2% to 65¢. The company’s shares soared after the Trump administration classified niobium, scandium and titanium — minerals NioCorp intends to mine at its Elk Creek project in Nebraska — “critical minerals,” along with 32 others. The Trump administration says these minerals will have “key uses in national defense and civilian technologies,” for which “the U.S. is currently 100% dependent on foreign nations, such as China and Russia.”

The company tabled a feasibility study for Elk Creek in mid-2017 and is working on detailed engineering for the project’s proposed underground infrastructure. The project has a $1.7-billion after-tax net present value, with a 21.7% after-tax internal rate of return and 32-year mine life. It has 31.7 million probable tonnes grading 0.79% niobium, 2.81% titanium dioxide and 71.6 grams per tonne scandium.

Shares of Ero Copper rose 16.3% to $8.85. The company recently found a parallel copper mineralization zone within the Pilar underground mine on its Vale de Curaca property in Bahia State, Brazil. The zone, called the West Limb, is 200 metres west of Pilar’s infrastructure. It stretches 1,300 metres over a north–south strike length and reaches at least 500 metres deep.

The company found the zone by combining 61 historic drill holes with data from its own structural models of the known resource. It plans to infill drill the West Limb to verify historic drill results.

Ero’s Vale do Curaca property has 8.86 million proven and probable tonnes grading 2.49% copper for 220,500 tonnes copper.

Shares of Northern Dynasty Minerals fell 20.6% to 85¢. The company recently extended its option agreement framework deadline with First Quantum Minerals until the end of May — the second time the company has extended the deadline since the beginning of April.

Under the agreement, First Quantum can earn a 50% interest in Northern Dynasty’s Pebble polymetallic project in Alaska. First Quantum signed the agreement in December 2017 and paid a US$37.5-million installment. Northern Dynasty says the option agreement will be finalized in the second quarter of 2018. To earn its interest, First Quantum must invest US$1.5 billion in the Pebble project. The option is valid for four years, but can be extended for as many as two one-year terms.

Northern Dynasty is permitting the project. It began the three-year process in January 2018. TNM