MINING MARKETS & INVESTMENT NEWS — EASTERN MARKETS — Broad market shines on mixed producer showings

The Toronto Stock Exchange 300 index climbed 287.21 points during the Nov. 10-16 report period, ending at 7,570.73. Resource stocks were mixed again, with the metals and minerals sub-group rising 47.2 points to 3,838.94 and the gold and precious metals sub-group falling 55.25 points to 3,848.94.

Gold jumped $3.60 to land at a London morning fix of US$295.45 on Nov. 17. Silver rose 6 cents to US$5.17 per oz., platinum climbed $21 to US$456 per oz., and palladium jumped $16 to US$415 per oz.

Volume-leader Placer Dome dwindled 35 cents to $17.80, while rival Barrick Gold lost 40 cents to close at $26.20. Faring better was Kinross Gold, which dropped only 28 cents to $3.05.

Going the opposite direction were: Franco-Nevada Mining, up 25 cents to $26.50; TVX Gold, up 8 cents to $1.33; and Iamgold, up 5 cents to $3.45. TVX has awarded SNC-Lavalin the contract to develop its Olympias polymetallic project in Greece.

Dayton Mining rose 1 cents to 12 cents on news of turning a profit in the third quarter. The junior, which operates the Andacollo gold mine in central Chile, produced 34,001 oz. gold in the third quarter at US$188 per oz.

North American Palladium jumped 25 cents to $4 on news that resources are being doubled at its Lac des les palladium mine near Thunder Bay, Ont. Measured and indicated resources now top 94.1 million tonnes averaging 1.66 grams palladium, 0.18 gram platinum and 0.14 gram gold per tonne, plus 0.062% copper and 0.053% nickel. A study is examining the feasibility of increasing milling rates six-fold to 15,000 tonnes daily.

Nickel finally settled after a 2-week rally, landing at US$3.60 per lb. on the morning of Nov. 17, for a drop of 8 cents. Also down were copper, off 2 cents to US77 cents per lb., and lead, off a penny to US21 cents per lb. Zinc remained unchanged, at US52 cents per lb.

Inco announced that an amicable deal had not yet been reached with the Newfoundland government on how it will develop the Voisey’s Bay nickel project in Labrador. Premier Brian Tobin says the major is leaning toward processing ore in-province, owing to rebounding nickel prices. Inco finished the period at $28.90, down 5 cents.

Among juniors, Pangea Goldfields edged ahead 15 cents to $3.85, while Tan Range Exploration added 6 cents to close at 46 cents. Each has signed a separate development deal with Barrick regarding their, respectively, Tulawaka and Itetemia properties. Both are near the major’s advanced Bulyanhulu gold deposit in Tanzania’s Lake Victoria Goldfields district.

Montreal-based junior Itec-Mineral signed an agreement with McWatters Mining giving the former the option to exploit 35 million tonnes of gold-bearing tailings on the latter’s Sigma mine property in Val d’Or, Que. To exercise its option, Itec must complete a feasibility study on the project, which forms part of the junior’s larger plan to reprocess tailings from several sites in the Val d’Or camp. Over the week, Itec shares nosedived 7 cents to 8 cents while McWatters rose 2 cents to 52 cents.