Higher gold price sparks trading

The report period Sept. 22-28 saw the price of gold rise another US$3.20 to close at US$411.70 per oz. in the afternoon in London. In New York, oil prices rose above US$50 a barrel for the first time. The energy index was up 2% at 188.17 points. The gold index rose 9.5 points, or 4.7%, to close at 210.31 and the diversified metals and mining index was up by 8.8 points, or 3.7%, at 245.56 points. The S&P TSX composite index fell 26 points over the week to close at 8,617.21 points.

Bema Gold led the way in volume, trading 21.3 million shares. The stock rose 23%, or 74, to close at $3.93. Bema reported drill results from its Kupol project in eastern Russia, where crews intersected a new vein with a true width of 20 metres.

Southern Platinum ranked second in volume, closing up 20, or 11.4%, at $1.96 as 18 million shares changed hands. The gold and platinum interests of SouthernEra Diamonds were recently transferred to Southern Platinum.

Southern Cross traded 17.6 million shares and fell 2.9%, or 4, to close at $1.35. The company says it plans to sell shares for gross proceeds of $1.2 million, which it will use to finance the Athabasca Basin project, a joint venture with Pitchstone Exploration.

Jaguar Nickel rose 63.8%, or 23, to close at 59 on a volume of 6.2 million shares. In a second pilot test of an atmospheric chloride leach process, nickel and cobalt extractions averaged 87% and 85% from samples that graded 1.3-1.4% nickel, 0.03-0.05% cobalt, 21-25% iron, and 6.5-7.6% magnesium.

Queenstake Resources rose 22.6%, or 12, on a volume of 17 million shares to close at 65. Investors were responding to drill results from several deposits that make up the Jerritt Canyon mine property in Nevada. Numerous intercepts wider than 3 metres averaged greater than 8.6 grams gold per tonne.

UEX was up 29.3%, or 59, to close at $2.60 on a volume of 7.58 million shares. There was no news to account for the rise.

Glencairn Gold rose 26.5%, or 13, to close at 62 on a volume of 6.3 million shares. The company reported drill results from the recently discovered Victoria zone, part of the Limon mine concession in Nicaragua. One hole intersected 16.5 grams gold per tonne over 36 metres; it is the westernmost of any hole drilled on the zone. Thirty of the 38 core samples taken from this section graded greater than 5 grams gold per tonne (21 of 38 samples assayed greater than 10 grams gold per tonne).

Guyana Goldfields surged ahead, gaining 37.7%, or 85, to close at $3.10 on a volume of just over 1 million shares. Drilling at the Aurora property in Guyana returned 284 metres grading 1.53 grams gold per tonne.

Semafo rose 24% on Sept. 28 following the first gold pour at the Samira Hill mine in Niger. The stock closed at 89 after more than 500,000 shares changed hands. Gold production in the first year is pegged at 135,000 oz.

TVI Pacific shot up 28%, or 3, on Sept. 28, to close at 16 with 4.8 million shares trading hands. There was no news to account for the action.