TSX Venture Exchange, Feb. 18-22

The S&P/TSX Venture Composite Index dropped 3.5%, or 40.97 points, during the trading period before closing out the week at 1,144.68, while declining commodity prices put downward pressure on Canadian markets.

Statistics Canada reported that the Canadian consumer price index registered a 0.5% year-on-year increase in January, marking a second monthly decline in inflation and the lowest rate since late 2009. Meanwhile the Canadian dollar fell to a seven-month low at US97.82¢, as concerns mount that the economy would keep losing momentum in 2013.

Metal prices struggled through the week, with April contracts for copper dropping 15¢ before closing at US$3.54 per lb. Gold also lost ground despite a late-week rally, with April contracts dropping 2%, or US$33 per oz., en route to a US$1,580.70 close, while contracts for crude oil dropped US$2.60 per barrel before closing at US$93.33.

Calgary-based precious metal explorer Teras Resources was a mover on the value-added side during the week, jumping 14¢ per share en route to an 85¢ close. On Feb. 19 the company released results from a geochemical program at its wholly owned Cahuilla gold-silver project in Imperial County, Calif. Teras was targeting an area 1 km northeast of its current indicated resource of 63.6 million tonnes grading 0.43 gram gold per tonne and 4.8 grams silver per tonne, for 1.02 million contained oz. gold and 11.86 million contained oz. silver. The company collected 130 surface-geochemical samples along the northeast extension of the Modoc fault in a bid to identify new drill targets. All samples were anomalous in precious metal mineralization, with highlights including surface values of 1.8 grams gold and 37 grams silver.

TomaGold gained momentum on the back of exploration results at its Monster Lake gold property, 44 km southwest of Chibougamau, Que. The company traded 7.2 million shares during the week and jumped 96%, or 11¢, before closing at a yearly high of 23¢ per share TomaGold released the first three holes of a 2,500-metre drill program at Monster Lake aimed at establishing gold potential at depth in its 325 zone. The company is off to a good start, with hole 13-93 cutting 5.9 metres grading 33.6 grams gold from 217 metres vertical depth, hole 13-94 intersecting 5.3 metres averaging 11.5 grams gold from 187 metres vertical depth and hole 13-95 cutting 7.2 metres of 42 grams gold from 278 metres vertical depth. The company also notes the presence of trace chalcopyrite and sphalerite, as well as semi-massive pyrrhotite accompanied by intense black chlorite alteration, which could indicate nearness to a volcanogenic-massive-sulphide-type setting.