Venture hits four-week high, Feb. 8-12

The S&P/TSX Venture Composite Index held steady near a four-week high, gaining 0.6%, or 2.99 points, to a 511.14-point close, backed by rising metal prices.

Spot gold had its strongest weekly rise in more than four years, as turmoil in global equities stoked demand for the metal, boosted by doubt on whether the Federal Reserve would raise interest rates. Gold peaked at $1,246.7 per oz. gold — its highest since February last year — before closing up US$64.57, or 5.5%, at US$1,237.97 per oz. gold.

Brent crude oil fell and then rebounded sharply off speculation that the Organization of the Petroleum Exporting Countries would reduce output, before closing at US$33.36 per barrel, down 2.1%, or US70¢. Copper dropped 3.5% to US$2.03 per lb., while the Canadian/U.S. exchange rate held steady at US72¢ to the loonie.

North American project-generator Chesapeake Gold topped the value-added category, rising 34¢ to a $2.39 close, boosted by surging gold prices. The company could release an updated prefeasibility study early this year on its Metates gold-silver deposit in Durango, Mexico. A 2013 study envisaged a 25-year mine life with an average annual production of 659,000 oz. gold, 15.9 million oz. silver and 143.3 million lb. zinc, including a US$4.3-billion capital cost.

Gold producer Metanor Resources saw 14 million shares traded before closing up 1¢ at 6¢ per share, after news that it would restart open-pit operations at its wholly owned Barry project in Quebec’s prolific Val-d’Or gold district. The ore would be processed at Metanor’s operating Bachelor Lake mill, 65 km away.

The company also started a 60,000-metre drilling campaign to test a mineralized zone under its Moroy gold property, 1 km southeast of its Bachelor Lake mine. Previous drilling at the property returned 10.1 grams gold per tonne over 26.2 metres and 18.9 grams gold over 5.6 metres.

Avino Silver & Gold Mines also led the value-added category, rising 28¢ to a $1.51 close on no news. The company last reported in mid-January that production at its silver-gold Avino property in Durango, Mexico was up 116% over 2015, due to equipment and facility upgrades that led to a record 3 million equivalent oz. silver.

Shares of Pacific Booker Minerals regained lost ground, rising 33¢ to a $1.84 close, after news on Feb. 4 that the beleaguered junior was reviewing a B.C. government’s decision to reject permitting of its Morrison copper-gold-molybdenum deposit, 35 km north of Granisle, B.C.

The announcement is the latest step the company has taken since the government shot down Morrison’s development in 2013.