Gold Explorers Find Support in Choppy Market

All major indexes opened in the red last Friday (August 18), with the S&P/TSX Venture Composite Index (INDEXTSI:JX) erasing gains made earlier in the month.

Mounting risk aversion from investors wary that the US Federal Reserve will look to implement more counter-inflationary measures weighed on markets across North America. After the morning bell, the TSXV fell to a five day low of 651 points, 30 percent lower than the 940 points the junior exchange started the year with.

Oil prices were also on the decline, slipping to a six month low, while the gold price was unable to find support at the US$1,800 per ounce level reached the previous week.

By Friday, the yellow metal was holding in the US$1,750 range. Silver also shed gains made in early August, losing roughly US$1 between August 10 and 19.

The five TSXV-listed mining stocks that saw the biggest rises last week are as follows:

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

1. Vulcan Minerals

Explorer Vulcan Minerals is focused on precious and base metals. The company’s main asset is the Newfoundland-based Springdale copper-gold project.

In addition to several “strategic land positions,” Vulcan holds a 36 percent stake in Atlas Salt (TSXV:SALT,OTCQB:REMRF); in mid-June, it expanded its equity interest in Sassy Resources (CSE:SASY,OTCQB:SSYRF).

Vulcan President Patrick Laracy offered the following comments in a press release:

“As part of our ongoing project generation activities, we are pleased to have completed this deal with a strong partner providing us with increased equity exposure to the mineral exploration boom in Newfoundland.”

Shares of Vulcan climbed 44.42 percent last week to close at C$0.75.

2. Royal Road Minerals

Royal Road Minerals has honed its efforts on gold and copper exploration and development projects located in Nicaragua and Colombia. In Colombia’s Antioquia, Caldas and Nariño departments, the company holds 334,000 hectares of application areas and 37,000 hectares of concession contracts.

On August 4, Royal Road released a project update for its Colombian properties.

“It is largely accepted that Colombia has the potential to become one of the world’s leading copper and gold producers and that it could be in a position to help redress the World’s shortfall in metals which are critical to the global energy transition” said Tim Coughlin, president and CEO.

By Friday, Royal Road shares were up 42.78 percent, ending the week at C$0.28.

3. Constantine Metal Resources

Constantine Metal Resources is an explorer focused on the Palmer copper-zinc-silver-gold-barite project in Southeast Alaska. Palmer is a joint venture with Dowa Metals & Mining, with Constantine serving as operator.

Last Monday (August 15), Constantine entered into a definitive agreement with American Pacific Mining (CSE:USGD,OTCQX:USGDF) that would see the latter acquire all issued and outstanding shares of Constantine.

“We believe American Pacific’s focus, financing capabilities and breadth of exploration experience in the US will result in Palmer reaching its full potential,” Garfield MacVeigh, Constantine’s CEO, said in a statement.

The deal helped shares of Constantine add 41.55 percent over the five day period, closing at C$0.41.

4. Corsa Coal

Corsa Coal produces metallurgical coal, which it sells to domestic and international steel and coke producers. The company has four operating mines in Pennsylvania and Maryland, and has plans for another two mines.

Corsa did not release any updates last week, but shares of the coal miner grew 36.09 percent to trade for C$0.34.

5. Midland Exploration

Midland Exploration is focused on gold, platinum-group metals and base metals exploration in Quebec.

At the beginning of August, the diversified company gave shareholders an update on a VTEM electromagnetic survey conducted at its Tête Nord nickel and copper property. Tête Nord covers 975 claims over a surface area of about 535 square kilometers, and is currently under option by Rio Tinto Exploration Canada, a unit of Rio Tinto (ASX:RIO,NYSE:RIO,LSE:RIO). Highlights from the survey include the identification of multiple new conductors.

Last week, shares of Midland rose 29.56 percent, ending the five day period at C$0.46.

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: Constantine Metal Resources is a client of the Investing News Network. This article is not paid-for content.

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