TSX Venture treads water Sept. 24-28

VANCOUVER — The S&P TSX Venture Composite Index fell 0.83% or 11.21 points during the Sept. 24 – 28 trading period before closing the week at 1,334.51 points.  Mixed news from the European Union dampened optimism over a third round of quantitative easing from the U.S. Federal Reserve, and volatile commodity prices fueled investor skepticism over a long-term recovery.

Violent mid-week protests in Athens and Madrid over proposed austerity measures enflamed long-standing fears surrounding the health of the Euro zone, though markets staged a late-week comeback following news out of Spain and Greece that the countries had formally outlined spending cuts and tax increases in-line with international expectations.

Speculation over stimulus measures in China also provided fuel for a late rally, with gold prices hitting a seven-month high of US$1,780.50 per oz. on Thursday before closing the week down slightly at US$1,773.90 per oz. Copper finished the week at US$3.76 per lb. after dropping roughly 2¢.

Vancouver-based American Vanadium jumped 30¢ en route to an 80¢ weekly close following news it had successfully patented its vanadium purification process. The patent involves the refinement of vanadium oxide for use “as an electrolyte for mass storage batteries”, as well as in products like aluminum and titanium vanadium master alloys. The company conducted three sets of independent tests on the process, with averages demonstrating no impurity above ten parts per million.

American Vanadium’s Gibellini project in Nevada is the U.S.’s only development-stage vanadium project and the company is aiming to tap into mass energy storage markets worldwide.

Developer Santacruz Silver Mining experienced a 34¢ boost following an update on exploration and construction activities at its Rosario silver-gold project in San Luis Potosi, Mexico. The company closed the week at $2.39 after announcing that mill construction at the site was proceeding on schedule and budget towards commissioning by year end. The mill infrastructure was purchased from Goldcorp in early June and is set to operate at an 800-tonnes-per-day peak throughput capacity.

Santacruz is planning an underground operation that would produce 2.2 million oz. silver equivalent annually. The company also released results from a drill program focused on the Rosario I and II veins. Results continued to hit high-grade silver equivalent intersects, including: 1.2 metres averaging 504.5 grams silver equivalent per tonne in hole RS-01; and 2.6 metres grading 721.14 silver equivalent in hole RS-03.

Junior gold explorer Goldquest Mining suffered its first major share setback after soaring over 2000% since releasing preliminary results on its Las Tres Palmas gold-copper project in the Dominican Republic in mid-May. The company dropped 65¢ over the week before closing at $1.34 after releasing results from three additional holes at its Romero target. Though Goldquest continued to cut solid intercepts it was a notable drop in grade that caught the market’s attention.

New results from Romero were highlighted by 142 metres averaging 0.42 gram gold per tonne and 0.74% copper in hole LTP-99; and 123 metres grading 2.5 grams gold and 0.33% copper in hole LTP-100.