Gold price buoys market

The report period Aug. 12-24, saw the price of gold rise US$12.35 per oz. to finish at US$406.20 in the afternoon in London on Aug. 24. Gold fell more than US$4 on the final day of trading. The gold index was up 12 points to close at 193.61, and the diversified metals and mining index was up by 10 points at 217.88 points. The S&P TSX composite index was up 148 points and closed at 8,316.40.

Six mining stocks traded more than 10 million shares each.

Kinross Gold led the way in volume, trading about 26 million shares. It rose 84, or 12.4%, to close at $7.61. There was no news released by the company to account for the volume.

Wheaton River Minerals climbed 12.5%, or 39, to close at $3.51 on a volume of 19 million shares. Wheaton still plans to create a silver spinoff, Silver Wheaton. Meanwhile Coeur d’Alene Mines has re-launched its offer to buy Wheaton.

Queenstake Resources traded 17.5 million shares and rose 6.8%, or 3, to close at 47. Queenstake reported drill results from its Starvation Canyon project in Nevada. Four holes intersected grades of 0.29-0.47 oz. gold per ton over widths of 10-30 ft.

Eurozinc Mining traded 13 million shares and closed at 68, up 7, or 11.5%. On the final day of trading, 9 million shares changed hands, but there was no news to account for the high volume.

Placer Dome rose $1.32, or 6.4%, to close at $21.91 on a volume of 13 million shares. A bank has agreed to provide up to $1 billion for the development of the Cerro Casale copper-gold deposit in Chile. Placer owns 51% of the project.

Bema Gold traded about 11 million shares. The stock rose 14.8%, or 41, to close at $3.18.

International Uranium shot up 30%, or 78, to close at $3.38 on a volume of about 6 million shares. International Uranium and JNR Resources reported drill results from their Moore Lake project in northern Saskatchewan. Uranium prices have been enjoying a resurgence and recently hit a long-term high of US$19 per lb.

Southern Cross Resources rose 14.6%, or 17, to close at 97 on 9 million shares, however the stock was down 19% on the final day of trading.

Defiance Mining shot up 23.7%, or 9.5, to close at 49.5 on a volume of 3 million shares. Rio Narcea has offerred to buy Defiance. The transaction will be voted upon Aug. 30.

Crystallex International jumped 17%, or 52, to close at $3.57 on a volume of 4.4 million shares. The company released second-quarter results. Its revenue more than doubled as a result of higher gold production and it raised net proceeds of US$82.2 million, enabling the development of Las Cristinas when a final permit is received.

Miramar Mining traded 7 million shares, falling 18%, or 28, to close at $1.26. The Nunavut Impact Review Board failed to approve the Doris North gold mine. Miramar expects the setback to delay production, but it is working on a revised application.

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