The S&P/TSX Venture Composite Index (INDEXTSI:JX) continued to descend last week, weighed down by factors like widespread inflation, which is eroding investor sentiment.
Thursday (May 12), saw the junior index fall to 661, its lowest point since December 2020. However, by Friday (April13) morning, the TSXV had begun a slow climb higher, similar to other larger indexes. It closed at 696.79.
Although gold is widely considered a hedge against inflation, the yellow metal’s price sank over the second week of May, slipping as low as US$1,801 per ounce.
“The chief catalyst for the recent pull-back in gold was the (US Federal Reserve’s) latest monetary policy announcement as the central bank raised rates by 50bps, the biggest hike in over two decades,” a weekly update from Metals Focus reads. “This in turn reflected persistently high US inflation and elevated forward inflation expectations.” The firm believes gold could see further headwinds from the Fed’s hawkish stance.
The five TSXV-listed mining stocks that saw the biggest rises last week are as follows:
- Aton Resources (TSXV:AAN)
- Scorpio Gold (TSXV:SGN)
- Metals Creek Resources (TSXV:MEK)
- Kingfisher Metals (TSXV:KFR)
- Puma Exploration (TSXV:PUMA)
Here’s a look at those companies and the factors that moved their share prices last week.
1. Aton Resources
Precious metals company Aton Resources is exploring Egypt’s Arabian-Nubian Shield, and describes itself as the only public mining company in the country.
Last Tuesday (May 10), Aton released the latest round of assays from a Phase II diamond drilling program at its Rodruin gold exploration project in the Eastern Desert of Egypt.
Interim CEO Tonno Vahk described a sulfide intersection from hole ROD-071 as “by some distance the best intersection Aton has ever drilled in Egypt,” and said it is encouraging for deeper sulfide potential.
He added, “The mineralisation is hosted in very strongly altered sediments, associated with significant copper and zinc sulphides, and appears to be the fresh unweathered precursor to the high grade mineralisation that we intersected in the discovery hole ROP-003 at Aladdin’s Hill in 2018.”
The results pushed Aton shares 88.54 percent higher by Friday to trade for C$0.48.
2. Scorpio Gold
Nevada-focused Scorpio Gold holds a 100 percent interest in the consolidated Manhattan District in Nevada. The site includes the advanced exploration-stage Goldwedge property.
Late last week, Scorpio reported “significant” intercepts as part of a newly commenced Phase II reverse-circulation drilling program at Goldwedge. According to Scorpio, the planned program will consist of 59 reverse-circulation drill holes over a total of 10,800 meters; drilling is expected to continue for the next six months.
Shares of Scorpio added 78.16 last week, ending the five day period at C$0.08.
3. Metals Creek Resources
Junior explorer Metals Creek Resources has a 50 percent interest in the Ogden gold project located south of Timmins, Ontario. Additionally, it has an agreement with Newmont (TSX:NGT,NYSE:NEM), to earn a 100 percent interest in the past-producing Dona Lake gold project in Ontario’s Pickle Lake Mining District.
Metals Creek has not released any news since April, when it provided drill results from a Phase III drill program at Donna Lake. Its shares climbed 28.82 percent during the second trading week of May, ending at C$0.13.
4. Kingfisher Metals
Diversified exploration company Kingfisher Metals is focused on underexplored, district-scale projects in BC. It has three assets that offer potential exposure to high-grade gold, copper, silver and zinc.
Kingfisher’s last news item came in late April, when the company announced a non-brokered private placement to raise C$3 million in gross proceeds. The offering is expected to close on May 19, 2022.
By last Friday, Kingfisher shares were up 21.98 percent, trading for C$0.19.
5. Puma Exploration
Puma Exploration is advancing its exploration efforts near the Bathurst Mining Camp in New Brunswick, Canada. The explorer is committed to its DEAR strategy (development, exploration, acquisition and royalties) to generate maximum value for shareholders with low share dilution.
Earlier this month, the firm told shareholders it had mobilized a second drill rig at its Williams Brook gold project to accelerate an ongoing 10,000 meter drill program.
Puma saw its shares rise 16.99 percent by Friday to sell for C$0.38.
Data for 5 Top Weekly TSXV Performers articles is retrieved each Friday at 10:30 a.m. EST using TradingView’s stock screener. Only companies with market capitalizations greater than C$10 million prior to the week’s gains are included. Companies within the non-energy minerals and energy minerals are considered.
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Securities Disclosure: I, Georgia Williams, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: Metals Creek Resources and Puma Exploration are clients of the Investing News Network. This article is not paid-for content.