Southern Peru, Peabody ten-baggers

With metal prices holding firm over the report period ended Feb. 6, much of the action in mining stocks centred around the stories of individual companies.

Peruvian copper giant Southern Peru Copper made a big move, rising US$9.12 to an all-time high of US$91.15 on Feb. 6. The company traded around US$9 just after 9/11.

Another giant, coal miner Peabody Energy, has boasted a similar ten-fold increase since late 2001, and similarly posted a record high of US$105 per share over the report period before pulling back to US$103.77.

Among the juniors, Silverado Gold Mines had a nice little run-up to US21, up US14 on the week, putting the company at the top of the most-active and greatest-percentage-gainer lists. On Feb. 6, Silverado announced it had encountered an unspecified amount of gold at its Nolan alluvial gold property, 280 miles north of Fairbanks, Alaska.

Another micro-cap in play was Vancouver-based Douglas Lake Minerals, which popped up 62% to US$2.35. The Laurence Stephenson-led company, which has no Canadian listing, has acquired rights to four gold properties in Tanzania, and intends to start exploring them, beginning with a geophysical survey.

Vancouver-based junior Brookmount Explorations was another big mover this week, but in the wrong direction, falling 47% to US43. At period’s end, Brookmount signed a letter of intent to buy 100% of 722161 BC Ltd., which owns a 56% interest in 45 claims called the Rock Creek property, situated 10 km southeast of Rock Creek, B.C., in the Greenwood mining division. The junior already has its Mercedes 100 gold project in central Peru, in the vicinity of Arequipa.