TSX shows strong finish

Investors shrugged off the tendency to sell at the close of the year causing the TSX Composite Index to rise from 13,231.49 points to 13,443.22 points for the Dec. 20-31period.

Perhaps investors were emboldened by year end figures on the Canadian economy which showed real GDP growth for the year coming in just under 3%. That growth, however, was driven more by business and household spending than by exports, which were not as strong as expected.

Gold also partook in the good news vibe as its price rose roughly US$30 to finish at US$1,410.25. Gold miners, however, didn’t feel the full effects of the latest rally as the Global Gold Index was down a point to 420.62 points.

The Capped Metals & Mining showed no signs of sluggishness as it headed into the New Year. The Index was up 24 points to 1,483.15 as the price for copper continued to rise alongside better prices for lead and zinc. Prices for nickel, aluminum and tin were all slightly off.

Talon Metals was one of the period’s best feel-good stories as its shares shot up 66% to $1.64. The bump came after Talon released its first resource estimate on the Trairão Iron project in Brazil. Inferred resources came in at 168 million tonnes grading 42% iron and were calculated to a depth of 50 metres. The estimate includes a higher grade upper zone with an inferred mineral resource estimate of 22 million tonnes grading 50% iron.

With its financing picture coming into clearer focus Moly Mines jumped 57% for the period to finish up at $1.62. The company took a big step towards securing the US$500 million it needs to build its Spinifex Ridge Molybdenum project by signing a term sheet with China Export and Import Bank and China Development Bank. The term sheet gives Moly Mines the ability to drawdown US$466 million.

Canarc Resources also enjoyed the holiday period with a 47% gain lifting it to 28¢. The company announced it was buying the Relief Canyon gold mine assets in Nevada from Firstgold for US$11 million. Relief Canyon is an open pit, heap leach gold mine that is largely already built and permitted. The asset was acquired through a bankruptcy court auction and has a non-compliant historic gold resource of 4.23 million tonnes grading 0.62 grams gold for 100,000 oz. of gold.

Paramount Gold and Silver continued its recent strong run by gaining 46% for the period to finish at $3.99. The company’s shares have climbed ever since it announced the discovery of a strike extension from Coeur d’Alene Mines Palmarejo Mine at its San Miguel Project. The company called the discovery the most significant to date, and then followed up a week later with word that the zone had an even greater strike potential than it originally believed. Paramount says it is developing multiple targets for drill testing in early 2011.