MINING MARKET & INVESTMENT NEWS — EASTERN MARKETS — Kinross solidifies producer status with True North

Gold prices showed some strength during the April 7-13 report period, rising $3.60 to US$283.85 per oz. on the London morning fix of April 14.

Gold’s rise buoyed Canada’s two biggest producers, with Barrick Gold up 65 cents to $25.85 and Placer Dome rising 50 cents to $16.50. On the negative side, Cambior announced modest first-quarter production gains but still slipped 35 cents to $5.40, while TVX Gold plummeted 33 cents to reach a new 5-year low of $1.47.

Kinross Gold was up a penny to $2.98 as it announced the US$28-million acquisition of Newmont Gold’s 65% interest in the True North joint venture in Alaska. Kinross, which will own 100% of True North, intends to use the 1.3-million-oz. gold deposit as high-grade mill feed for its Fort Knox gold mine, 10 miles to the south.

Among the gold juniors, William Resources was the second-most active issue, rising 4 cents to 8 cents on 37 million shares traded. The junior nabbed a 0.15% net smelter return royalty on the Shkolnoye gold project in eastern Russia from subsidiary Rux Resources, which trades over the counter. The announcement preceded another in which Rux noted it had acquired the right to buy up to an 8.3% equity interest in a Dallas-based internet service provider. At presstime, the company was trading at 18 cents, having bounced wildly between 4 cents and 50 cents during the report period, when 14.8 million shares changed hands.

Santa Cruz Gold rose 2 cents to 6 cents on heavy trading as the company announced a $900,000 Mexican tax refund, as well as plans to sell its Lluvia de Oro gold mine in Mexico’s Sonora state for US$120,000 cash and the assumption of liabilities. Santa Cruz is merging with Queenstake Resources, which closed the period up 2 cents to 23 cents.

Base metal prices also showed gains this week, with nickel rising 6 cents to US$2.28 per lb., copper jumping 2 cents to 65 cents per lb., lead up a penny to US23 cents, and zinc unchanged at US45 cents per lb.

Among the nickel producers, Inco shot up $1.05 to $20.75 as its 59%-owned Indonesian subsidiary announced it would borrow US$200 million from its parent to fund plant expansion. Meanwhile, rival Falconbridge rose 75 cents to $16.75 as Chilean President Eduardo Frei cut the ribbon on the company’s 44%-owned Collahuasi copper mine, now one of the largest copper mines in the world.

Among other base metal majors, Rio Algom lost 25 cents to $15.60, Teck’s B shares were unchanged at $10.60, Cominco dropped 45 cents to $20.65, and Boliden rose 33 cents to $2.53.

NAR Resources shot up 53 cents to 80 cents ($1 at presstime) as the Toronto-based junior announced it may acquire an interest in a titanium exploration project in eastern Canada.