MINING MARKETS & INVESTMENT NEWS – EASTERN MARKETS — Golds post modest comeback while base metals retreat

The Toronto Stock Exchange 300 index slid 57.49 points in the report period Feb. 10-16, ending the week at 6,386.48.

Gold producers regained some ground, with the gold and precious metals sub-group rising 25.55 points to 5,629.51. In London, gold fetched US$285.35 per oz. on the morning of Feb. 17 — a drop of $1.75 from the previous report period. Meanwhile, silver shed 14 cents to trade at US$5.39 per oz., while platinum rose $2.75 to US$263 per oz.

Volume-leader Placer Dome rose 65 cents to $17.55, while Barrick Gold came in a close second, rising 25 cents to $28.60. Also showing gains were Greenstone Resources, up 8 cents to 73 cents, Euro-Nevada, up 65 cents to $23.20, and TVX Gold, up 5 cents to $2.08.

Gold miner Royal Oak Mines dropped 16 cents to 24 cents after reporting it had received bankruptcy production from an Ontario court. The court order also provides for an immediate cash injection of $8.4 million, which should keep the company afloat while debt negotiations continue.

In a similar story, William Resources transferred ownership in Swedish subsidiary Terra Mining AB to its creditors in lieu of US$31.1 million in outstanding debt. Terra operates the Bjorkdal open-pit gold mine, which is William’s mainstay of production. Negotiations are continuing over outstanding debt on the company’s second operation, Jacobina in Brazil. William remained unchanged by week’s end, at 6 cents.

Base metal prices continued to teeter-totter, with nickel slipping 10 cents to US$2.03 per lb. and copper dropping 3 cents to US63 cents per lb. Lead and zinc each gained a penny. The lower commodity prices hurt producers, with the metals and minerals sub-index falling 76.18 points to 2,943.31.

Inco, which has voiced its desire to end the stalemate at Voisey’s Bay, Nfld., fell 25 cents to $16.65. Likewise, Noranda shed 10 cents to $16.60 but received some comfort from a 15 cents rise in subsidiary Falconbridge, which ended the period at $15.60.

Aur Resources fell 15 cents to $2 on poor year-end financial results. The miner suffered losses in each of the final two quartiles but improved its overall production and operating costs.

Freewest Resources jumped 17 cents to 49 cents as the junior, along with CDN-listed partner Sparton Resources, announced drilling had begun at the Folson Lake platinum-group-metal property near Sudbury, Ont. Drilling will target a prospective horizon near the East Bull Lake intrusion.

Star performer Nuinsco Resources finally had a bad week, dropping 19 cents to $2.42 on heavy trading. The junior recently raised $10 million by selling 5 million warrants at $2 apiece and plans soon to resume drilling at its highly prospective Lac Rocher nickel-copper-cobalt property in Quebec.