The S&P/TSX Composite Index slid for the third consecutive week, ending March 12-16 down 0.05% or less than 7 points from the previous week at 12,496.96.
Gold and diversified miners performed poorly as the spot price of gold tumbled US$53.40 per oz. to US$1,660.10. The S&P/TSX Global Gold Index finished down 21 points to 337.74, and the S&P/TSX Capped Diversified Metals & Mining Index dropped 23 points to 1,102.21.
Pure Nickel was the week’s biggest percentage gainer, moving up 22.2% to 11¢ on no news. The latest announcement the company made was on March 1, saying its Japanese partner ITOCHU would fund a US$4.9-million exploration program at the joint MAN Alaska project this year.
On news of a $3.5-million private placement, Silver Bear Resources’ shares gained 17.7% to close the week at 73¢. The company intends to complete a non-brokered financing of 4.2 million shares at 80¢ for net proceeds of $3.5 million. Tabac Ventures Ltd. has agreed to acquire all the shares issued in the placement. Silver Bear plans to use the proceeds to fund exploration activities and improve infrastructure at its Mangazeisky silver property in Yakutia, Russia. The financing is expected to close on March 31.
Starcore International Mines moved up 17.1% to 41¢ after reporting results for the second quarter and six months ended Jan. 31, 2012. The company announced quarterly revenue of $15 million and earnings of $3.5 million. Revenue over the six months equalled $35.4 million, and earnings came in at $6.7 million.
Earlier in the week, the company announced production results for the second quarter at its Mexican San Martin gold-silver mine. For the three months, the mine churned out 78,824 tonnes grading 2.14 grams gold and 35 grams silver per tonne for 6,068 gold equivalent oz. The production met the company’s minimum target of producing 2,000 gold equivalent oz. each month.
Vena Resources moved up 16.6% to 35¢ after acquiring historical drill data showing multiple horizons of zinc mineralization up to 5 km east of its existing Azulcocha mill. The data summarized results from a 1974 drill campaign completed by former operators of the Azulcocha zinc mine. Although the report is not National Instrument 43-101 compliant, the company says it has confirmed “the existence of the drill platforms and have found trenches that have surface mineralization up dip from several of the mineralized intersections.”
Fertilizer majors, Agrium and Potash Corp. of Saskatchewan were among the week’s top values gainers as Bloomberg reported on March 16 that U.S. farmers are expected to plant more corn and wheat this year than last year, according to a survey of growers by Allendale Inc. It also noted farmers will plant fewer acres of soybeans than the government estimated in February. Agrium advanced $2.67 per share to $85.22, and PotashCorp added $1.73 per share to close at $45.40.
Agrium has also been named as one of the companies in a consortium looking to acquire the Western Canadian grain handler, Viterra Inc.
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