TSX Venture rallies, July 10-14

The S&P/TSX Venture Composite Index gained 2.3 points to a 757.52-point close, as spot gold prices rose US$16.24 to US$1,228.70 per oz., and Comex copper prices rose US4¢ to US$2.69 per pound.

Cobalt 27 Capital led the value-added category, with shares gaining 1.20¢ to $10.70 after the company closed five acquisitions comprised of seven net smelter return royalties (NSR) on cobalt production. The agreements include a 2% NSR from New Found Gold’s Triangle, Professor-Waldman and Rusty Lake properties in Ontario; a 2% NSR from Golden Ridge Resources’ North Canol properties in the Yukon; and a 2% NSR from private claim holders at their Sunset property in British Columbia. Cobalt 27 issued a total of 94,445 shares at $9 a share for the royalties. During the trading period, Cobalt 27 also listed on the Frankfurt Stock Exchange under the symbol 27O. The company intends to acquire physical cobalt, and build a portfolio of cobalt-focused streams, royalties and direct interests in mineral properties containing cobalt.

Shares of GoldQuest Mining gained 8¢ to 44¢ per share on assay results from four drill holes at its Tireo polymetallic project in the Dominican Republic. One hole intercepted 12 metres of 6.57 grams gold per tonne, 24.2 grams silver per tonne, 1.43% zinc and 0.19% copper. The hole is located 50 metres from the company’s Cachimbo volcanogenic massive sulphide discovery, where a January discovery drill hole cut 5 metres of 14 grams gold, 75 grams silver, 12% zinc and 1% copper. Another hole, drilled 100 metres east, intercepted the same mineralized horizon and returned 56.2 metres of 0.32 gram gold. Two of the remaining drill holes did not intersect mineralization, but the core shows alteration that suggests a volcanic eruptive centre was present in the area. GoldQuest is preparing for the next exploration phase.

Novo Resources discovered gold nuggets up to 4 cm long in conglomerates from its first trench at its Purdy’s Reward prospect, 45 km south of Karratha in Western Australia. News of the find drove shares up 38¢ to $1.21. Novo found the nuggets in the top metre of an 11-metre thick sequence of conglomerates. The company collected a 700 kg bulk sample from a 2- by 2-metre exposure of the target horizon, and plans to undertake a systematic trench bulk sampling program in early August along with reverse-circulation drilling in shallow drill holes. Purdy’s Reward is part of an 8 km trend identified by Novo as being prospective for mineralization analogous to South Africa’s Witwatersrand basin, where gold was deposited in Archean-age river deltas, washed down from surrounding gold-rich greenstone belts to the north and west.