The S&P/TSX Venture Composite Index (INDEXTSI:JX) sank to a five day low last Friday (February 18) as tensions between Russia and Ukraine eroded investor risk appetite and dragged on global markets.
Canada’s junior index has faced headwinds since early January due to record inflation and rampant volatility. The uncertainty has aided the gold price, which rose to its highest level — US$1,903 per ounce — since June.
The yellow metal could see further upside if Russia is forced to rely more heavily on its gold reserves.
“The US has threatened Russia with sanctions in case it launches an attack on Ukraine,” Sagar Kalra, senior analyst at Wood Mackenzie, said. “This would further prompt Russia to rely more on gold than US dollars as a component of its international reserves, which would in turn lead to higher demand for Russian gold.”
Oil prices started the five day session marking a nearly seven year high of US$95 per barrel before values pulled back to the US$90 range by week’s end. Against that backdrop, several junior gold miners were able to add to their share value last week; the five TSXV-listed mining stocks that saw the biggest gains are as follows:
- K9 Gold (TSXV:KNC)
- PPX Mining (TSXV:PPX)
- Capitan Mining (TSXV:CAPT)
- Allied Copper (TSXV:CPR)
- Adex Mining (TSXV:ADE)
Here’s a look at those companies and the factors that moved their share prices last week.
1. K9 Gold
Focused on its Stony Lake gold project in Newfoundland, Canada, K9 Gold also owns the Desert Eagle vanadium-uranium project located in the Henry Mountains mining district in Southeast Utah, US.
Last Monday (February 14), the diversified explorer released the results from 2021 drilling at the Stony Lake property. Highlights include multiple wide zones of gold mineralization. “It is extremely encouraging to encounter over 65 meters of gold mineralization throughout JP21-012,” K9 Gold CEO Jeff Poloni noted.
K9’s discovery led to an 86.09 percent uptick in its share price, which ended the week at C$0.33.
2. PPX Mining
Precious metals-focused PPX Mining is developing its Igor gold-silver project in Northern Peru. The company also operates the Mina Callanquitas mine, which is currently in pre-production.
Early in the week, PPX provided shareholders with a performance overview for its 2021 fiscal year. According to the announcement, 13,888 ounces of gold and 43,176 ounces of silver were produced last year from ore mined at Mina Callanquitas, generating C$2.6 million in net profit interest income.
The positive news aided in a 60.28 percent rise in PPX shares, which closed out the week at C$0.04.
3. Capitan Mining
Capitan Mining is presently exploring its flagship Peñoles gold and silver project in Durango, Mexico.
The precious metals exploration firm released results last Friday (February 18) from Phase I drilling at the Jesús María polymetallic silver deposit within the Peñoles property. According to the company, several high-grade intervals were discovered during the program.
“I am particularly excited for the results of hole 21-JMRC-01, which confirm the continuity of high-grade silver mineralization from surface trenching,” Capitan CEO Alberto Orozco said in a press release. “This high-grade zone has only been drill tested to shallow-depths and remains open to expansion down-plunge.”
Capitan shares were up 53.71 percent for the week on Friday, holding at the C$0.33 level.
4. Adex Mining
Adex Mining is developing the Mount Pleasant mine property in New Brunswick, Canada. It houses two distinct deposits: the Fire Tower zone, which hosts a significant molybdenum and tungsten resource, and the North zone, which contains both the world’s largest indium reserve and one of North America’s largest tin resources.
The diversified exploration firm has not released any corporate news since late 2021, when it reported the appointment of Xiao Long Li as interim chief financial officer effective January 1, 2022.
Shares of Adex climbed 50.15 percent over the five day period, ending the session at C$0.15.
5. Allied Copper
Headquartered in Vancouver, Canada, Allied Copper is focused on acquiring and developing potential long-life, scalable copper and gold assets in the Western US.
Since the beginning of February, the explorer has made two acquisitions, the most recent being an option agreement for the Stateline property on the Colorado-Utah border. Stateline consists of 22 unpatented mining claims totaling 148 hectares and is in close proximity to the operational Lisbon Valley copper mine.
In a February 10 announcement, Warner Uhl, executive chairman at the company, explained the deal was a strategic decision in line with the company’s broader “well-planned acquisition schedule.”
Allied saw its share price rise 50.01 percent by Friday to close out the week at C$0.33.
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.