TSX down, Oct. 25-29 trading week

The S&P/TSX Composite Index fell 179.10 points or 0.84% to finish the October 25-29 trading week at 21,037.10. The Global Mining Index dropped 3.06 points or 3.07% to 96.58 and the Global Base Metals Index fell 3.61 points or 2.15% to 164.18. The Global Gold Index fell 12.1 points or 4.23% to 273.73 and spot gold climbed US$8.50 per oz. or 0.47% to finish the week at US$1,784.30 per ounce.

Shares of MAG Silver jumped $1.51 to $24.65. The company reported third quarter production results and noted that it is now transitioning from construction to commissioning activities at the plant at its Juanicipio mine in Mexico. MAG Silver owns a 56% stake in the mine and Fresnillo 44%. “We have learned so much from processing development material through the Fresnillo plant over the past 14 months, and hence are looking forward to a rapid ramp-up through early 2022,” MAG Silver’s president and CEO George Paspalas, said in an Oct. 27 press release. Until the processing plant is commissioned, mineralized development material from Juancipio will continue to be processed at a targeted rate of 16,000 tonnes per month through Fresnillo’s nearby beneficiation plant, with the silver-rich lead and zinc concentrates treated at market terms under off-take agreements with Met-Mex Penoles, S.A. de C.V. in Torreon, Mexico. Third quarter production of underground development material from Juanicipio reached 57,127 tonnes.  Total production for the quarter based on provisional estimates before offtake agreement adjustments was 667,532 oz. of silver and 1,107 oz. of gold. The associated lead and zinc production totals will be reported in the company’s third quarter filings. Revenue from this production is being used by Juanicipio’s shareholders to offset initial project capital cash requirements.

SilverCrest Metals rose $1.27 to $11.14. The company reported that construction of its Las Chispas project in Sonora, Mexico, is about 54% complete and remains on schedule. The main access road, plant detailed engineering, and concrete work are now complete, SilverCrest reported on October 26  said, and bridge construction is 88% complete, plant construction 49% complete, powerline 47% complete and underground infrastructure ongoing.  Underground development rates continue to progress well, for a total of 15.7 km completed since underground development began in the first quarter of 2019. With more than 80% of the initial capital costs expected to be committed by the end of 2021, SilverCrest said it expects to be well-funded for commissioning and ramp-up in 2022.

A new discovery at Pretium Resources’ Brucejack property in northern British Columbia sent the company’s shares up 98¢ to $14.97. The company reported a new high-grade gold exploration discovery at the Golden Marmot zone, about 3.5 km north of its Valley of the Kings deposit. Eight of the nine holes for which assays have been received intersected gold. A highlight was drillhole SU-786, which intersected 72.5 grams gold per tonne over 53.5 metres starting from a depth of 251 metres, including 6,700 grams gold per tonne and 3,990 grams silver per tonne over 0.5 metres and including 787 grams gold per tonne over 0.5 metres. Drillhole SU-778 returned 46.1 grams gold per tonne over 5.8 metres starting 234 metres downhole, including 208 grams gold over 1 metre. The Golden Marmot zone is 1.75 km east of the Hanging Glacier zone, where the company discovered gold last year.