Scrooge-like meanness grips TSE

Last-minute selling before the Christmas holidays saw the Toronto Stock Exchange 300 index fall 58.17 points over the Dec. 19-20 report period. The benchmark finished the shortened week at 7,528.3 points.

Gold eased back $1.10 to land at a London morning fix of US$277.80 per oz. on the morning of Dec. 21. In step with the yellow metal’s depreciation, Barrick Gold slipped 22 to $26 and Placer Dome fell 50 to $17.70. Kinross Gold, the smallest of the trio, eased off 2 to $1.16.

The mid-tier producers were a mixed bag: Goldcorp climbed 9 to $19.34; Meridian Gold dropped 40 to $16.50; and Agnico-Eagle Mines fell 27 to $16.08. Goldcorp once again struck high grades at its Red Lake mine. Deep hole 860 cut 2.4 metres of 185.5 grams per tonne to extend the HW5 zone 40 metres vertically below the resource envelop.

Among smaller producers, Northgate Exploration rose 2 to $1.30 as it announced intentions to raise $140 million through equity financing and recapitalization. Some of funds will be applied to the Kemess North deposit, which drilling has expanded this past year to 442 million tonnes grading 0.4 gram gold per tonne and 0.23% copper.

Geomaque Explorations reached an agreement with its principal lender, Resource Capital Fund II, regarding outstanding debt. The junior miner also agreed to take on heavy dilution to raise US$1.3 million through Resource Capital and two other instituational investors. Geomaque ended the period unchanged, at 7.

Nickel continued its upward movement of late, rising 6 in London to a morning fix of US$2.58 per lb. on Dec. 21. Zinc, copper and lead each gained a penny.

Alcan was the most actively traded base metal issue, flopping $3.01 to $56.24 on a volume of 3.5 million shares. Devaluations were the norm for the remaining heavyweights: Cameco tanked $1.59 to $28.40; Inco sank 57 to $26.01; Falconbridge fell 36 to $15.75; and Teck Cominco‘s B series slipped a nickel to $12.45.

Inmet Mining inked a multi-million-dollar deal to buy Outokumpu‘s Pyhasalmi copper-zinc mine in central Finland. Inmet was 2 lower, closing at $2.93.

Among juniors, Sulliden Exploration slipped 2 to 18 as it announced a suspension to drilling at the Mario base metal property in the Huancayo region of Peru. The junior has run out of cash, a situation many juniors have found themselves in this past year.

Golden Star Resources released a revised resource estimate for its Bogoso-Prestea property in Ghana. Measured and indicated resources stand at 25.2 million tonnes grading 3.34 grams gold per tonne. Golden Star climbed a dime to 96 on a small volume.

Namibian Minerals slipped 4 to 15, only to recoup 7 by presstime. The marine diamond miner rescheduled its senior debt and announced the resignation of President and CEO Alastair Holberton.