TSX rises in spite of weaker gold prices

The TSX Composite Index managed to scratch out a small gain for the Sept 12-16 as it rose 50 points to reach 12,263.71. The upward move came as fears of a double-dip recession subsided with stronger than expected results out of the Canadian manufacturing sector.

That news rippled through to the providers of metals to manufacturers as the Capped Metals & Mining Index was up 15 points to 1,130.83 points on the back of higher prices for copper, aluminum, nickel, tin and zinc.

Brighter news on the manufacturing side, however, wasn’t so good for Gold and the metal was down US$48 although its period ending price of US$1,814.70 was still substantial. The Global Gold Index tracked the price of the metal and was down 11 points to 428.90 points.

MBAC Fertilizer released its first compliant resource estimate along with a preliminary economic assessment for its Santana Phosphate project in the southeast of Pará State, Brazil. The initial resource outlined inferred resources of 33.5 million tonnes with an average phosphate content of 12.4% – making Santana one of the highest grade phosphate mines in Brazil. The PEA estimated annual production of 500,000 tonnes per year of single superphosphate starting in 2015 and said a future mine would generate an NPV of $423 million at a 10% discount rate. The news sent the company’s shares up 35% to $3.30.

Forsys Metals initial resource estimate, however, didn’t gather such positive market reaction. The estimate came from its Namibplaas uranium deposit in Namibia and tallied an inferred resource of over 87 million tonnes grading 0.013% U3O8 . The company said the study did confirm that Namibplaas hosts similar mineralization to that at its flagship Valencia Project. Forsys shares fell 42% to 50¢ for the period.

The discovery of a high grade extension at Rockgate Capital’s Falea uranium, silver and copper project in Mali sent the company’s shares 26% higher to $1.60. The highlight intercepts from the extension came in at 1.21% U3O8 and 86 grams silver over 4 metres and 1.10% U3O8 and 1,020 grams silver over 1 metre. Rockgate said the new zone is at the southwestern edge of the already defined North zone and represents the second high grade area found at the zone.

Carpathian Gold got the licence it needs to begin construction at its Riacho dos Machados gold project in Brazil and the company’s shares shot up 20% to 73¢ for the period. Carpathian is targeting production by early 2013 at a mine that will turn out 94,000 oz. of gold per year for eight years.

White Tiger Gold announced that it had attained the shareholder approval to combine its business with Century Mining and its shares promptly sold off. White Tiger shares were off 35% to 85¢ while Century Mining shares were off 8% for the period, finishing up at 22¢.