The S&P/TSX Venture Composite Index edged up 3.61 points, or 0.5%, to a 769.97-point close. Spot gold prices declined for the second week in a row, falling US$14.72, or 1.1%, to US$1,322.73 per oz., as expectations grow for the U.S. Federal Reserve to hike interest rates later this year. Comex prices remained steady at US$2.23 per lb. copper.
Shares of K92 Mining rose 66¢, or 152%, to $1.93, after closing a $12.5-million private placement to help restart underground mining at its Kainantu gold project in Papua New Guinea. The former Barrick Gold operation was shuttered in 2009 and sold to K92 in March 2015 for an initial US$2 million, and a potential US$60-million payment. In the financing K92 issued 12.5 million units at $1 per unit, consisting of a share and one-half warrant. Each whole warrant is exercisable within a year at $1.50 per share, which could accelerate if the company’s shares close at $2 or greater for 10 trading days. The company aims to begin production soon at the project’s Irumafimpa deposit, and is working to boost resources at the adjacent Kora and Eutompi deposits. The epithermal systems have a combined indicated resource of 560,000 tonnes of 12.6 grams gold per tonne for 230,000 oz. gold. Inferred resources add 4.9 million tonnes of 7.5 grams gold for 1.2 million oz. gold. Both calculations assume a 5 gram gold cut-off.
Makena Resources saw 20.9 million shares traded before closing down 1¢ to 3¢ per share, after announcing it would drill up to five holes in August at its Patterson uranium prospect in Saskatchewan’s Athabasca basin. The 30 sq. km property borders projects such as Fission Uranium’s Patterson Lake South, Purepoint Uranium Group and Cameco’s Smart Lake, and NexGen Energy’s Rook 1. In June, Makena picked up 41 sq. km of ground prospective for diamonds in the northwestern part of the basin, near De Beers Canada’s diamond option from CanAlaska Uranium. The partners are awaiting kimberlite indicator mineral results from over 100 glacial samples at surface.
Shares of Cava Resources rose 37¢ to 60¢ per share. The company completed a $150,000 private placement on July 25, comprised of 750,000 units consisting of one share and one-half warrant, at 20¢ per unit. Each whole warrant is exercisable within 24 months at 40¢ per share. Cava plans to use the money for its landholdings in Quebec’s Casa Berardi area with joint-venture partner Explorers Alliance, a private company based in Toronto.
Junior explorer Unigold is scheduled to begin an 8,000-metre drill program at its Candelones Extension gold-copper deposit in the Dominican Republic. The volcanogenic massive sulphide deposit hosts an inferred resource of 5.3 million tonnes of 5.27 grams gold and 0.4% copper for 894,097 oz. gold and 41.2 million lb. copper, using a 3.5 gram gold cut-off. The company rose 22¢ to 66¢ per share.