TSX Venture bounces back, Jan. 25-29

The S&P/TSX Venture Composite Index recovered from historic lows during the trading period, as it gained 3.3%, or 15.85 points, en route to a 499.52-point weekly close. Commodity futures were on the rise across the board, with markets also buoyed by global stimulus measures announced in the face of volatile economic conditions. The Bank of Japan adopted a negative interest-rate model, while the European Central Bank indicated it could boost stimulus spending by March.

Gold rebounded alongside the Canadian dollar after less-than-stellar economic growth in the U.S. April contracts for bullion jumped nearly 2%, or US$19.20, before finishing at US$1,116.40 per oz. March contracts for West Texas Intermediate crude oil gained 4.4%, or US$1.43, en route to a US$33.62-per-barrel close, while March contracts for copper finished up 3.3%, or US6.6¢, at US$2.06 per lb.

John McCoach, president of the TSX Venture Exchange, held a raucous town hall meeting in Vancouver on Jan. 28. There has been dialogue over measures to fix the struggling exchange after the TMX Group released a White Paper in December outlining a seven-step cost-cutting program. The exchange has come under fire for high listing fees and onerous regulatory frameworks.

Mexico-focused Canasil Resources gained on heavy trading after the explorer tabled drill results from its Sandra-Escobar silver joint venture in Durango state. Shares gained 227%, or 13¢, on 6.4 million traded before finishing at 18¢ per share.

On Jan. 25 Canasil’s joint-venture partner Orex Minerals reported maiden assay results from a drill program at the project. Hole 15-1 yielded 43.1 metres true thickness grading 359 grams silver per tonne from surface. Of the 61 core samples in one-metre intervals from surface included in the intercept, 60 exceeded 100 grams silver.

Silver mineralization is hosted along the flank of a rhyolite-volcanic dome in an area of Sandra-Escobar that has no previous drilling. Mineralization is hosted in an altered and highly permeable volcanoclastic unit, with disseminations of silver-bearing minerals and broadly spaced stockwork veinlets.

Nexus Gold was near the top of the volume-traded column after announcing due diligence on “undervalued” advanced-stage gold acquisitions. The company saw just over 10 million of its shares change hands, losing 2¢ before closing at 7¢ per share.

The company drilled at its Walker Ridge gold project in Nevada’s Jerritt Canyon–Independence trend last year, and has leveraged what it calls “leading edge” element detection technology (EDT). In late 2014, Nexus hired Vital GeoSURVEYS to perform an EDT geophysical survey. The technology allows for in-situ detection and mapping signals specific to a targeted element.