Base Metals

Nickel Investing

Last week’s top-gaining TSXV stocks were Asian Mineral Resources, Garibaldi Resources, Niobay Metals, FPX Nickel and Noble Mineral Exploration.

The S&P/TSX Venture Composite Index (INDEXTSI:JX) fell 2.03 points on Friday (September 8) to close the week at 772.02 points.
According to Reuters, the index was pushed down early Friday on the back of a fall in mining and energy stocks. Economists believe Hurricane Harvey and Hurricane Irma could “weigh on U.S. economic growth for the third quarter,” and their concern has made investors cautious.
Despite the index’s decline, a number of TSXV-listed mining stocks recorded impressive share price gains last week, with nickel companies in particular seeing major increases. The five top gainers last week are as follows:

  • Asian Mineral Resources (TSXV:ASN)
  • Garibaldi Resources (TSXV:GGI)
  • Niobay Metals (TSXV:NBY)
  • FPX Nickel (TSXV:FPX)
  • Noble Mineral Exploration (TSXV:NOB)

Here’s a look at those companies and the factors that moved their share prices last week.

Asian Mineral Resources

Asian Mineral Resources owns and operates the Vietnam-based Ban Phuc nickel mine, which it says is one of the few new sources of nickel sulfide in the world. It is also exploring for and developing additional high-grade nickel assets in the country.
Last week, the company filed a NI 43-101 technical report for the Ta Khoa concession. The concession covers 49.8 square kilometers and surrounds the Ban Phuc mine. The company’s share price rose 60 percent during the five-day period to end at $0.04. Asian Mineral Resources’ share price may also have been boosted by a rise in nickel prices — the base metal hit a two-year high on September 3.

Garibaldi Resources

Garibaldi Resources is advancing projects in both Mexico and BC, but recently it has been focusing on its 200-square-kilometer land package in BC’s Eskay Mining Camp. The company’s E&L project at Nickel Mountain is located in the area, and on September 1, Garibaldi intersected two long intervals of nickel-copper sulfide mineralization at the project.
The company has not released any news since then, but last week its share price jumped 57.14 percent to close at $1.20. It’s possible that Garibaldi was also pushed up by last week’s nickel price increase.

Niobay Metals

Niobay Metals’ main assets are its 100-percent-owned James Bay niobium property in Ontario and 72.5-percent-owned Crevier niobium-tantalum resource in Quebec. Last week, the company’s share price rose 55.56 percent after it entered into an option agreement to acquire up to a 65-percent stake in Midland Exploration’s (TSXV:MD) La Peltrie gold property.
According to the company, La Peltrie is located about 25 kilometers from a high-grade gold zone in the Lower Detour area held by Detour Gold (TSX:DGC). It is also about 25 kilometers from the past-producing Selbaie mine. Niobay’s share price closed last week at $0.21.

FPX Nickel

FPX Nickel is developing the BC-based Decar nickel project. The company announced on September 7 that it has begun a summer drill program at the project. The program will be a minimum of 2,000 meters, and will be aimed at testing the southeast extension of the Baptiste deposit. According to FPX, it should be completed by September 30.
The company also said last week that Peter Marshall has been appointed to its board of directors. Its share price rose 44.44 percent to end last week at $0.12.

Noble Mineral Exploration

Noble Mineral Exploration holds over 70,641 hectares in Ontario’s Timmins/Cochrane area, and is focused on generating joint venture exploration programs in the area. It also holds a portfolio of diversified exploration projects in Ontario’s Wawa and North Timmins areas, as well as in Saskatchewan.
Last week, the company’s share price jumped 39.13 percent to end at $0.18. On September 7, the company announced that a private placement financing it announced on August 25 has been fully subscribed for. The first tranche of the financing closed on September 1.
Data for 5 Top Weekly TSXV Stocks articles is retrieved each Friday at 10:30 a.m. PST using The Globe and Mail’s market data filter. Only companies with a market capitalization greater than $10 million prior to the week’s gains are included. Companies within the mining and precious metals sectors are considered.
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Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.


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