The S&P/TSX Composite Index dropped 1.81% to 15,192.54. The S&P/TSX Global Mining Index fell 6.11% to 61.44, the S&P/TSX Global Gold Index lost 5.41% to finish at 197.95, and spot gold fell 1.03%, or US$13 per oz. to US$1,253.40 per ounce.
Sierra Metals jumped 51¢ to $3.63. The company reported initial assay results from its Santa Rosa de Lima zone at its Cusi mine property in Mexico. Sierra says the drilling has confirmed a high-grade mineralized deposit next to its operations, with highlights of 1,152 grams silver per tonne, 0.26% lead and 0.52% zinc, or 1,243 grams per tonne silver-equivalent over a real width of 2 metres in hole 6; 1,034 grams silver, 1.50% lead and 2% zinc, or 1,126 grams silver-equivalent over 3.2 metres in hole 14; and 690 grams silver, 0.84% lead and 1.09% zinc, or 766 grams silver-equivalent in hole 15. Thirty-six holes were drilled over an area 1,000 metres long by 400 metres deep, with an average intercept grade of 371 grams silver-equivalent and a 4.1-metre average true width. The main mineralized zone is open along strike northwest and southeast. Mineralization at the Santa Rosa de Lima zone is 200 metres below surface in the Sierra Madre Occidental mountain range of Chihuahua state.
Agnico Eagle Mines announced it had signed an Inuit impact and benefit agreement (IIBA) with the Kivalliq Inuit Association for its Whale Tail gold project, 50 km northwest of the company’s Meadowbank mine in Nunavut. Under the IIBA, Agnico will make a $6.5-million payment to KIA, including $3 million towards a community initiative fund. The Whale Tail project will provide KIA with a 1.4% net smelter return royalty on production. The agreement also outlines an investment by Agnico of $3.6 million in annual training programs, with another $1-million investment if 50% Inuit employment is not reached. The Whale Tail deposit is part of Agnico’s Amaruq discovery and will contribute to the company’s growth. The project has been approved for development, and the company expects to receive permits by the second quarter of 2018. As a satellite deposit to the Meadowbank mine, it will use existing infrastructure that includes mining equipment, mill, tailings, camp and airstrip. Open-pit mining at Whale Tail is expected in the third quarter of 2019. Shares of Agnico fell $2.85 to $62 apiece.
Shares of Prophecy Development Corp. rose 13¢ to $3.38. The company reported that the company’s executive chairman, John Lee, had acquired more shares and warrants in the company. Before his purchases, Lee owned 995,253 shares, representing 19.12% of the company’s issued and outstanding shares. After the transactions, he owns and exercises control over 1.06 million shares, representing an interest of 19.63% of the company’s issued and outstanding shares, and 31.05% fully diluted shares, after outstanding options and share-purchase warrants.