TSX Venture closes at three-week high, March 30-April 2

The S&P/TSX Venture Composite Index closed at a three-week high during the shortened trading sessions, rising 1.6 points to 683.02 points. Growth in the U.S. manufacturing sector hit a five-month high in March, while energy investors monitor reports that Iran and world powers are closing in on an agreement on Tehran’s nuclear program.

Gold futures hit a four-week high, with June contracts for bullion finishing up 1.3%, or US$15.60, at US$1,200.90 per oz. May contracts for West Texas Intermediate crude oil jumped 1.8%, or US88¢, en route to a US$49.14-per-barrel close, while May contracts for copper traded relatively flat before closing at US$2.73 per lb.

Explorer Kennady Diamonds bounced back after a delineation drill update at its Kennady North property in the Northwest Territories. The company gained 69¢ before finishing at $3.93 per share.

On March 30 Kennady reported that drilling at its Faraday 2 discovery traced the “pipe-like body” over 90 metres of strike from southeast to northwest. Based on intersections from holes 5a and 5b, the company says Faraday 2 is at least 30 metres wide and 70 metres high, and appears to increase in volume on strike to the northwest.

Junior Timberline Resources also had a strong trading period after announcing it had closed a transaction with Gunpoint Exploration for an option to acquire a 100% interest in the Talapoosa low-sulphidation gold project in western Nevada. The company gained 19¢ before finishing at 89¢ per share.

Under the agreement, Timberline will pay Gunpoint US$300,000 in cash and 2 million shares. If the company exercises the option over the next 30 months it will pay Gunpoint another US$10 million.

Talapoosa’s measured and indicated resources total 31.3 million tonnes grading 1.11 grams gold per tonne and 14.97 grams per tonne silver for 1.1 million contained oz. gold and 13.7 million oz. silver. Inferred resources add 11.2 million tonnes grading 0.7 gram gold per tonne and 6.65 grams silver, for 233,532 contained oz. gold and 2.17 million oz. silver.

Toronto-based Atlanta Gold topped the volume-traded column after reaching a refinancing agreement on a $3-million convertible debenture due in December 2016. The company saw nearly 15 million shares traded, though it failed to gain ground before closing at 1¢ per share.

On April 2 Atlanta reported it had struck a deal with lender Concept Capital, wherein the principal and accrued interest on the outstanding debenture will see a $1.5-million principal amount convertible debenture and Atlanta senior-secured notes totalling US$1.5 million. The debenture will bear a 10% annual interest and mature in April 2018.