Canada’s miners felled by lower prices

The April 14-20 report period was relatively quiet for gold as the yellow metal shed just US90 to finish at US$396.85 per oz. in London. The Toronto Stock Exchange’s gold index mimicked the metal’s performance, peaking at 214.05 points at mid-period, only to end 7.19 points, or 3.4%, lower at 202.64. The diversified miners also stumbled at the period’s end to finish 5.36 points lower at 216.66, following most of the base metals. Overall, the S&P-TSX composite index managed to yo-yo 37.12 points southward to 8,602.98, with much of the loss coming on April 20.

Making news during the period was Ivanhoe Mines, which hired financial advisors to help it sort though several offers of interest in its Oyu Tolgoi copper-gold project in Mongolia. Many market-watchers expect Ivanhoe to part with up to half of the project. Shares in the Robert Friedland-led company finished 98, or 13%, higher at $8.53.

Not such good news for Metallica Resources, which reported that a Mexican court has nullified its land lease agreement for the Cerro San Pedro heap-leach gold-silver project. Metallica is appealing the decision to a higher court while construction continues. The shares recovered from an early fall to end unchanged at $2.08.

Similarly, Southern Cross Resources managed to overcome a precipitous drop early in the period to finish 3 higher at 92. The company said a recently completed 49-hole drilling program would not boost resources at its Honeymoon uranium project in South Australia. Indicated resources there stand at 7.3 million lbs. U3O8. The company says it will consider building a plant that is smaller and longer-lasting than the originally planned 2-million-lb.-per-year operation.

In diamond news, Aber Diamond appointed Thomas O’Neill as chief executive officer of jeweler Harry Winston. O’Neill was formerly an executive with the Burberry Group, Tiffany & Co., and Louis Vuitton. He also becomes president of Aber, which recently acquired a 51% stake in Harry Winston. Aber owns a 40% stake in the Diavik diamond mine, in the Northwest Territories. Aber’s issue climbed 31 to $41.36.

Twin Mining has inked a deal allowing a subsidiary of Rio Tinto to earn up to a 75% stake in the Jackson Inlet diamond project on Baffin Island’s Brodeur Peninsula. Twin forfeited some early gains to end a penny to the good at 35.

Recent entrant Guinor Gold also surrendered mid-period gains, rising 8 to $1.33 after venturing as high as $1.70. Guinor has acquired 93.7% of the issued shares of its Norwegian-based parent, Kenor, and is now obliged to make an offer for the remaining shares. The 1-for-1 share swap will see Kenor re-domicile to the Yukon Territories. Kenor’s main asset is the 85%-owned Lro gold operation in the Republic of Guinea, which has produced some 650,000 oz. of gold since it opened in 1995.