Broad market sinks on fears of Iraqi quagmire

With the war in Iraq failing to shape up as the cake-walk many were predicting, the S&P-TSX composite index retreated 68.5 points to end the March 17-25 report period at 6,385.

Gold performed about as miserably, falling another US$3.90 to a London afternoon fix of US$331.90 per oz. on March 25. Canada’s major producers felt the pinch, and the S&P-TSX gold sub-index plummeted 10.32 points, or 6.6% of its value, to settle at 146.66 points.

Kinross Gold was the busiest major, shedding $1.09 to $7.90 with 11.9 million shares traded. Placer Dome was next in line as 10.2 million shares found their way $1.10 lower at $13.05. Barrick Gold escaped with a 72 loss to end at $21.53 on 9.8 million shares.

Wheaton River Minerals ranked as the most traded miner climbing 9 to $1.29 with nearly 15.7 million shares changing hands. On March 25, Wheaton and an unnamed partner announced plans to split the cost of acquiring BHP Billiton’s 25% stake in the Bajo de la Alumbrera mine in Argentina. Having just acquired a quarter-stake from Rio Tinto, Wheaton will end up owning 37.5% of the mine.

St Andrew Goldfields made a rare appearance on the top 10 traded list, with 8.2 million shares trading 2 higher to hit 21. Under a signed agreement, St Andrew’s 45.4%-owned subsidiary, Geoinformatics, will pick up Kennecott Exploration’s orphaned projects plus the Uncle Sam gold project in Central Alaska in return for a US$250,000 exploration commitment and a 2% net smelter return. Geoinformatics will build a three-dimensional mineralization model using Kennecott’s Great Basin data.

Meridian Gold tumbled $2.79, or 16.6%, to $14.01 after a stunning defeat in a non-binding referendum on the Esquel project, held in the city of Esquel. Some 80% of participants voted against mine development.

Also down was Dublin-based Moydow Mines International, which dropped a dime to 80 after announcing it would sell its half-stake in the Ntotoroso gold project in Ghana to Newmont Mining for $20 million.

The S&P-TSX diversified metals and mining sub-index fell 5.16 points, or 4%, to end the period at 124.62. Inco saw the most action, dropping $2.67 to $27.60 on 6.4 million shares. The nickel miner is going ahead with its Voisey’s Bay nickel project in Labrador even though capital cost estimates are 14% higher than anticipated.

Wallbridge Mining made the biggest percentage move among the base metal miners; unfortunately the issue plunged 44.8% to 69. The company reported inconclusive results from two holes collared on an anomaly under its Windy Lake property near Sudbury.

Fellow junior General Minerals added 2, or 20% of its value, to finish at 12. Australian-based Ranger Minerals plans to sell 19.5 million of its 23.3 million General Minerals shares (representing a 55% stake) to several buyers for a dime apiece.