TSX Venture gains ground, Nov. 23-27

The S&P/TSX Venture Composite Index was on the rise, as it gained 1.36 points en route to a 522.01-point weekly close.

Markets drove slightly higher after improved base metal and energy futures, with Statistics Canada reporting that its raw-material price index jumped 0.4% in October. In other macroeconomic news, investors responded positively to word that the European Central Bank would announce “aggressive stimulus” measures, while sales data indicated the U.S. housing market could lose momentum.

Gold took a step back after a relatively strong November, as February contracts for bullion dropped 1.9%, or US$20.20, en route to a US$1,056.20 per oz. weekly close. January contracts for West Texas Intermediate crude oil surged to a mid-week high of US$43.46 per barrel, before losing steam and finishing up 3.3%, or US$1.32, at US$41.71 per barrel. March contracts for copper gained 1.5%, or US3¢, en route to a US$2.05 per lb. close.

Graphite One Resources led the volume-traded category after releasing a corporate update on its plans for the coming year at its Graphite Creek project, 59 km north of Nome, Alaska. The company saw 6.4 million of its shares change hands, before closing down 1¢ at 9¢ per share.

On Nov. 23 Graphite One reported that a $2-million financing would help it release a preliminary economic assessment at Graphite Creek in 2016, while the company also welcomed NovaCopper president and CEO Rick Van Nieuwenhuyse to its advisory board. Graphite One’s plan involves testing its “spherical graphite” for applications in lithium ion batteries.

U.S.-based Gold Reserve topped the value-added column after announcing a development in its legal dispute with the Venezuelan government over the termination of its Las Brisas gold concessions in 2009. The company gained 30¢ on 177,870 shares traded, before finishing at $3.75 per share.

Gold Reserve is trying to enforce a US$740-million arbitration award granted by the World Bank’s International Centre for Settlement of Investment Disputes last year. On Nov. 23 the company announced that the U.S. District Court had ruled in its favour and opted not to grant Venezuela’s request that enforcement of the judgment be stayed pending an annulment application before the Paris Court of Appeal. Gold Reserve’s president Doug Belanger reiterated that the company is open to a settlement in the case.

Zenyatta Ventures lost the most ground after announcing an update on its Albany graphite deposit in northeastern Ontario. The company dropped 13¢ on 545,000 shares, before closing at 75¢ per share.

Zenyatta reported it had received test results from a batch of “purified graphite material” from Albany that graded 99.9% graphitic carbon.