TSX slides for July 12-16 period

TSX Composite index fell, if only slightly for the July 16-20 period, winding up 20 points lower at 11,580. The fall came as global markets continue to digest debt concerns in Europe and weak employement numbers in the U.S.

While oil managed to hold value and stop the Index from falling too drastically, the miners were unable to do their part as both gold and base metal prices were softer for the period.

With the situation in Europe improving, gold fell by roughly US$16 to finish up at US$1,189.25. Silver, however, did not follow suit, and managed to climbed by 19¢ to finish at US$18.25.The Global Gold Index was off 9 points to 355.58

The Capped Metals & Mining Index mirrored the Global Gold Index’s performance as it was off 10 points to 886.09 despite the price of copper rising slightly to US$3.02 per lb. Aluminum also managed marginal gains but the price of nickel was flat and the prices for tin, lead and zinc all fell.

Getting its feasibility study done on its Oromin Joint Venture Group project in Senegal had Oromin Explorations up 19% to $1.06 for the period. The study outlined a project with reserves of 1.42 million oz. of gold and resources of 3.27 million oz. In the first three years o operation the mine is expected to turn out 196,000 oz. of gold per year at cash costs of US$409 per oz. The project has a net present value of US$182 million and an IRR of 21.6% using a US$1,000 per oz. gold price and an unusually low discount rate of 3%.

The market also applauded Ivanhoe Mine’s move to gain more freedom from Rio Tinto at Oyu Tolgoi. Ivanhoe exercised its right to end restrictions on its issuing stock to other investors. In two months time Ivanhoe will be free to issue shares to third party strategic investors, which could include major mining companies. Ivanhoe shares climbed 18% to $17.12 on the news. While Rio did not respond to Ivanhoe’s move it may still hold a trump card through the arbitration proceedings it launched against Ivanhoe’s new shareholder rights plan.

Word that it was launching a drill program at its Sergipe Potash project in Brazil had a positive effect on Talon Metals share price as the company climbed 20% to 36¢ for the period. Talon said it has identified seven potash target areas that will be tested at 12 different drill sites.

Polo Resources closed a deal that grossed the company $25 million and saw its shares climb as a result. Polo, which invests in undervalued resource companies, raised the money by selling 3.9 million shares in Extract Resources.

Quarterly results from Lithium Americas failed to inspire investors as the company’s shares fell 15% to $1.19 after announcing it had lost $1.8 million. The company only did its IPO in May and still has $44 million in cash to along with its significant lithium brine deposit assets.