TSX Venture Exchange, June 3-7

Mixed global economic data caught up with S&P/TSX Venture Composite Index during the trading period, with the exchange dropping 1.14%, or 11 points, en route to a 951.40-point weekly close. Unexpectedly strong job numbers in Canada were offset by disappointing employment figures in the U.S., while commodity prices remained incapable of generating much positive momentum due to uncertain recovery conditions amongst major industrial economies.

Canada’s economy posted its best employment data in the past decade. Statistics Canada reported during the week that 95,000 jobs were generated in May — marking the highest rate since mid-2002 — which caused the unemployment rate to fall to 7.1%. The report exceeded analysts’ expectations, with Bloomberg reporting that the job gain tripled the highest of 25 forecasts in its economist survey.

Meanwhile U.S. jobs data was positive though the results were mixed due to a rising unemployment rate. The American economy added 175,000 jobs last month — the U.S. Bureau of Labor Statistics noted that  most additions occurred in low-paying retail positions — even as the unemployment rate jumped to 7.6%. The modest job gains add uncertainty to statements by the Federal Reserve, which may taper off quantitative easing initiatives.

Commodities remained in virtual stasis, as August contracts for gold bullion erased early gains to close down 0.84%, or US$11.70, at US$1,382.35 per oz. July contracts for copper also retreated, with recent gains being erased as the red metal fell near a four-week low at US$3.27 per lb, while crude oil continued to be a bright spot with a 5.2%, or US$4.77 gain, en route to a US$96.20-per-barrel close to end the week.

Kelowna-based explorer Colorado Resources had a rough week after releasing new drill results from the company’s wholly owned North ROK copper-gold project, 200 km north of the town of Stewart, B.C. Colorado surged onto market radars following a discovery hole at the project that cut 333 metres grading 0.51% copper and 0.67 gram gold per tonne, but the company led the value-lost category last week when results from two follow-up holes didn’t meet expectations. 

Colorado plummeted 55¢ before closing out the week at 81¢ per share after it published the final two holes from a four-hole program at North ROK. Hole 3 was collared at the same location as Colorado’s discovery hole, and cut 154 metres grading 0.21% copper and 0.55 gram gold per tonne from surface at the target. Hole 4 was drilled 100 metres southeast of the discovery hole at a minus-45-degree dip, and intersected 324 metres averaging 0.29% copper and 0.36 gram gold per tonne.

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