TSX moves higher, Sept. 16-20: Kirkland Lake, Franco-Nevada, Endeavour Mining, Barrick

The S&P/TSX Composite Index advanced 1.3% to close at 16,899.69. Spot gold finished the trading week at US$1516.70 per oz., up US$28.80 per ounce. The S&P/TSX Global Gold Index rose 6.6% to end at 251.07, while the S&P/TSX Global Base Metals Index fell 1.9% to 102.79, and the S&P/TSX Global Mining Index advanced 1.2% to 78.07.

Leading the week in value gain was Kirkland Lake Gold, which saw shares lift $7.23, or 12.9%, to $63.52 apiece. The company reported underground drill results from its Macassa gold mine in Kirkland Lake, Ont., on Sept. 16. The four underground drill rigs focused on three target areas: the South Mine Complex (SMC) East, SMC West and the Amalgamated Break.

At SMC East, the company intersected high-grade mineralization 200 metres northeast of the current resource area, including 111.8 grams gold per tonne over 2 metres (true width) at 249 metres’ depth; 53 grams gold per tonne over 1 metre (true width) at 275 metres’ depth and 49.2 grams gold per tonne over 2 metres of core length at a 382-metre depth.

Franco-Nevada took second place in value gain, rising $6.45, or 5.4%, to $125.87 per share. The company did not put out any news in the period, but announced succession plans and added to its board on Sept. 9. Changes include the promotion of Paul Brink to the role of president and chief operating officer and the addition of Jennifer Maki as a new director. Pierre Lassonde also announced his intention to step down from both his chair and director roles on the board in 2020.

Endeavour Mining gained 13% to end the period at $27.66 per share. Earlier in September the company increased its indicated resource for the Fetekro greenfield exploration property in Côte d’Ivoire by 141% to 1.2 million oz. gold in 14.6 million tonnes grading 2.54 grams gold per tonne. President and CEO Sébastien de Montessus said Fetekro’s resource is now similar in size and grade to that of its open-pit Agbaou mine, 200 km north of the port city of Abidjan, when the mine started production in 2014.

Endeavour began exploration on the Fetekro property, 500 km from Abidjan, in March 2017. Since then, it has drilled 35,000 metres in and around the Lafigué deposit at Fetekro, which led to a 700,000 oz. increase in indicated resources while raising the average grade 13%. At least 30,000 metres of additional drilling is scheduled to begin in the fourth quarter. A resource update is expected in the second quarter of 2020.

Barrick Gold rose 7% to $24.47 per share. On Sept. 17, the company announced a discovery hole 2 km from its Fourmile project in Nevada. Barrick president and CEO Mark Bristow said at the Denver Gold Forum that diligent exploration and detailed geological modelling led to effective targeting at Fourmile. The discovery hole increases the strike length of the mineralized Goldrush–Fourmile trend to more than 6 km. Mineralization is open in all directions.