TSX Venture rises with metal prices, Feb. 1-5

The S&P/TSX Venture Composite Index closed near a four-week high during the trading sessions, as it gained nearly 2%, or 8.63 points, en route to a 508.15-point close. Markets were buoyed by rising metal prices, while growth figures in Canada and the U.S. failed to meet expectations. Canada’s jobless rate hit a two-year high in January as Alberta shed more jobs, and the U.S. Labor Department reported that employers added just 151,000 jobs last month.

A weaker outlook for the U.S. economy propelled gold futures higher, with April contracts for bullion jumping 3.7%, or US$41.40, before closing at US$1,157.80 per oz. March contracts for copper gained 2.4%, or US4.9¢, en route to a US$2.10 per lb. close, while March contracts for West Texas Intermediate crude oil lost 2.3%, or US73¢, before finishing at US$30.89 per barrel.

Visible Gold Mines led the volume-traded category after receiving cash from the Quebec government pursuant to its exploration tax credits. The company saw nearly 15 million shares traded and closed up 1¢ at 3.5¢ per share.

On Feb. 3 Visible Gold announced it had received a $750,000 cash payment from Revenue Quebec for exploration expenses at its Project 167 property in the James Bay region. The company reported $1.5 million in cash reserves after the tax reimbursement.

Visible Gold said its geological team and drill crews were at Project 167 for follow-up diamond drilling to test induced-polarization targets on the property’s Central Block.

Abitibi Royalties rose after announcing a royalty acquired from its online “Royalty Search” platform, which it launched in June 2015. The company gained 23¢ before closing at $3.28 per share.

On Feb. 5 Abitibi reported it had entered into a binding letter of intent with Frontline Gold to acquire another 1% net smelter royalty (NSR) on the Menderes gold property for $16,000. The company holds a 2% NSR interest in the project. The deal marks the eleventh royalty purchase “near an existing mine” that Abitibi has closed since launching its online initiative six months ago.

Beleaguered junior Pacific Booker Minerals led the value-lost category after attempts to permit for an open-pit mine at its Morrison copper-gold project, 65 km northeast of Smithers, B.C. The company lost 36¢ before finishing at $1.51 per share.

On Feb. 4 Pacific Booker reported it has filed two requests under the Freedom of Information and Protection of Privacy Act to obtain information on the decision and the professional qualifications of three reviewers who are assessing Morrison’s application for an environmental assessment certificate.

The company’s move is the most recent in a process that began when the B.C. government shot down the Morrison development in 2013.