Resource groups mirror physical prices

In a repeat performance, base metal issues fared better, on the whole, than their precious metal peers over the holiday-shortened period ended Jan. 6.

The diversified metals and minerals index climbed 2.35 points, whereas the golds slipped 1.48 points. Physical trading in London, on the other hand, pushed down the base metals — with the exception of zinc, which remained unchanged — while pulling precious metals ahead.

Inco was the only nickel issue to sink in value, falling $1.71 as spot prices for its product slipped US40 per lb. Falconbridge led the charge by the rest, rising 92 to $32.50, while Sherritt International rose 12 to $7.49 and LionOre Mining rose 11 to $8.16.

Inmet Mining continued its rally, jumping $2.01 to $19.15. A quarter of the gain came on the last day, when Reuters reported that the Ok Tedi mine in Papua New Guinea will attempt to sell 20,000-30,000 tonnes of copper concentrate into the spot market in the latter half of the year. Inmet holds an 18% interest in the copper operation.

Canada’s major gold producers all lost ground as spot prices surged ahead US$12.40 in London markets, fixing the yellow metal at US$428 per oz. on the morning of Jan. 6. Barrick Gold fell 39 to $29.65, Kinross Gold, 12 to $10.60, and Placer Dome, 6 to $23.99.

Junior TVI Pacific touched a new 52-week high of 27.5 as 13 million shares changed hands. At period’s end, China’s central government granted the company a business licence for subsidiary Hunan Pacific Geological Exploration, the first entirely foreign-owned mineral exploration company in the country.

Investors took a brighter view of IMA Explorations after the company released more drilling results from its Navidad project in Argentina. The best interval from the two latest holes ran 117.3 grams silver and 3% lead over 136.9 metres, though brecciated volcanics carrying galena and pyrite were noted from surface to a depth of about 290 metres. The issue closed 14 higher at $1.89.

Junior Southern Cross Resources put in a nice percentage gain, jumping 20, or nearly 18%, to make $1.35. The gain came on unusually heavy trading activity, with more than 3 million shares changing hands, far higher than the daily average of 200,000. The company recently raised $6 million via a private placement, proceeds from which are earmarked for exploration and development activities at the Honeymoon uranium project in South Australia. A revised feasibility study is in the works.

Also ahead was Jaguar Nickel, which soared 32, or about 20%, to a new 52-week high of $1.97. Jaguar is in the midst of an environmental baseline study at its Sechol property in Guatemala. The study is focused on the El Inicio starter pit, and on the Cahabon and Polochic Rivers and Lake Izabal, 43 km east of the property.