TSX Venture registers small loss, April 7-11

The S&P/TSX Venture Composite Index had a mixed week before closing down 9.39 points at 997.77 points. Mid-week gains were driven by rising precious metal and energy prices, while underwhelming global economic indicators triggered aggressive selling later in the period. The Bank of Canada announced it is unlikely to raise interest rates until the third quarter of 2015, while weak Chinese trade data fuelled concerns that the world’s second-largest economy could struggle to hit its 7.5% growth target this year.

June contracts for gold bullion moved towards a three-week high by jumping US$14.50 before closing out the trading period at US$1,318.60 per oz. Crude oil futures were also on the rise, with May contracts for West Texas Intermediate hitting a four-week high at US$103.39 per barrel. May contracts for copper closed up US4¢ at US$3.04 per lb.

Tasman Metals led the value-lost category during the week after dropping 30¢ on 274,700 shares traded, en route to a $1.35-per-share close. On April 8 the company released a prefeasibility study on its Norra Karr heavy rare earth element project, 300 km southwest of Stockholm, Sweden.

Tasman also reached a surface access right agreement with an arm’s-length private Swedish landowner. Under the agreement, Tasman will issue 36,000 shares in exchange for the exclusive surface-access rights at Norra Karr for all exploratory and developmental activities.

Tasman amended a preliminary economic assessment in July 2013 that modelled a US$266-million development based on in-pit resources of 42 million indicated tonnes grading 0.57% total rare earth oxides (TREO) and 1.7% zirconium, and 16.5 million inferred tonnes averaging 0.64% TREO and 1.7% zirconium.

Explorer Fission Uranium is trading at high volumes as it releases results from drilling at its Patterson Lake South (PLS) uranium discovery just outside the Athabasca basin. The company saw 9.5 million shares traded during the week after it released results from seven holes at PLS that returned “off-scale” mineralization. Fission closed down 14¢ at $1.48 per share.

Explorer WCB Resources rose 7¢ on 120,800 shares traded after closing a sizable non-brokered private placement. The company closed out the week at 31¢ per share after issuing 22.2 million units at 27¢ per unit, for gross proceeds of $6 million.

All units of WCB were bought by Australian-listed producer Sandfire Resources, which operates the DeGrussa copper–gold mine in Western Australia. WCB is advancing its Misima Island gold–copper project in Papua New Guinea.

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