Gold recovers as uranium miners heat up

The Toronto Stock Exchange’s gold index rode a climbing gold price 8.34 points higher to finish at 218.13 points during the March 3-9 report period. The yellow metal regained lost ground, and then some, to end US$11 per oz. higher at US$401.50 per oz. in the afternoon in London at the period’s end. The diversified metals and mining index was less fortunate, returning 5.8 points from the previous period’s surge to end at 223.77. Overall, the S&P-TSX composite index finished the 7-day stretch 45.39 points lighter at 8,750.31.

Uranium juniors were a busy bunch. UEX vaulted 17, or 46%, to 54. The company is in the midst of US$1.9 million worth of geophysical surveying and drilling, which will be equally split between the company’s Hidden Bay and Riou Lake uranium projects in the Athabasca Basin of northern Saskatchewan. Work at both properties is expected to run until around mid-April. Denison Energy grabbed a dime to make $6.40. Shareholders recently approved a plan of arrangement that would see the company split into three separate entities focused on mining, hydrocarbons, and oilfield services. International Uranium wasn’t able to maintain its early gains, slipping 39 to $2.89. Early on, the company managed to hit a 52-week high of $3.28 after it and Vancouver-listed partner JNR Resources tabled some high-grade uranium grades from two holes at the Moore Lake project in the Athabasca Basin. Both holes returned grades better than those encountered in the discovery hole.

Meanwhile uranium giant Cameco slipped 12 to $62.96. Cameco recently inked a deal to acquire a 25.2% interest in two 1,250-MW nuclear units near Houston, Tex., from American Electric Power (AEP) for US$333 million. The two units comprise the South Texas project, the remainder of which is held by Texas Genco (30.8%), San Antonio City Public Service Board (28%) and Austin Energy (16%). The three companies have a 90-day right of first refusal on AEP’s stake.

Queenstake Resources rose 9, or 13%, to 76. Exploration drilling on extensions of the Starvation Canyon project returned up to 15 ft. grading 1.06 oz. gold per ton. The drilling has extended mineralization over 300 ft. beyond the main Starvation Canyon mineralization, which is on the southwestern portion of the Jerritt Canyon district in Nevada. Plans are being laid for follow-up drilling to the east-southeast.

Shares in Manhattan Minerals received a late-period boost after the company announced that its CEO, Lawrence Glaser, and CFO, Horng Dih Lee, will step down (though Glaser will remain as chairman). The company also reaffirmed its commitment to its existing Peruvian projects despite a row with government-run Centromin Peru over Manhattan’s right to earn a 75% stake in the embattled Tambo Grande project. Manhattan has brought that fight to arbitration. The issue ended 1.5 richer at 33.5.