Toronto Stock Exchange, Nov. 18-22

The S&P/TSX Composite Index ended the trading week relatively flat, as concerns about the U.S. Federal Reserve curbing its monetary stimulus lingered. Canada’s benchmark index fell 4 points to 13,478.34 points, after touching 13,517.02 on Nov. 22— its highest level in nearly two years.

The U.S. spot price for gold plunged US$46.70 per oz. to US$1,243.70, dragging down the gold miners. The S&P/TSX Global Gold Index fell 12 points to 160.94. The S&P/TSX Capped Diversified Metals & Mining index didn’t do so well either, losing 18 points to end at 765.02.

Vancouver-based Pretium Resources was one of the week’s top gainers and value adders. It soared nearly 70%, or $2.27 to $5.53, on strong initial results from a bulk sample at its Brucejack gold project in northern B.C. The sample produced 4,215 oz. gold from 8,090 tonnes, beating the estimated production of 4,000 oz. gold from the entire 10,000-tonne sample. Pretium expects more results in early December.

CIBC analyst Jeff Killeen recently upgraded Pretium to “sector outperformer” from “sector performer,” while maintaining an $8 price target. “We believe the positive bulk-sample data point represents a significant de-risking milestone for PVG and removes some of the overhang resulting from the recent resignation of third-party consultant Strathcona,” Killeen writes in a note.  

Erdene Resource Development climbed 44%, after reporting promising trenching results on its 100%-owned Altan Nar gold-polymetallic project in Mongolia. Results indicated three of the four trenches uncovered mineralized stockwork zones ranging 44 to 50 metres, which all contained an average 1 gram gold per tonne, or more. “These early results have exceeded our expectations and have allowed us to meet our stated objective of establishing initial targets for open-pit development at Altan Nar, while pending results will allow us to prioritize new areas for the next phase of resource drilling,” said Peter Akerley, Erdene’s CEO.

On Nov. 19, junior explorer Peregrine Diamonds updated the market on a kimberlite sample from its flagship Chidliak project on Baffin Island. The sample weighs 508 wet tonnes and was collected from the CH-6 kimberlite earlier this year. Peregrine says diamond recovery from 1.1 tonnes of concentrate from 262 wet tonnes of kimberlite is ongoing, with diamond grade results due by mid-December. Around this time, the junior will start the diamond recovery for the remaining tonnes.

Peregrine added it has discovered three more kimberlite bodies at Chidliak during its mid-year exploration project. This brings the number of kimberlites discovered this year to six, and the project’s total to 67. Peregrine gained 30% to 39¢. Salman Partners has a “speculative buy,” and a $1.85 target on the stock.