TSX posts slight increase, Jan. 9-13

The gold price climbed US$24.70 per oz., or 2.1%, to finish at US$1,196.90 per oz., driven higher by uncertainty about what the upcoming presidency Donald Trump will mean for the global economy and markets. The S&P/TSX Global Gold Index inched up 0.4% to 205.47, while the S&P/TSX Global Mining Index rose 4.9% to 68.56. The S&P/TSX Composite Index increased by a marginal 0.008% to 15,497.28, while West Texas Intermediate crude was down 3% at US$52 per barrel.

Champion Iron surged 61% to 75¢ per share, prompting the company to issue a press release stating it was unaware of any undisclosed information that would account for the increase. The junior has worked on developing iron ore deposits in the Labrador Trough for more than a decade. The Quebec Government has granted $20 million for the feasibility study of a new rail linking the company’s Fire Lake North Deposit-Bloom Lake area to the Port of Sept-Îles.

Two uranium juniors, Forsys Metals and Mega Uranium, posted percentage increases in share price. Forsys Metals, which has uranium properties in Namibia, climbed 60% to US20¢ per share, while Mega Uranium, with uranium properties in Australia, rose 50% to 24¢. Mega was also the third most traded stock. The UxC weekly spot price for uranium oxide climbed to US$22.56 per lb., for a 2.5% weekly gain.

U3O8 was the most traded stock, up 1¢ to 4¢ per share. The company announced discovering a second type of uranium-vanadium mineralization that occurs in addition to the typical mineralized gravel at its La Rosada target, an area within its larger Laguna Salada project in Argentina. CEO Richard Spencer noted in a press release that the company’s exploration team had found high-grade uranium-vanadium in friable volcanic rocks — and that trenching over the previous couple of months had shown that the uranium-vanadium in the volcanic rock “constitutes a target in its own right,” not only adding to the potential of the La Rosada target, but also, conceivably, helping the company lower estimated production costs.

Shares of Denison Mines were up 30% to $1.05. The company reached an agreement with its partners at the Wheeler River joint venture that sees Denison’s stake rise to 66% by the end of 2018. Denison owns 60% and partners Cameco Corp. and JCU (Canada) Exploration own 30% and 10%. Under the agreement, the companies will give Cameco a one-time election to fund half of its ordinary share of joint-venture expenses in 2017 and 2018. The shortfall in Cameco’s contribution will be funded by Denison, in exchange for part of Cameco’s interest in the joint venture. Denison’s share of joint-venture expenses will be 75% in 2017 and 2018, and Cameco and JCU’s share of joint-venture expenses will be 15% and 10%. The companies have also approved a $12.5-million work program and budget for the joint venture this year.


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