TSX Venture gains ground,
Apr. 22-26

VANCOUVER — The S&P TSX Venture Composite Index showed signs of recovery following a tough month during the Apr. 22-26 trading period, with a 2.8%, or 26.15 point, jump leading to a 965.22 point weekly close. Rising commodity prices and a stronger Canadian dollar contributed to the increase, while uncertainty continues to surround economic recoveries in the U.S. and China.

A report released by HSBC early in the week indicated that China’s manufacturing growth decelerated in April, with a survey of 420 manufacturers revealing that the monthly purchasing manager’s index declined to 50.5 from March’s 51.6, where numbers above 50 represent expansion.

In the U.S., the economic recovery fell short of expectations despite an increase in consumer spending. The world’s largest economy saw its gross domestic product jump 2.5% over the first three months of 2013, with personal consumption expenditures jumping 3.2% in the largest improvement since 2010. Government spending cuts continue to drag on the U.S. economy following an 8.4% drop in Federal government spending and investment during the first quarter.

The Canadian dollar strengthened the most in just over three months on the back of a rally in commodity prices. The currency jumped roughly 1% to US98.36¢, mainly on the back of crude oil prices, which rallied 5.3% or US$4.67 per barrel en route to a US$92.89 weekly close. Gold futures also continued to recover, with June contracts for bullion rising 3.8% or US$53.90 before closing at US$1,461.75 per oz. Copper continued to struggle, though the red metal managed to gain 1.63%, or US5¢, en route to a US$3.18 per lb. close.

B.C.-focused copper explorer Colorado Resources was the big winner during the week, with the company’s shares sky-rocketing over 300% or 50¢ before closing at 65¢ per share. Colorado experienced heavy 10.8 million share volume following results from the first-ever drill hole at its wholly-owned North ROK project 200 km north of  Stewart, British Columbia.

Colorado’s inaugural hole was collared at the northern end of an area showing coincident soil, magnetic, and chargeability anomalies the company identified last year during surface sampling activities. Colorado caught the market’s attention by cutting 333 metres grading 0.51% copper and 0.67 gram gold per tonne, including 242 metres and graded 0.63% copper and 0.85 gram gold from surface.

Vancouver-based explorer Eurasian Minerals also had a strong week, with the company’s shares rising 25¢ before closing at $1.66. Eurasian announced that Antofagasta Minerals had opted to select its Iekelvare copper-gold property in Sweden as a designated project under a strategic alliance agreement signed in February 2011. Antofagasta can earn up to a 70% interest in Iekelvare through a combination of cash payments and work commitments that result in a feasibility study.

Iekelvare is a 52-sq.km exploration license in Norrbotten County in northern Sweden, which lies in an area known for iron-oxide-copper-gold (IOCG) style deposits. Eurasian has completed reconnaissance geologic mapping, as well as rock and boulder sampling on the property, and outlined a number of targets for follow-up exploration.

Markets were not so kind to diamond explorer Arctic Star Resources, which lost roughly 50% of its market capitalization following a 13¢ drop before the company finished up the week at 13¢ per share. Arctic reported results from two drill targets on its Redemption property near Lac de Gras in the Northwest Territories. In both cases the company failed to intersect kimberlite.

The first target was collared on a 180 metre wide conductor position 800 metres up ice and to the east of the known termination of the South Coppermine diamond indicator mineral train. Arctic figures the anomaly was mostly related to sulphide. A second target was drilled on a 280 metre wide conductor at Arctic’s Shoe property.

The company mobilised an ultra-light drill rig in early April, but due to various delays was only able to test two of its eight targets. Arctic has opted to call off its current drill program and apply for a permit that would allow it to utilize larger and more powerful drill rigs during future campaigns.