MINING MARKETS & INVESTMENT NEWS — EASTERN MARKETS — Toronto Stock Exchange rallies while gold slips

The good news: the Toronto Stock Exchange 300 index climbed 299.37 points during the report period Oct. 28-Nov. 3, to end the week at 6,296.51. The bad news: gold was devalued once again, dropping US$3.65 to trade at US$290.10 per oz. on the afternoon of Nov. 4.

It was the second consecutive period in which gold tumbled by more than US$3 per oz. Surprisingly, the TSE’s precious metals and minerals sub-group fell only 8.37 points, ending at 6,510.32.

A bright spot in the glum gold market is a promising new project in Argentina’s San Juan province. The latest results from the Veladero project include an impressive 220 metres averaging 1.7 grams gold and 69.81 grams silver per tonne. Accordingly, 60%-owner Argentina Gold, a VSE listing, climbed on the news, though, curiously, 40%-owner Barrick Gold fell 55 cents to $31.60.

Riding on the coat tails of that discovery is Opawica Exploration, which announced it had reinstated, subject to regulatory approval, all its land positions in Argentina. Included in the package are four properties near Veladero, and in each of these the company can earn a 100% interest. By the end of the day, the news had boosted the company’s share price to 51 cents, representing a gain of 200% from the previous period and the highest percentage gain in the eastern markets.

Gold producers had a mixed week: Placer Dome jumped 75 cents to $23.25; Kinross Gold edged ahead 4 cents to $3.90; TVX Gold dropped 29 cents to $2.64; Euro-Nevada Mining fell $1.35 to $22.70; and Franco-Nevada Mining fell 85 cents to $29.50.

The TSE’s metals and minerals sub-index ended the period at 3,146.01, up 81.67 points from the previous one. Nickel rose 8 cents to US$1.83 per lb., while copper and zinc each gained a penny; lead remained at par.

Like their precious metal counterparts, base metal producers teeter-tottered: Noranda ascended $1.20 to $23.75; Falconbridge gained 65 cents to $16.65; Rio Algom lost 60 cents to end at $19.75; and Inco fell 15 cents to finish at $16.20.

Cameco was catapulted to $32.25, an increase of $5.50. The company recently reported its 9-month financial results, which, despite low uranium and gold prices, betrayed a hefty profit.

Aurizon Mines jumped 20 cents over the week to 70 cents as the junior announced healthy boosts in earnings and cash flow. Aurizon’s share of gold prodcution soared to a record 16,007 oz. during the past quarter, thanks in large part to higher-than-expected ore grades at both the Beaufor and Sleeping Giant mines in northwestern Quebec.