Gold, base Metal Prices buoy market

The report period Oct. 6-12 saw the price of gold fall US70 to close at US$414.70 per oz. in the afternoon in London. In New York, oil prices reached all-time highs — close to US$55 a barrel. There was no trading on Oct. 11, owing to the Canadian Thanksgiving.

The energy index was down less than a point at 192.18 points. The gold index fell 2.9 points, or 1.3%, to close at 213.08, and the diversified metals and mining index was down by 2.7 points, or 1%, at 245.59 points. The S&P/TSX composite index lost 11 points over the week to close at 8,785.86 points.

Wheaton River Minerals led the way in volume, trading 37.2 million shares. The stock fell 6, or 0.2%, to $3.93. There was no news, apart from high gold and copper prices, to account for the action.

Tahera Diamond traded second in volume among the mining stock, rising 10, or 29%, to 44. The company has arranged to sell the diamonds it will produce at its Jericho mine in Nunavut to Tiffany & Co. As part of the deal, Tiffany will lend Tahera $35 million, which Tahera intends to apply to mine construction costs. Startup is slated for 2006.

Constellation Copper traded 13 million shares and closed down 2 at 79. The junior has re-structured its proposed senior credit facility with Investec Bank and will borrow up to US$30 million to pay for construction of the Lisbon Valley mine in Utah.

Breakwater Resources rose 3 to close at 54 on a volume of 11.7 million shares. There was no news, apart from higher base metal prices, to account for the action. Ditto for EuroZinc Mining, which traded 9.3 million shares and closed up 5 at 85.

Noranda lost 20 to close at $21.55 with 11.4 million shares changing hands. Canada’s Industry minister, David Emerson, will consider China’s human rights record when examining state-owned China Minmetals’ planned purchase of Noranda. However, he stressed the importance of trade and investment relationships with China.

Ivernia was up 39%, or 37, to close at $1.31 on a volume of 4.1 million shares. The company reported that Ocean Partners USA will assume Magellan’s exclusive sales agency contract for lead concentrates from Pechiney World Trade (USA), a unit of Alcan. Ivernia holds a 51% stake in the Magellan lead project in Western Australia. The project is set to begin production in the first quarter of 2005.

Jaguar Nickel rose 18%, or 14, to 90. Jaguar has reported that a second pilot plant campaign being carried out at Process Research Ortech in Mississauga, Ont., shows that the junior’s proprietary atmospheric-chloride-leach process is performing as anticipated. Nickel and cobalt extractions averaged 87% and 85%, respectively, from head grades of 1.3-1.4% nickel, 0.03-0.05% cobalt, 21-25% iron and 6.5-7.6% magnesium. During the pilot campaign, nickel and cobalt extractions attained an impressive 97% and 95%, respectively.

SouthernEra Diamond fell 10 to 65. The company has a 60% interest in the Makongonio diamond project in southern Gabon and recently discovered meta-kimberlite bodies.