TSX nears six-year high before Easter, April 14-17

The Toronto stock market had a strong run heading into the Easter holiday, with the S&P/TSX Composite Index gaining 24 points to 14,500.39, nearing a six-year high on the back of positive Chinese and U.S. economic data.

The S&P/TSX Capped Diversified Metals & Mining Index advanced nearly 23 points to 837.72. But gold miners lost some lustre during the holiday shortened week, as the S&P/TSX Global Gold Index slumped 4 points to 180.15 and the spot price for gold plunged US$25.50 per oz. to US$1,292.90.

A recent Federal Reserve survey shows that the U.S. economy has improved in the past two months. U.S. jobless claims have also sunk to an almost seven-year low, while reports reveal better-than-expected economic growth in China during the last quarter.

Marathon Gold was the week’s top percentage gainer, soaring 83% to 42¢. The Toronto-based explorer published the final drill holes from its winter 2014 program at its Valentine Lake gold property in central Newfoundland. Most of the drilling was finished on the property’s new Sprite zone, which returned several wide, high-grade, near-surface gold hits, including 2.80 grams gold per tonne over 18.4 metres, and 5.36 grams gold over 6 metres. Both widths are true thickness.

The Sprite zone has a strike length of over 500 metres and is open in all directions. It will be the focus of the company’s upcoming mid-year drill program and could become the third open-pit resource on the property, after Valentine Lake’s Leprechaun and Victory gold deposits.

Revolution Resources had a good week, rising nearly 29% to 5¢. The firm reported that it signed an option agreement with Seabridge Gold to earn 100% of the Red Mountain gold project near Stewart, B.C. Under the agreement, Revolution will provide Seabridge 29.7 million shares and $2 million cash in staged payments. It will also invest $7.5 million in expenditures at Red Mountain over three years, but could extend the deadline by a year by paying $250,000. When Red Mountain reaches commercial production, Seabridge will collect another $1.5 million in cash and retain a gold stream on the property. Seabridge could also opt for $4 million in cash and drop the gold stream.

Revolution also intends to complete a 6-for-1 share consolidation and rename ­itself IDM Mining. It has lined up a concurrent $5-million private placement with Haywood Securities.

Vancouver-based miner Imperial Metals topped the value-added chart, gaining $1.02 to end at $14.62. On April 5 the company announced it had restarted the mill at its Huckleberry copper mine in B.C. The mill shut down on Feb. 26, after a semi-autogenous grinding mill failure from a broken tooth in the bull gear.

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