TSX Venture finishes in the red, March 9-13

The S&P/TSX Venture Composite Index finished in the red for a second week, as it fell 3.5%, or 24.19, before closing at a 664.60 points. The International Energy Agency speculated that oil prices had not yet hit the bottom, while Statistics Canada reported that the Canadian economy shed 1,000 jobs in February and the national unemployment rate rose 0.2 of a point to 6.8%.

Gold futures had another rough week, as April contracts for bullion dropped 1.4%, or US$16.60, en route to a US$1,152.40 per oz. close. May contracts for West Texas Intermediate crude oil lost 4.7%, or US$2.32, before finishing at US$47.06 per barrel, while May contracts for copper gained 2.5%, or US6.6¢, before closing at US$2.66 per lb.

Project generator Reservoir Minerals led the weekly value-added category after announcing major Freeport-McMoRan had executed a joint-venture agreement on its Timok copper-gold project in Serbia. The company jumped 40¢ on 195,295 shares traded before finishing at $4.30 per share.

The joint venture is based on terms outlined in an earn-in agreement dated March 2010, with Freeport carrying a 55% interest in Timok and aiming to bump its stake to 75% by sole-funding work programs and advancing the project to feasibility. If Freeport delivers the feasibility study it will be entitled to recoup 25% of the costs and expenses from Reservoir up to a maximum US$25 million.

On March 12 Reservoir announced an annual work program at Timok with a US$18.7-million budget that will include 16,400 metres of resource and step-out drilling on the Cukaru Peki permit area, and another 2,000 metres of exploration drilling on each of the Jasikovo and Leskovo permit areas.

Zenyatta Ventures also had a strong trading week after releasing test results on graphite material at its Albany project in northern Ontario. The company gained 26¢ on 954,000 shares traded en route to a $1.75-per-share close.

On March 9 Zenyatta reported that first-step screening on Albany graphite returned positive results for use in multiple fuel-cell components. The screening measured purity, particle size, corrosion resistance and other properties. The tests showed Zenyatta’s graphite was suitable for hydrogen fuel cells, with advanced testing planned.

Purity and particle size of the material provided was reportedly “already in the range needed for fuel cell applications, therefore no further milling or purification was needed.”

Meanwhile, junior Largo Resources sat atop the value-lost column after a corporate update revealed it would need $30 million by 2016 to fund its debt servicing, and other obligations. The company lost 23¢ on 867,100 shares traded before closing at $1.04 per share.