TSX Venture posts gains Sept. 17-21

VANCOUVER — The S&P TSX Venture Composite Index closed the week at 1,345.72, up 2.05% or 27.62 points. The index continued to grind out gains despite volatile commodity prices and macro-economic uncertainty surrounding the Euro zone recovery, and growth profiles in some of Asia’s most prolific markets.

Gold prices dipped US$1.50 before ending the week at US$1,773 per oz., while copper prices slid US5.5¢ en route to a US$3.76 per lb. close. Brent crude prices fell 4.5% on the week, closing at US$111 per barrel after falling to a mid-week low of US$106 per barrel.

China’s economic slowdown continued to grab market attention, as an HSBC survey indicated that manufacturing is set to contract for the eleventh consecutive month in September. China announced a number of initiatives to stabilize its export growth, including increased loan capacity for exporters and an expedited payment system on export tax rebates.

Vancouver-based streaming outfit Sandstorm Gold topped the value-added category, marking the second straight week of strong gains for the company. Sandstorm gained $2.02 per share during the period before closing at $12.35. After announcing a US$10 million streaming agreement with Luna Gold on Sept. 10, Sandstorm followed up with US$60 million agreement with Colossus Minerals to assist with financing at the gold company’s Serra Pelada mine in Para, Brazil.

Gold explorer Chesapeake Gold posted strong weekly gains, rising $1.62 en route to a $9.72 close. Chesapeake released an update on a prefeasibility study at its flagship Metates gold-silver project in Durango, Mexico. The company reported that all work related to design and engineering had been completed, noting that a number of water conservation measures had been successfully incorporated into the development planning. The Mexican government also updated Chesapeake on routing and anticipated delivery of natural gas from a pipeline that directly affects engineering of the company’s power plant.

Orko Silver dropped 11% or 20¢ on the week after announcing an updated resource estimate at its La Preciosa silver-gold project in Durango, Mexico. Orko has been wrestling with the project since Pan American Silver dropped its right to a stake in La Preciosa in early April. Orko reported a “super pit” is now being considered as opposed to an underground mine proposed under previous studies. La Preciosa’s open pit holds 29 million indicated tonnes grading 105 grams silver per tonne and 0.21 grams gold for 110 million silver equivalent oz.