TSX resilient after London bombing

The Toronto Stock Exchange survived the July 7 bomb attacks in London to post a 275.93-point, or 2.8%, gain, ending the July 5-11 report period near a 5-year high at 10,217.72. The mining and metals index added 22.35 points to reach 313.01 points, as prices for base metals remained high nearly across the board. The golds lagged behind, tacking on 3.14 points to hit 200.54, as what little “safe-haven” buying there was receded, resulting in a US$3.20 fall in the price of the yellow metal to US$424.20 per oz. by the end of the period.

The nation’s gold miners nonetheless managed to dominate the volume leader board, albeit with mixed results. Bema Gold led the pack as 22.1 million shares traded a dime lower to $2.82; bigger brother Barrick Gold dropped 3, to $30.32. On the plus side were Kinross Gold, up 44 to $7.74, Cambior, 17 better at $2.80, and Placer Dome, which finished $1.02 higher at 19.22. A weeklong strike at Placer’s Zaldivar copper mine in Chile has ended, with the company inking workers to a new 38-month labour contract.

Similarly, workers at the Don Mario gold mine in eastern Bolivia were back at it after signing a new 1-year deal. Shares in mine operator Orvana Minerals responded by gaining a penny to make $1.02.

Perth, Australia-based Moto Gold Mines jumped on to the scene, vaulting $1.25, or nearly 57%, to $3.45 after drilling extended known mineralization on the Moto gold project in the Democratic Republic of Congo. An upgraded resource estimate for the Karagba prospect is planned.

Not to be outdone, Wallbridge Mining soared 18, or 56%, to 50. Grab sampling on a newly discovered offset dyke on the Trill property in the Sudbury Basin has returned up to 10.5 grams platinum-palladium-gold per tonne, 3.72% nickel, and 0.21% copper. Follow-up drilling has begun on the 120-metre-long dyke

Likewise, an impressive drill hole south of the No. 3 shaft at the Macassa mine in northern Ontario sent shares in Kirkland Lake Gold up another 20 to $4.28. A 90.4-ft. core length running an uncut 2.3 oz. gold per ton highlights hole 627.

Not such good news from North American Palladium, which warned that its palladium output for 2005 could slip by as much as 15% as a result of a poor first half. The shortfall is attributed to mechanical problems in the mill, low-grade ore, and power failures resulting from bad weather at the Lac des les mine, near Thunder Bay, Ont. NAP’s CEO, Andre Douchane, recently said he would quit as soon as a replacement was found, but that he’ll remain as chairman. The shares fell 51, or 9%, to $5.34.

An even bigger loser was Lumina Resources, which shed 21, or 32%, to settle at a 52-week low of 45. There was no immediate news affecting the restructuring copper explorer.

Shares in uranium miner Southern Cross Resources slipped two pennies to 92 after tabling plans to merge with South African Aflease Gold & Uranium Resources. When the dust settles, Aflease shareholders will own around 83% of the new company. Aflease recently inked a deal to acquire and develop uranium properties in Canada with Venture Exchange-listed Altius Minerals.