TSX surges, June 2-6

The Toronto stock market had a strong run during the trading week, with the S&P/TSX Composite Index gaining 234.74 points to 14,838.90, as investors digested the positive U.S. employment data while shrugging off the lacklustre Canadian jobs report.

Figures showed that the American economy added 217,000 jobs in May, largely in line with expectations. Despite the gains, the jobless rate stayed at 6.3%.

Canada on the other hand created 25,800 jobs in May, which were all part-time and didn’t make up for the 29,000 jobs lost in April. Canada’s unemployment rate in May was 7% up from 6.9% a month ago.  

The S&P/TSX Global Gold Index tacked on 2 points to finish at 171.97, despite the spot price for gold sliding a dollar to US$1,252.30 per oz. The S&P/TSX Capped Diversified Metals & Mining Index fell 9.83 points to 841.50.

Inspiration Mining was the week’s biggest percentage gainer, soaring 50% to 12¢ after announcing plans to dewater the ramp at its Langmuir No. 1 nickel mine near Timmins, Ont. The dewatering requires a permit and once obtained, the Toronto-based junior could start an advanced exploration program to access the higher-grade mineralization in the past-producing mine. 

Erdene Resource Development had a good week. The Nova Scotia-headquartered junior jumped 28.5% after publishing the drill results for its second-quarter exploration program at its Altan Nar gold–polymetallic project in Mongolia. The best hole cut 5 metres of 17.7 grams gold per tonne, 69 grams silver per tonne, 2.1% lead and 2.5% zinc within 19 metres of 5.8 grams gold. 

The junior says the results in the quarter “support the continued expansion of the gold–polymetallic mineralization within the 5.6 by 1.5 km target area at Altan Nar.” 

Erdene intends to keep exploring the project for the rest of the year, with the goal of publishing a maiden resource estimate shortly after. 

Alamos Gold made the top value gainers list, adding 32¢ to end at $9.46. The boost came after the gold producer, which operates the Mulatos gold mine in Mexico, appointed director Paul Murphy as the non-executive chairman of its board, replacing Mark Wayne. 

Centerra Gold on the other hand missed that list, losing 88¢, or 18%, to close at $3.99. The gold producer said it would shut down its Kumtor gold operation in Kyrgyzstan if government agencies don’t approve its 2014 mine plan and issue the related operating permits by June 13. The company said it has been working with agencies since late last year to receive the necessary approvals without much success, noting in previous years those approvals were received in the first few months of each year.  

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