TSX Venture hits four-week low, Nov. 6-12

The S&P/TSX Venture Composite Index lost 1.9%, or 10.35 points, as commodity futures struggled and overseas economic growth remained stagnant. The Chinese government reported underwhelming data that indicates deflationary pressure in the world’s second-largest economy. Meanwhile, markets contemplated how stronger-than-expected U.S. employment data could impact a prospective interest rate hike from the U.S. Federal Reserve.

December contracts for gold bullion closed at a two-month low after dropping US$7.10, en route to a US$1,080.80 per oz. close. Crude oil futures tumbled on oversupply concerns, with December contracts for West Texas Intermediate losing 8%, or US$3.55, before finishing at US$40.74 per barrel. Meanwhile, copper futures closed near a six-year low of US$2.17 per lb., after dropping 3%, or US6.8¢ per lb.

Explorer Gold Standard Ventures led the value-added category after announcing what it says is a “new oxide discovery” at its Railroad project at the southern end of Nevada’s Carlin gold trend. The company gained 17¢ on 1.34 million shares traded before finishing at 76¢ per share. Gold Standard announced results from hole 15-11, which cut 157 metres of 1.51 grams gold per tonne. The drill collar was 510 metres north of the company’s Dark Star deposit, which is part of the Pinion oxide gold deposit. Gold Standard noted that the “new gold zone has an order of magnitude better grade and thickness than anything previously drilled at Dark Star.” The company is planning two holes at 100-metre spacings moving south from the discovery so that it can chase mineralization along 6 km of potential strike length.

Project generator Reservoir Minerals led the value-lost category after announcing an earn-in and joint-venture agreement with Rio Tinto relating to its Timok magmatic complex properties in Serbia. Shares fell 30¢ on 106,463 shares traded to $4.14 per share. The agreement  ecompasses four wholly owned exploration permits in the Timok complex: Nikolicevo, Kraljevica, Coka Kupjatra and Tilva Njagra. Rio can earn up to a 75% interest in the projects in stages by sole-funding expenses of up to US$75 million. Most of the exploration work is backloaded, however, as Rio will only have to spend US$17 million on the project to earn a 65% stake within three years. The remaining 10% interest can be achieved via US$58 million in expenditures by 2025.

Sunridge Gold topped the volume-traded column after agreeing to sell a majority share in its flagship Asmara gold project in Eritrea. The company saw 15 million shares change hands, gaining 8¢ before closing at 25¢ per share. Sunridge is selling its 60% interest in Asmara for $85 million in cash to China’s Sichuan Road & Bridge Mining Investment Development. The company received the mining licences for Asmara in October, and had been shopping for financing to build a phased operation that would have cost US$450 million.