TSX posts marginal gain, Oct. 16-20

The S&P/TSX Composite Index rose 0.32% to finish the trading week at 15,857.22. The S&P/TSX Global Mining Index and the S&P/TSX Global Gold Index moved in the opposite direction, falling 1.24% and 2.14%. The spot gold price dropped 1.8% to finish at US$1,280 per ounce.

Lithium Americas updated the market on its Lithium Nevada project, sending its shares up 36¢ to $2.02. The board has approved a US$10.5-million budget to fund the project through to 2018 and management is examining future strategic partnerships and financing alternatives for development. A prefeasibility study due for completion in June 2018 will examine the economic potential of producing battery-grade lithium hydroxide from lithium-bearing claystone. In addition, the company has 70 drill targets southeast of the project’s Main Zone. Its 2017 exploration program is fully permitted and 65% complete.

Lundin Mining rose 26¢ to $9.97 per share. The company will redeem all of its 7.50% senior-secured notes due in 2020. The early redemption of the $550-million principal outstanding will save the company US$41.3 million a year in interest payments.

Endeavour Mining poured its first gold at its new Houndé mine in Burkina Faso. Nearly three months of feed has been stockpiled and Endeavour says it is getting positive grade reconciliation against the resource model. Once fully ramped up, Endeavour’s 90%-owned Houndé will double the firm’s cash-flow generation. Endeavour expects Houndé to produce an average of 190,000 oz. gold per year at all-in sustaining costs (AISCs) of US$709 per oz. over a 10-year mine life. During each of the first four years, the open-pit mine will produce an average 235,000 oz. gold at AISCs of US$610 per ounce. Shares of Endeavour fell $1.36 to $23.12.

Shares of TMAC Resources fell $2.13 to finish at $7.20 each. The company reported third-quarter sales from its Doris mine in Nunavut of 13,760 oz. gold and says its 2017 guidance remains unchanged at 50,000 to 60,000 oz. gold sold. Management is working on design recoveries at the plant and has found three areas for improvement: the cyclones that feed the flotation cells; a de-watering cone to reduce excess water in the concentrate-treatment plant; and the resin columns where it is working to remedy resin bead issues. The emerging gold producer’s Doris mine poured first gold in the first quarter of 2017 and achieved commercial production in the second quarter. A new cyclone distributor head is expected at the site by mid-November. A shipment of replacement resin should arrive shortly. In the meantime, underground development work at the Doris mine continues with a ramp to Doris Connector, its next mining area, is underway. TNM


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