TSX Venture slides, June 20-24

Economic uncertainty following the surprise vote in the United Kingdom to leave the European Union edged the S&P/TSX Venture Composite Index down 4.57 points, or 0.6%, to a 710.79-point close over the trading period.

Chesapeake Gold topped the value-added category, rising $1.54 to $5.10 on rising gold prices. In March, the company updated the prefeasibility study for its Metates gold-silver project in Mexico’s Durango State, which envisaged a 30,000 tonnes-per-day open-pit operation scaling up to 90,000 tonnes-per day after four years of mining, eventually becoming a 27-year mining operation, followed by 10 years of processing low-grade stockpiles. The study calculates an after-tax net present value of US$737.4 million at 5% discount and a 7.7% after-tax internal rate of return.

Hinterland Metals saw 13.3 million shares trade hands, gaining 3¢ to 6¢ on news it acquired claims 15 km southeast of Nemaska Lithium’s Whabouchi hard rock lithium project in Quebec’s James Bay region. The junior stated that previous explorers never considered the potential for lithium-bearing pegmatites on the 21 sq. km property.

Shares of CanAlaska Uranium jumped 19¢ to a 94¢ after the company announced that its new joint-venture partner De Beers has collected over 100 samples for kimberlite indicator mineral processing at their West Athabasca project in Saskatchewan.  The samples will be processed in De Beers’ laboratories to establish evidence for kimberlite intrusives associated with geophysical anomalies that CanAlaska identified prior to staking the 810 sq. km land package earlier this year. The partners plan to execute high resolution geophysics on targets before drilling.

Gold Reserve’s shares fell 38¢ to a $5.42 after the company extended to July 15 its memorandum of understanding with the Venezuelan government. The company stated the delay is due to “recent positive events in Venezuela” such as the formation of a new Ministry of Ecological Mining Development and appointment of a new minister. In September 2014, Gold Reserve negotiated a US$740-million settlement with the government for losses it incurred after the government rescinded permits and licenses for the company’s Brisas gold-copper project in southeastern Venezuela as part of a nationalization drive.

Shares of NexGen Energy were hit by the Brexit result, dropping 23¢ to a $2.49. Prior to the event, the company announced expansion of high-grade uranium mineralization at its Arrow deposit in Saskatchewan’s Athabasca Basin. Intercepts include 37.5 metres of 17.6% U3O8, 68 metres of 2.09% U3O8 and 32 metres at 1.97% U3O8. NexGen is wrapping up a 7,500 metre drill program and will begin the next phase of exploration at Arrow in late June that will entail more drilling at Arrow and target new areas of mineralization to the northeast and southwest of the deposit.


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