TSX Venture loses ground, Aug. 22-26

The S&P/TSX Venture Composite Index dropped 3.3%, or 27.58 points, en route to an 805.53-point weekly close. Precious metals dropped after comments by the U.S. Federal Reserve hinting at an interest rate hike later this year, while copper hit a two-month low on oversupply concerns.

December contracts for gold lost 1.4%, or US$18.90, before finishing at US$1,321.50 per oz. gold. October contracts for West Texas Intermediate crude oil dropped 1.8%, or US88¢, en route to a US$47.64-per-barrel close, while December contracts for copper lost 4.2%, before finishing at US$2.08 per lb. copper.

Orezone Gold led the value-lost category after reporting that a resource update could lower in-situ gold ounces at its flagship Bomboré project in Burkina Faso, West Africa. The company dropped 62¢ on 11.2 million shares traded, and finished at 60¢ per share.

On Aug. 22, the company said that “preliminary results” show a 30% decline in global reserves and resources. Bomboré’s 2013 resource estimate contained 140 million tonnes grading 1.01 grams gold per tonne for 4.6 million oz. across all ore types.

Orezone said the decline could owe to a change in engineering companies and modelling techniques. The resource was calculated by SRK Consulting, with the technical work spearheaded by Roscoe Postle Associates.

The company received its mining permit on Aug. 12, and aimed to start construction during the second quarter of 2017.

Rusoro Mining topped the volume-traded after announcing an US$968-million arbitration award by the World Bank’s International Centre for Settlement of Investment Disputes against the government of Venezuela. The company saw 26.5 million shares traded before closing up 103% at 32¢ per share.

Rusoro filed its request for arbitration in July under the Canada-Venezuela bilateral investment treaty, and claims that Venezuela breached its obligations “by unlawfully expropriating [investments] without paying compensation, and by imposing certain restrictions on the export of gold.”

The company has two mines in production and 10 exploration projects in Venezuela.

Novo Resources topped the value-added category after announcing a deal to expand its land position around its Beatons Creek paleoplacer gold project in Western Australia. The company gained 28¢ on 934,000 shares traded, en route to a $1.22-per-share weekly close.

On Aug. 25 Novo reported a deal to buy  three previously optioned properties from Australia-based Talga Resources, which will accept 765,115 shares in lieu of cash payments. Novo says the Talga Talga, Warrawoona and Mosquito Creek projects could host resources that may “complement” hypothetical production at Beatons Creek.


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