TSX gains on US Federal Reserve decision, Sept. 19-23

The U.S. Federal Reserve’s decision to hold interest rates steady sent Canada’s benchmark index up 1.7% to 14,697.93 and the gold price up 2.1% to US$1,337.10 per ounce. The S&P/TSX Global Gold Index rose 4.1% to 243.90, while the S&P/TSX Global Mining Index jumped 5.1% to 64.61. West Texas Intermediate crude finished at US$45 per barrel, for a 2.6% weekly gain.

A favourable decision by the Supreme Administrative Court of Finland sent Mawson Resources shares surging 46% to 43¢. The company reported that Finland’s Supreme Court rejected an appeal by the Finnish Nature Conservation Association, which allows Mawson the right to explore the Kairamaat 2 and 3 exploration permits, which cover the junior’s Rajapalot and Palokas prospects. Mawson says the decision cannot be appealed. This is the first time the company has gained full drill access to test the gold mineralized system across the Rajapalot area. Mawson is planning a winter deep diamond-drilling program of 10,000 metres, amongst other programs. The decision allows Mawson to “deep drill up to 123 diamond drill holes in Natura 2000 biodiversity areas amongst other work programs, and is the milestone we have been awaiting since the first permits were applied for in October 2009,” the company’s president and CEO Michael Hudson says.

Positive drill results at TMAC Resources’ Hope Bay gold property in Nunavut released the week before buoyed the company’s share price, which closed $2.01 per share higher at $18.11. The company reported more results from below the diabase dike at its Doris mine. (The current high-grade mine reserves and resources at the Doris North Hinge zone are only defined above the diabase dike and only to a shallow depth of 160 metres.) Drilling since June has provided high-grade gold intercepts over minable widths downdip of the Doris mine reserves, and as a result, more underground development will provide deeper underground access for drilling at Doris North. Highlights from the most recent assays include 43.6 grams gold per tonne over 4.2 metres; 26.7 grams gold over 13.2 metres; 50 grams gold over 5.1 metres and 68.9 grams gold over 4.3 metres.

Goldcorp’s shares jumped $1.36 to $21.91. The company announced Charlie Sartain has joined its board of directors. Sartain, a mining engineer, was previously the CEO of Xstrata’s global copper business. During his nine years as CEO, the business grew to become one of the world’s leading copper producers, with mining operations and projects spanning seven countries.

Shares of Prophecy Development fell 57¢ to $3.78. Prophecy announced a deal on Sept. 22, in which Lorraine Copper Corp. will acquire Prophecy’s 60% interest in the OK (Okeover) copper-molybdenum project near Powell River, British Columbia. Once the transaction closes, Lorraine Copper will own 100% of the asset.