TSX falls, Oct. 3-7

Canada’s benchmark index fell ahead of the Thanksgiving long weekend, dropping 1.08% to 14,566.26, despite positive jobs data. The S&P/TSX Global Mining Index slumped 5.5% to 61.45, while the S&P/TSX Global Gold Index plunged 13% to 207.20. Spot gold dropped 4.4%, or US$58.30, to US$1,257.60. November West Texas Intermediate crude gained 3.3% to US$49.81 per oz. The Canadian economy created 67,200 jobs in September, beating analyst expectations. The jobless rate remained at 7% as more people entered the workforce. Of the new jobs, 44,100 were part-time, while 50,100 were self-employed positions.

Coro Mining rose 15% to 15¢ per share on promising results from its Marimaca copper project in Chile. It announced the results of seven reverse circulation (RC) holes from the 39-hole, 8,500-metre program completed at the project, where it is earning a 75% interest. One hole returned 58 metres of 0.80% copper, including 18 metres of 0.77% copper. It also reported the results of the remaining four diamond drill holes from the six-hole program, designed to provide metallurgical samples and geotechnical information to support the RC drilling and to test deeper mineralization. Results from the remaining 24 RC holes will be out shortly.

Karnalyte Resources shares climbed 15% to $1.18 following an update on the optimization program at its potash mine at Wynyard, Sask., aimed at improving the economics for the first phase of the planned 625,000 tonnes per year operation.

The company retained Ercosplan, an specialist in potash solution mining, to oversee the program. The second stage of optimization started in September and should run until the end of October. Test results to date indicate the company can “continuously extract potash brine at commercial scale production rates.” A final report should be out in December. Karnalyte also terminated the framework agreement it had with Gujarat State Fertilizers and Chemicals Ltd., where the Indian fertilizer firm in March agreed to finance construction of the first phase of production.

NovaGold Resources shares plunged 26% to $5.44, after reporting the financial results for the third quarter ending Aug. 31. Net loss increased from US$6.3 million, or 2¢ per share, in the third quarter of 2015 to US$7.4 million, or 2¢ per share this year, due to a US$1.1 million foreign exchange gain, in the prior year. Cash and term deposits fell US$3.3 million to US$108.5 million, as the company continued to fund its 50% share of the Donlin Gold project in Alaska and the Galore Creek project in B.C. National Bank Financial estimates that is more than enough to complete Donlin Gold’s permitting. NovaGold expects to receive a Record of Decision for that project in the second half of 2017. The U.S. Army Corps of Engineers is currently reviewing the public comments for the draft environmental impact statement (EIS), in preparation for completing the final EIS.