TSX Venture finishes in the red, May 12-16

The S&P/TSX Venture Composite Index had a tough run during the week, losing 14.55 points before closing at a four-month low of 976.55. Markets pulled back after the U.S. Federal Reserve revealed that U.S. industrial production had unexpectedly dropped by 0.6% in April after jumping 0.9% in March, while the European Union’s statistics office reported that the eurozone saw output grow by only 0.2% in the first quarter.

Gold futures started strong, as June contracts hit a mid-week high of US$1,309.20 per oz., before losing momentum and closing up US$5.80 at US$1,293.40 per oz. July contracts for copper jumped US5.7¢ before closing at US$3.145 per lb.

Peru-focused Bear Creek Mining led the value-added category during the week, as it gained 45¢ on 1.4 million shares traded, before closing at $1.95 per share. On May 13 the company announced a positive decision by the Lima First Constitutional Court that resolved conflict over ownership and mineral rights at its Santa Ana silver–lead–zinc property, 140 km south of the city of Puno. The decision follows a three-year constitutional appeal process after Peru’s previous government rescinded Bear Creek’s right to operate the project.

Mexico-focused explorer Cayden Resources sat atop the value-lost column during the week after the company dropped 30¢ on 338,000 shares traded, en route to a $1.66-per-share close. On May 14 Cayden announced assays from nine holes at the Pena de Oro target on its El Barqueno gold project in Jalisco State, Mexico.

Cayden reports that drilling is limited by existing permits to targeting only one of three identified mineralized structures. Drilling highlights include: 26 metres of 2.35 grams gold from 55 metres depth in hole 50; 30 metres of 1.61 grams gold from 9 metres depth in hole 49; and 38 metres of 1.47 grams gold and 0.67% copper from 77 metres depth in hole 52.

Red Pine Exploration led the volume-traded category after nearly 15 million shares changed hands, closing down 1.5¢ at 3¢ per share. On May 14 Red Pine released exploration results from a recent drill program at its Cayenne volcanogenic massive sulphide (VMS) project, 110 km southwest of Timmins, Ont.

Drilling identified lateral and depth extensions of the Jefferson VMS deposit, where Red Pine reports structural evidence indicates “larger polymetallic massive sulphide bodies.” Drilling highlights include: 35 metres grading 0.66% copper and 0.27% zinc from surface in hole 14-7; and 33 metres of 5.88 grams silver, 0.16% copper, 1.18% lead and 2.29% zinc from 68 metres depth in hole 14-5.

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