MINING MARKETS & INVESTMENT NEWS — EASTERN MARKETS — Marshall Minerals soars on deal for deposit in Tajikistan

The Toronto Stock Exchange had a broad trading range during the June 24-29 report period, with the TSE 300 composite index rising 3.3% to 7,409.38 points. The metals and minerals sub-index gained 2%, hitting 3,577.80 points, while the gold and precious metals sub-index rose marginally to 5,960.03 points.

Despite another lacklustre period of base metal prices, most base metal majors posted strong gains for a second consecutive week: Noranda was up $1.20 to $25.45; Falconbridge rose 40 cents to $17.25; Rio Algom climbed 80 cents to $22; Boliden rose 30 cents to $8.25; Cominco was up 65 cents to $22.15; Cameco rose $1.95 to $41.95; and even Inco gained a nickel to close at $20. Among the majors, only Teck broke the pattern, slipping 15 cents to $16.05.

Gold prices had a second week of recovery, climbing US$1.85 to reach a London morning fix on June 30 of US$295.75. Gold miners, however, posted a mixed week: Barrick Gold jumped 80 cents to $27.20; Placer Dome was up 10 cents to $16.45; and Kinross Gold was up a nickel, closing at $5. Among the losers were: TVX Gold, which dropped 25 cents to $4.35; Cambior, which shed 40 cents to hit $8.25; and Agnico-Eagle Mines, which was off 30 cents at $7.75.

The largest percentage gainer on the eastern markets was Marshall Minerals, which jumped from 75 cents to $1.45 in advance of a June 30 announcement that it had reached a preliminary agreement with the Tajikistani government to develop one of the country’s largest polymetallic mineral deposits.

Marshall has agreed to fund a feasibility study which, if satisfactory, will permit it to finance the project’s development, earn a 50% interest and be granted operator status. Marshall says it has already received expressions of interest from several international financial institutions.

For Sutton Resources, which fell 95 cents to $8.30 for the week, a positive feasibility study released in mid-June of the 7.4-million-oz. Bulyanhulu gold deposit in Tanzania has

only provided a brief respite from a 3-

month-long decline in price. The study showed total capital costs (exclusive of sunk costs of US$63 million) of US$211 million — a figure about US$26 million higher than originally anticipated.

International Curator Resources dropped 3 cents to 38 cents on heavy trading as the Vancouver-based junior announced a private placement of up to 2 million shares at 35 cents each, for gross proceeds of $700,000. The net proceeds will be used primarily to fund ongoing work at the Boleo copper-cobalt project in Mexico.

Treminco Resources lost 40% of its value, falling 20 cents to 30 cents. The junior recently sold 1 million shares in a private placement at 60 cents each. The gross proceeds of $600,000 will be used to complete a due diligence review of the Elkhorn gold project in Montana, which the company can acquire from Newmont Gold for shares and cash payments.