TSX moves up, Sept.14-18

Canada’s benchmark index gained ground during the week, adding 185.33 points, or 1.4%, to close at 13,646.80 points, as investors took in the U.S. Federal Reserve’s decision to keep interest rates near zero. 

Gold miners enjoyed a strong run, with the S&P/TSX Global Gold Index advancing 7.2% to 128.40 points. The boost came after the spot gold price added US$31 to finish at US$1,139.90 per oz. Base metal firms were less fortunate, as the S&P/TSX Capped Diversified Metals & Mining Index fell 4.8% to 435.10. Spot prices for copper, lead, nickel and zinc all finished lower.

Stonegate Agricom soared 50% to close at 3¢ per share. On Sept. 16, it reported that recent work has confirmed previous groundwater pumping assumptions used in a 2012 feasibility study for its Paris Hills underground phosphate mine in Idaho. As result, Stonegate intends to restart permitting activities for Paris Hills, which it suspended in January 2015 due to uncertainty over the groundwater estimates. The company expects to receive final permits for the Paris Hills Lower Zone mine in 2016. Once up and running, the mine should produce 904,000 tonnes of saleable phosphate rock concentrate a year over an estimated 19-year life. 

Alexco Resource shares rose 41% to 62¢ on strong drill results from its 2015 program at the Bermingham deposit in the Yukon. Notable true width intercepts include 5 metres grading 7,462 grams silver per tonne, 4.8 metres at 2,357 grams silver and 2.4 metres of 3,774 grams silver. Alexco notes the 2015 drilling — combined with the high-grade discovery intercept from 2014 — has outlined a high-grade silver- and gold-bearing zone over 140 metres down-plunge across 40 metres wide. The zone, which Alexco suggests could be a “game changer” for the Keno Hill silver district, averages 3.7 metres in true thickness and remains open for expansion. 

Torex Gold Resources jumped 21% to $1.38 per share after the company resettled 102 families in the La Fundicion village at its wholly owned Morelos gold property in Mexico. The relocation enables waste stripping of the El Limon pit to start in support of reaching full production rates of 14,000 tonnes per day by late 2016. The project remains fully funded and on track for first gold production in late 2015. On Sept. 21, the company signed a letter of intent with the Guerrero state government to have permanent police presence near Morelos, in light of recent security concerns in the area. 

Royalty and streaming firms Royal Gold and Franco-Nevada led the week’s value gainers on the back of higher gold prices. Royal Gold jumped $4.78 to $63.31 per share, and Franco Nevada added $4.38 to finish at $57.92 per share.