Resource stocks recover in US

TORONTO STOCK EXCHANGE

U.S. resource equities rallied in the period May 3-9 as the broader markets made up ground from April’s setbacks. The S&P 500 index was up 16.68 points, or 1.4%, at 1,178.84.

Base metal producers made the biggest gains. CVRD gained US$1.55 to finish at US$28.57, with a volume of 10 million shares making it the most actively traded of the big miners. Phelps Dodge recovered from a couple of down weeks by adding US$2.27 for a close of US$89.38, and Freeport-McMoRan Copper & Gold tacked on US$1.49 to end the period at US$36.27.

The golds were mixed, but mostly better. Newmont Mining was up US57 at US$38.29 and AngloGold Ashanti added US38 to finish at US$32.30. Randgold Resources reported a moneymaking quarter and had the biggest gain among the golds, rising US$1.22 to US$13.06.

One of the bigger price moves belonged to Nevada explorer Quincy Gold, which was US18 higher at US58. There was no news from the company, though it is in the middle of a drill program at its Seven Troughs property in Nevada, testing extensions of mineralized structures at the Coalition and Dixie Queen gold mines.

Investors in some highly promoted U.S. juniors appear to be losing patience with the promises. El Capitan Precious Metals was off 8.5%, falling US4 to US43 despite “very exciting news” from its El Capitan gold-in-iron-oxides project in New Mexico. Aberdene Mines, which most recently drilled a copper project in Nevada but has fallen uncharacteristically silent since February, touched a new low of US24 on the way to a close of US29. Heavily touted Peruvian explorer Andresmin Gold also made a new low, US27, but recovered to US31. The British Columbia Securities Commission had its patience tested, and issued a cease-trade order in the province until Andresmin files an independent resource estimate for the Winicocha gold deposit.