Toronto Stock Exchange
The TSX Composite Index scratched out a small gain as it rose 50 points to reach 12,263.71. The upward move came as fears of a double-dip recession subsided, with stronger-than-expected results out of the Canadian manufacturing sector.
That news rippled from metal providers to manufacturers as the Capped Metals & Mining Index was up 15 points to 1,130.83 points on the back of higher prices for copper, aluminum, nickel, tin and zinc.
Brighter news on the manufacturing side, however, wasn’t so good for gold. The metal was down US$48 although its period-ending price of US$1,814.70 was still substantial. The Global Gold Index tracked the price of the metal and was down 11 points to 428.90 points.
MBAC Fertilizer released its first compliant resource estimate along with a preliminary economic assessment (PEA) for its Santana phosphate project in the southeast part of Para state, Brazil. The initial resource outlined inferred resources of 33.5 million tonnes with an average phosphate content of 12.4% – making Santana one of the highest-grade phosphate mines in Brazil. The PEA estimated yearly production of 500,000 tonnes of single superphosphate starting in 2015 and said a future mine would generate a net present value of $423 million at a 10% discount rate. The news sent the company’s shares up 35% to $3.30.
Forsys Metals‘ initial resource estimate, however, didn’t garner such a positive market reaction. The estimate came from its Namibplaas uranium deposit in Namibia and tallied an inferred resource of over 87 million tonnes grading 0.013% U3O8 . The company said that the study confirmed Namibplaas hosts mineralization similar to its flagship Valencia project. Forsys shares fell 42% to 50¢ for the period.
The discovery of a high-grade extension at Rockgate Capital‘s Falea uranium, silver and copper project in Mali sent the company’s shares 26% higher to $1.60. The highlight intercepts from the extension came in at 1.21% U3O8 and 86 grams silver over 4 metres, and 1.10% U3O8 and 1,020 grams silver over 1 metre. Rockgate said the new zone is at the southwestern edge of the already defined North zone and represents the second high-grade area found there.
Carpathian Gold got the licence it needs to begin construction at its Riacho dos Machados gold project in Brazil, and the company’s shares shot up 20% to 73¢ for the period. Carpathian is targeting production by early 2013 at a mine that will turn out 94,000 oz. gold per year for eight years.
White Tiger Gold announced it attained shareholder approval to combine its business with Century Mining and have its shares promptly sold off. White Tiger shares were off 35% to 85¢ while Century Mining shares were off 8% for the period, finishing at 22¢.
TSX most active issues
VOLUMEWEEK
(000s)HIGHLOWCLOSECHANGE
Eastern PlatinELR517450.800.630.74+0.02
Avion GoldAVR378122.572.252.54+0.08
Silver WheatonSLW2947839.6736.8639.50-0.20
Silvercorp MtlSVM283428.305.816.81-1.58
Kinross GoldK2416217.7316.2116.99-0.88
Yamana GoldYRI2213016.8715.1915.78-1.12
Barrick GoldABX2045354.4251.0552.52-1.87
Lundin MngLUN202205.054.655.02+0.09
Uranium OneUUU171042.532.192.52+0.16
GoldcorpG1689354.3148.7650.29-4.59
TSX greatest percentage change
VOLUMEWEEK
(000s)HIGHLOWCLOSECHANGE
PlatminPPN15230.560.380.56+40.0
MBAC FertilizrMBC8923.302.313.30+34.6
Delrand ResDRN1620.260.250.26+30.0
Dalradian ResDNA12042.101.602.07+27.7
Rockgate CapRGT15611.601.211.60+25.9
Tiger ResTGS500.500.500.50+21.9
Polo ResPOL250.150.100.12+20.0
Carpathian GldCPN68540.740.600.73+19.6
Starcore Int VSAM21290.190.150.19+18.7
Oromin ExplOLE11391.240.991.20+17.6
Forsys MetalsFSY23080.850.500.50-42.5
White Tigr GldWTG1301.300.850.85-34.6
China Gold IntCGG35104.873.403.45-30.1
First UraniumFIU21030.400.290.29-23.6
Intrepid MnrlIAU13191.401.151.16-21.6
Aura MnlsORA26661.971.531.53-21.5
Talon MetalsTLO3260.850.680.71-21.1
Silvercorp MtlSVM283428.305.816.81-18.8
Redzone ResREZ1830.330.260.26-18.7
Coro MiningCOP7280.300.240.24-17.2
TSX greatest value change
WEEK
VOLUMECLOSECHANGE
Imperial MetalIII15295523.75+1.64
Tahoe ResTHO128710419.32+1.05
Pretium ResPVG127289213.00+1.05
MBAC FertilizrMBC8915283.30+0.85
Major DrillingMDI126207012.15+0.68
Revett MnlsRVM1843204.87+0.67
Midas GoldMAX4070594.40+0.65
Horizns G BearHGD39092137.53+0.62
Vista GoldVGZ11473714.20+0.52
Dalradian ResDNA12043772.07+0.45
Walter EnergyWLT3678880.50-7.76
Central Gold-TGTU_U2349766.77-5.23
GoldcorpG1689258350.29-4.59
Silver Std ResSSO225724524.90-4.49
Seabridge GoldSEA15472725.61-3.74
Agnico-EagleAEM517829866.98-3.74
Potash Cp SaskPOT1316989854.47-2.65
Royal GoldRGL26412978.68-2.41
Coeur d AleneCDM16087026.79-2.24
First MajesticFR1376190120.45-2.15
TSX Venture Exchange
The S&P TSX Venture Composite Index dropped as debt fears overshadowed the economy. The index climbed 26 points in two days and fell 48 over three to end down 22.25 points, at 1,762.85 points. Volume edged up for another week, averaging 81.5 million shares traded daily.
There were no breakaway value gains in the week, but Rio Alto Mining topped the list with a 40¢ climb to $2.90. The company was also one of the most active, with 15 million shares traded as it released the first full-quarter production numbers from its recently commissioned La Arena gold-silver mine in Peru. Rio Alto conducted its first gold pour on May 9. Between June 1 and August 31 the company produced 9,385 oz. gold from 1.1 million tonnes of ore while still ramping up production.
Grayd Resource gained 28¢ including a 25¢ bump on the last day of trading in the period on no apparent news to end at $1.95. Big news came the following Monday when Agnico-Eagle announced it would be buying the company for $275 million, or $2.80 per share. Agnico will in return get the La India project in Mexico that hosts 760,000 measured and indicated oz. gold at 0.88 gram gold per tonne and 506,000 inferred oz. at 0.8 gram gold, as well as the Tarachi gold porphyry prospect 10 km north.
IBC Advanced Alloys had a busy, but not necessarily productive, week after announcing a short-form prospectus offering. The company announced plans to raise up to $8 million in a best-effort offering at the start of the period, only to see its stock price drop 5¢ to 17¢ on 28.5 million shares traded. The following Monday IBC announced it had withdrawn the planned prospectus, deciding that financing at current prices was bad news for itself and its shareholders.
Prosperity Goldfields took a hit after releasing drill results from its Kiyuk gold project in Nunavut, with shares falling 47¢ on the day results were released and 58¢ in the period to end at 69¢ with 1.7 million shares traded. The only result from the Rusty zone hit 158 metres grading 1.7 grams gold, including a 30-metre interval grading 4.9 grams gold. The company was unable to drill three planned holes on the zone because of a late start due to permitting and an early end due to caribou migrations.
Bellhaven Copper & Gold shot up 14¢ to 64¢ on 1.3 million shares the day it released a maiden resource for its La Mina project in Colombia. It ended the period up 10¢ at 57¢. The project is estimated to contain 40.56 million tonnes grading 0.77 gram gold and 0.31% copper for 1 million oz. gold and 279 million lbs. copper. The resource is taken from the La Cantera prospect, one of seven defined porphyry gold-copper targets in a 1.5-km-by-500-metre block on the property.
TSX-V most active issues
VOLUMEWEEK
(000s)HIGHLOWCLOSECHANGE
IBC Adv AlloysIB284830.240.160.17-0.05
Rio Alto MngRIO149803.162.542.90+0.40
Canaco ResCAN110463.683.103.10-0.05
Great WesternGWG100510.930.700.82+0.11
Brookemnt CptBKT76570.180.160.170.00
Robex ResRBX67560.290.220.29+0.08
New Shoshoni VNSV64300.030.010.020.00
Paragon MinlsPGR55410.170.070.12+0.04
Victoria GoldVIT49740.540.470.54-0.01
Sandstorm ResSSL49231.441.281.33-0.10
TSX-V greatest percentage change
VOLUMEWEEK
(000s)HIGHLOWCLOSECHANGE
Strait GoldSRD7800.080.050.07+75.0
GTO ResGTR130.200.120.19+72.7
Sierra Madre DSMG3910.250.180.24+60.0
Paragon MinlsPGR55410.170.070.12+50.0
Soho ResSOH7330.090.060.09+50.0
Calibre MngCXB3420.140.100.14+40.0
Silver PursuitSPF220.140.140.14+40.0
Peat ResPET2020.140.100.14+40.0
Robex ResRBX67560.290.220.29+38.1
Terrax MinlsTXR14880.420.280.40+37.9
Dentonia ResDTA8270.020.010.01-50.0
Prosperity GdfPPG16521.400.660.69-45.6
Midasco CapMGC570.080.060.06-40.0
Galahad MtlsGAX26290.170.080.09-40.0
Escape GoldEGT4520.190.150.15-37.5
New Pac MetalsNUX20262.001.271.32-33.6
Odin MiningODN110.170.120.12-33.3
Nunavik NickelKZZ350.300.170.22-33.3
Emgold MngEMR18410.120.080.09-30.7
Bear Lake GoldBLG8860.170.120.14-30.0
TSX-V greatest value change
WEEK
VOLUMECLOSECHANGE
Rio Alto MngRIO149796322.90+0.40
D Arianne ResDAN30534262.25+0.30
Lumina CopperLCC1858027.00+0.29
Grayd ResGYD12644251.95+0.28
Abitibi RoyaltRZZ219952.60+0.20
Brazil ResBRI558461.31+0.20
West KirklandWKM1723951.20+0.18
Karmin ExplKAR1751250.64+0.17
Amarillo GoldAGC1182771.65+0.15
Midway GoldMDW3433262.85+0.15
Atac ResATC15553536.14-1.31
Rainy River RsRR11656809.90-1.22
Chesapeake GldCKG7398315.25-0.71
New Pac MetalsNUX20256381.32-0.67
Strategic MetlSMD18740201.67-0.59
Prosperity GdfPPG16521570.69-0.58
Loncor ResLN1281002.00-0.42
Kaminak GoldKAM9738444.01-0.37
Orbite Expl AORTA48347601.97-0.36
Maudore MinlsMAO865504.55-0.25
U.S. markets
U.S. equities posted five straight days of gains during the trading week, buoyed by news that the European Central Bank, in coordination with other major central banks, plans to make it easier for institutions in Europe to borrow dollars. The Dow Jones Industrial Average rose 516.96 points, or 4.7%, to close at 11,509.09, while the S&P 500 Index jumped 61.78 points, or 5.4%, to finish at 1,216.01, its best week since early July.
The Philadelphia Gold and Silver Index fell 5.65 points, or 2.53%, to close at 217.56.
Kansas City-based Compass Minerals gained US$3.83 per share to close at US$75.05 per share following news that two of its subsidiaries, Great Salt Lake Minerals and Big Quill Resources, will increase the price of all sulfate of potash specialty products by US$30 per short ton on orders shipped on or after Oct. 1, or as contracts allow. The increase will apply to standard and granulated products, the company reported. Rising prices for phosphate and potash also helped lift Agrium, Intrepid Potash and Mosaic.
Lake Victoria Mining surged 54.5% to 17¢ per share on encouraging assay results from underground sampling of artisanal shafts at its Uyowa gold project in northwestern Tanzania. Highlights included 89.60 grams gold per tonne over 0.2 metre, 68.30 grams gold over 0.3 metre, 66.70 grams gold over 1 metre and 57.10 grams gold over 0.3 metre. Previous exploration in 2003 by Ashanti identified four narrow zones of gold mineralization with an east-west strike length of 300 metres across a surface width of 60 metres.
Vista Gold shot up 15.4% to close at US$4.27 per share on no news. On Sept. 6, the junior unveiled an updated resource estimate for the Batman deposit at its Mt. Todd gold project in Australia. Batman’s total resource estimate is now 5.98 million oz. measured and indicated, and 2.61 million oz. inferred.
On the negative side of the ledger, Silvercorp Metals fell 16.7% during the week to US$7.02 per share in the wake of allegations from short sellers accusing the silver producer of a “potential $1.3-billion accounting fraud.” Silvercorp denies the allegations, and on Sept. 15 bought 3.92 million of its common shares for $31.29 million.
U.S. most active issues
VOLUMEWEEK
(000s)HIGHLOWCLOSECHANGE
Alcoa*AA11973012.0911.2111.97+0.39
Freeport McMo*FCX7611343.0940.2441.59-0.40
Kinross Gold*KGC4533417.8516.4017.43-0.52
Barrick Gold*ABX4010154.7251.8053.58-0.97
Hecla Mining*HL381677.927.057.22-0.55
Goldcorp*GG3783654.6249.3751.49-3.75
Newmont Mng*NEM3761565.7862.2365.72+0.46
Potash C Sask*POT3300058.2855.2256.08-1.38
Alpha Nat Res*ANR3230430.9628.6229.77-1.04
Silver Wheatn*SLW3042239.9037.2939.54-0.28
U.S. greatest percentage change
VOLUMEWEEK
(000s)HIGHLOWCLOSECHANGE
Lake Vict Mng*LVCA1280.180.100.17+54.5
Oromin Expl*OLEPF1601.241.011.23+21.7
Vista Gold*VGZ152184.593.774.27+15.4
Western Coppr*WRN2043.332.823.32+14.8
Petaquilla Mn*PTQMF7890.960.760.90+13.9
Paramount Gld*PZG127323.232.262.71+13.8
Ur-Energy*URG6691.251.051.23+11.8
Revett Mnls*RVM3964.704.114.69+10.6
Primero Mng*PPP3363.373.013.37+9.7
US Energy*USEG7552.802.372.70+8.4
Gold Am Mng*SILA15110.190.090.10-41.1
Silvercorp Mt*SVM158858.265.867.02-16.7
Tombstone Exp*TMBXF300.050.050.05-16.6
Douglas Lk Ml*DLKM10910.380.250.28-15.1
Silver Std Re*SSRI1652828.6424.8025.57-13.5
Radius Gold*RDUFF1110.730.640.65-12.1
PolyMet Mng*PLM11681.701.481.48-11.9
Golden Star*GSS201542.632.202.26-11.3
Patriot Coal*PCX560214.5812.7112.86-11.2
NovaGold Res*NG197449.197.828.13-11.2
U.S. greatest value change
WEEK
VOLUMECLOSECHANGE
Compass Mnls*CMP54774175.05+3.83
BHP Billi-BBL*BBL771976863.59+1.73
BHP Billi-BHP*BHP1574477078.86+1.69
Agrium*AGU178899287.19+1.43
Cliffs Nat Rs*CLF1261999077.94+1.31
OM Group*OMG98124030.04+1.26
Intrepid Pots*IPI200756434.14+1.04
Mosaic*MOS2616114870.99+1.02
MDU Res*MDU240487420.85+0.93
Keegan Res*KGN1937519.35+0.60
Walter Energy*WLT240297682.19-6.03
Soc Quim&M Ch*SQM685639254.52-4.07
Silver Std Re*SSRI1652786425.57-4.02
Goldcorp*GG3783624251.49-3.75
Randgold Res*GOLD4764996108.84-2.87
Seabridge Gld*SA198508526.73-2.74
Agnico-Eagle*AEM960297668.46-2.55
Coeur d Alene*CDE981840227.34-1.76
Patriot Coal*PCX560175212.86-1.63
Buenaventura*BVN494462145.04-1.49
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