TSX Venture hits new low, Dec. 8-12

The S&P/TSX Venture Composite Index finished in the red after losing 6.9%, or 48.21 points, en route to a 653.78-point weekly close. Energy stocks floundered during a freefall in crude oil prices, as the International Energy Agency slashed its forecast for global oil demand growth by 20% to 900,000 barrels a day. Meanwhile, China reported its economic growth slowed last quarter to a five-year low of 7.3%.

February contracts for West Texas Intermediate crude oil were down 10.4%, or US$6.73, en route to a US$58.08-per-barrel close. Gold futures bounced back during weekly trading, with February contracts for bullion jumping 2.8%, or US$32.80, before closing at US$1,222.50 per oz. March contracts for copper rose US3.3¢ before finishing at US$2.93 per lb.

Probe Mines posted strong gains after consolidating the land position at its Borden gold project near Chapleau, Ont. The company rose 46¢ on 1.3 million shares traded before finishing at $2.98 per share.

On Dec. 10 Probe reported it had closed a $41.6-million cash-and-share deal with forestry company Boises Landrienne to consolidate its 100% interest along the 70 km Borden gold belt. The agreement includes $25 million in cash and 6 million shares priced at $2.76 per share.

Probe needed to lock up the land position since it hosted a big slice of Borden’s High-Grade Zone (HGZ), which was discovered in late 2012. The company intends to drill the newly acquired land to fill holes in its resource model at the HGZ.

Largo Resources  dropped 23¢ on 150,253 shares traded before closing at $1.82 per share.

The company is ramping up production at its Maracas Menchen vanadium mine in Bahia state, Brazil, and reported that output runs between 11 and 18 tonnes of vanadium pentoxide per day, which represents between 45% and 65% of production capacity.

Largo had mechanical issues and several days of heavy rainfall in November, which affected production rates. It reported it would begin a prefeasibility study to assess potential salable platinum concentrates at Maracas, and on Dec. 9 it was evaluating a decision by an arbitration tribunal to award an $8.2-million plus interest and part of the buyer’s legal costs under the company’s Currais Novos tungsten supply agreement.

Glenmark Capital saw 4.7 million shares change hands, losing 21¢ to a 37¢ close. The company said it was unaware of any changes accounting for the volume, and “expects to continue to be actively involved in the acquisition and exploration of mineral property interests in the provinces of B.C. and Saskatchewan.”