The S&P/TSX Venture Composite Index (INDEXTSI:JX) rose 0.28 percent on Friday (September 29) to end at 778.27 points.
The TSXV gained slightly as the TSX hit a four-month high, buoyed by gains in the financial group, which includes bank stocks.
Statistics Canada reported on Friday that Canada’s GDP was flat in July, ending eight straight months of gains. The news prompted the Canadian dollar to weaken in value against the US dollar. The lackluster data may mean a rate hike expected by the Bank of Canada next month will not happen.
Against that backdrop, a number of TSXV-listed mining stocks experienced significant share price gains last week. The five top gainers are as follows:
- African Gold Group (TSXV:AGG)
- Rathdowney Resources (TSXV:RTH)
- Novo Resources (TSXV:NVO)
- Melior Resources (TSXV:MLR)
- Jayden Resources (TSXV:JDN)
Read on for a brief overview of those companies and what moved their share prices last week.
African Gold Group
African Gold Group signed a letter of intent (LOI) with Hummingbird Resources (LSE:HUM) last Wednesday (September 27). Under the LOI, Hummingbird can purchase a 19.99-percent stake in African Gold Group for $6.44 million and can acquire half of the company’s Kobada gold project.
The deal will help finance the development of Kobada and will give Hummingbird the right to operate the project. Hummingbird plans to take concentrate from Kobada and process it at its Yanfolila project, which is scheduled to start producing gold in December.
African Gold Group CEO Stephan Theron called the partnership a “win-win for both groups.” The company’s share price rose 55.56 percent to close at $0.07 last week.
The company has not released any news recently, but it is worth noting that zinc prices have doubled since January 2016. Wood Mackenzie analyst Andrew Thomas recently told Reuters that the rally is expected to continue for at least the next 12 months.
Novo Resources President and Chairman Dr. Quinton Hennigh presented at the Denver Gold Forum on Monday (September 25). During the talk, Dr. Hennigh discussed the company’s exploration plans for the Karratha region of Western Australia.
The company’s most recent news came on September 21, when it received approval for core drilling at the Purdy’s Reward prospect at its Karratha gold project. The Purdy’s Reward tenement is part of a farm-in and joint venture Novo has with Artemis Resources (ASX:ARV). Last week, Novo saw its share price rise 40.43 percent to close at $6.35.
Melior Resources’ main asset is the Goondicum ilmenite and apatite mine in Queensland. In February, the company announced it was taking steps to restart production at Goondicum due to improving ilmenite prices. During the summer, the company said that once a decision was made to restart the mine it would take up to six months of pre-commissioning time to finalize site preparations.
The company also owns the intellectual property rights to the Browne metallurgical process, and has a 6-percent stake in nickel-focused Asian Mineral Resources (TSXV:ASN). Melior’s share price rose 37.5 percent over the course of last week to close at $0.06.
Jayden Resources’ most recent news came at the beginning of September, when it began a drill program at its Silver Coin project in Northwestern BC. Silver Coin is an advanced-stage gold-silver property located about 25 kilometers north of Stewart in the Golden Triangle district.
The firm said the 2017 program will consist of approximately 6,000 feet of drilling and will focus on extending and upgrading lenses of known high-grade gold mineralization within the Main Breccia zone to the northwest, as well as testing additional targets along strike to the south and potential subparallel zone to the east. Jayden’s share price rose 36.36 percent last week to close at $0.29.
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, Melissa Shaw, hold no direct investment interest in any company mentioned in this article.