TSX Venture jumps higher, Aug. 20-24

The S&P/TSX Venture Composite Index rose 5% to end the trading week at 711.37.

Shares of Lithoquest Diamonds fell 67% to 16¢ per share after the company reported disappointing results from its phase-one drilling program at its wholly-owned North Kimberley diamond project in Western Australia. Lithoquest said ground conditions prevented the truck-mounted drill rig from accessing two high-priority drilling targets. It expects a track-mounted drill rig to arrive at the site in the next two weeks. No kimberlite was found in the five drill holes taken from the other three high-priority targets.

Shares of Great Bear Resources rose 255% to $1.95 per share after the company reported two high-grade drill holes from its Dixie gold project in Ontario’s Red Lake district. The first reported drill hole intersected 26.9 grams gold per tonne over 16.4 metres from 120 metres’ depth, including separate sub-intervals of 51.4 grams gold per tonne over 5.1 metres and 112.6 grams gold per tonne over 1 metre. The second reported drill hole, drilled 15 metres vertically below the first one, intersected 44.5 grams gold per tonne over 7 metres, including 2 metres of 143.2 grams gold per tonne.

Two days after reporting the drill results, Great Bear said it raised $10 million in a private placement. It will use the proceeds to fund more exploration at the Dixie project.

Great Bear describes the Dixie project as a typical Archean mesothermal gold vein system that shares the same geological and metallogenic characteristics as the nearby Red Lake, Madsen and Rahill-Bonanza mines.

Shares of Skeena Resources rose 55% to 51¢ per share, on no apparent news. Skeena is focused on developing three projects in British Columbia’s Golden Triangle — the past-producing Eskay Creek gold project, the past-producing Snip gold project and the GJ copper-gold project.

The company is carrying out a first-phase drilling program on two unmined zones at Eskay Creek. Skeena secured an option to buy 100% of Eskay Creek from Barrick Gold in December 2017. From 1994 to 2008, Barrick produced 3.3 million oz. gold and 160 million oz. silver at average grades of 45 grams gold per tonne and 2,224 grams silver per tonne at Eskay Creek.

In August, Skeena reported drill results from the Eastern Twin zone at its wholly owned, past-producing Snip gold mine. The results were highlighted by 10.5 grams gold over 4.1 metres from 79 metres’ depth and 13.8 grams gold over 18 metres from 140 metres’ depth.

An April 2017 preliminary economic assessment for the GJ copper-gold project showed potential for a 25-year mine that could return $546 million in net present value, after a $216-million capital expense. Skeena is seeking a partner to bring the project to the prefeasibility stage.