TSX Venture loses more ground, Jan. 18-22

The S&P/TSX Venture Composite Index hit historic lows, as it dropped 1.1%, or 5.29 points, en route to a 483.67-point weekly close. Monetary stimulus measures were on the horizon for many of the world’s major economies, as European Central Bank president Mario Draghi suggested the ECB could ease its policy in March, while investors  speculated that governments would intervene to bolster markets in China and Japan. The Canadian dollar closed up 3%, or US2¢, at US70.8¢.

February contracts for gold bullion gained US$5.70 before closing at US$1,097.20 per oz. Base metal futures were also on the rise, as March contracts for copper jumped nearly 3%, or US5.8¢, en route to a US$2 per lb. close. March contracts for West Texas Intermediate crude oil rose 9.4%, or US$2.77, before finishing at US$32.19 per barrel.

Gold Reserve led the value-lost category after releasing an update on legal proceedings against the Venezuelan government. The company dropped 20¢ before closing at $3.21 per share.

Gold Reserve is seeking to enforce a US$765-million arbitration award from the World Bank’s International Centre for Settlement of Investment Disputes. In 2009 the Venezuelan government seized the company’s half-built Brisas mine in the country, after which it sought $2.1 billion in damages.

On Jan. 21 the company reported it had requested an order from the U.S. District Court in Washington, D.C., to pursue the attachment of assets. Meanwhile, the Venezuela government made arguments in court in the U.K. citing sovereign immunity. Gold Reserve is also pursuing legal action in France, where it waits for an arbitral award annulment hearing date in the Paris Court of Appeal.

Explorer Kennady Diamonds lost ground after releasing diamond recovery results from the Faraday kimberlites at its wholly owned Kennady North project in the Northwest Territories. Shares dropped 15¢ apeice on 40,000 traded, before finishing at $2.85 per share.

On Jan. 25 Kennady reported a Faraday 2 sample grade of 4.48 carats per tonne and Faraday 1 sample grade of 3 carats per tonne. The company said that after “ice-based core drilling,” the Faraday results extend the kimberlite’s strike beyond the 120 metres defined to date. Kennady has defined Faraday 2 over a 480-metre strike, and the Kelvin kimberlite over a more than 640-metre strike.

Equitas Resources saw high trading as investors digested news of a gold acquisition in Brazil. The company saw nearly 4.4 million of its shares change hands, as it gained 1¢ en route to a 7¢-per-share close.

On Jan. 15 Equitas has a preliminary agreement to buy privately owned Alta Floresta Gold in an all-share deal. The acquisition marks a change in direction for the company, which had been looking for nickel in Labrador.