TSX Venture eases down, May 2-6

The S&P/TSX Venture Composite Index edged down 0.2%, or 5.93 points, en route to a 668.94-point close, weakened by falling commodity prices.

Spot gold dropped 0.4%, or US$4.54, to US$1,288.99 per oz. gold compared to the previous trading period, but lifted Friday on expectations that the U.S. Federal Reserve would leave rates on hold in the near-term.

Three-month London Metal Exchange copper contracts dipped US$240 per tonne, or 0.5%, to US$4,792 per tonne, after steel and iron ore prices plunged on worries over China’s economy.

Nevada-focused Gold Standard Ventures was a frontrunner in the value-added category, rising 25¢ to a $1.86-per-share close after staking 19.9% in junior explorer Battle Mountain Gold via a private placement.

Gold Standard bought 10.5 million shares of Battle Mountain at 35¢ per share for a total of $3.7 million, along with another 5.2 million warrants exercisable within two years at 37¢ apiece, pending shareholder approval.

Part of the proceeds will help advance Battle Mountain’s Lewis gold project in the prolific Battle Mountain-Eureka gold trend in Nevada.

The acquisition exposes Gold Standard to potential Carlin-style gold deposits outside its flagship Railroad-Pinion project in north-central Nevada.

First Mining Finance saw 11.3 million shares traded before closing up 3¢ at 79¢-per-share on news of a share-purchase agreement to acquire a subsidiary of Chalice Gold Mines, which owns the Cameron gold project in northwestern Ontario.

If approved by shareholders, First Mining will issue Chalice 32.3 million shares valued at $13 million, which gives the explorer an 8.1% stake in the company.

Chalice tabled a resource for the greenstone-hosted gold deposit last December, outlining 7.8 million measured and indicated tonnes of 2.26 grams gold per tonne for 569,000 oz. gold, and 14.5 million inferred tonnes of 1.92 grams gold for 894,000 oz. gold, assuming a cut-off of 0.5 gram gold.

NexGen Energy shares gained 23¢ to a $2.48-per-share close after the company reported drill results from the higher-grade A2 sub-zone at its Arrow deposit in Saskatchewan’s Athabasca basin.

Drilling cut mineralization at -65 degrees, returning a non-true thickness of 67.5 metres of 11.3% uranium oxide (U₃O₈) at 441 metres deep.

Another drill intercept returned 15 metres of 8.3% U₃O₈ at 466 metres deep, and 119 metres of 2.3% U₃O₈ from 488 metres deep.

The company plans to update Arrow’s maiden estimate released in March, which outlined 201.9 million lb. U₃O₈ within 3.5 million inferred tonnes of 2.6% U₃O₈.