TSX Venture loses ground, Nov. 24-28

After a two-week rally, the S&P/TSX Venture Composite index plunged 6%, or 47.26 points over the trading period, en route to a 741.87-point close. Losses were largely driven by a sell-off in energy stocks, as crude oil spot prices and futures sank to multi-year lows. 

Meanwhile, Statistics Canada reported that the Canadian gross domestic product rose to a seasonally adjusted 0.4% in September, up from -0.1% in August.

January contracts for West Texas Intermediate crude oil tumbled 13.6%, or US$10.41, before finishing the week at US$66.15 per barrel. The drop was cause by the Organization of the Petroleum Exporting Countries opting to keep production steady despite oversupply concerns. February contracts for gold lost 2.2%, or US$26.30, en route to a US$1,175.50 per oz. close, while March contracts for copper lost 6.4%, or US19.3¢, before closing at US$2.85 per lb.

Explorer Timberline Resources received a boost after news on its U.S. stock listing, and an update on its environmental permitting at its Butte Highlands gold joint venture in Montana. The company gained 12¢ during the week before closing at 79¢ per share. On Nov. 25 Timberline reported that it received a letter from the American Stock Exchange advising that it has regained compliance with continued listing standards. In February the company was notified by regulators that its listing was at risk due to a rocky financial condition.

Timberline also announced that the Montana Department of Environmental Quality is on schedule with its work on the final environmental impact statement (EIS) at Butte Highlands, where the company and its joint-venture partner are working towards a hard-rock operating permit. Timberline expects to receive its EIS this month.

Project generator Reservoir Minerals led the value-lost category after releasing exploration results from its wholly owned Bobika massive sulphide prospect in Serbia. The company dropped 30¢ on 128,000 shares traded during the week before finishing at $4 per share.

On Nov. 24 Reservoir released its final batch of assays from the Bobija area, which are highlighted by 15.1 metres through massive sulphide mineralization averaging 4.7% zinc, 4.2% lead, 122 grams per tonne silver and 1.91 grams per tonne gold from surface in hole 7.

The eight-hole mid-year program was designed to validate the presence of sulphide mineralization recorded in historical drill holes and workings, and test for extensions of mineralization from the zones identified in historical data.