Toronto Stock Exchange (February 14, 2011)

The TSX composite index gained 255 points for the Jan. 31-Feb. 4 period finishing at 13,791.85 as Canadian economic indicators bolstered investor confidence.

Chief among the good signs was news that real gross domestic product rose 0.4% last November and that economic growth in the fourth quarter of 2010 met the Bank of Canada’s forecast of 2.3%.

The other big news on the national economic front was employment jumping to begin the year, as 69,000 new jobs were created in January. 

The price of gold showed renewed signs of life as it was up US$22 to US$1,355 per oz. sending the Global Gold index climbing 14 points to 385.85. 

The Capped Metals & Mining index moved 66 points higher to 1,566.90 as the prices for copper, aluminum, nickel, lead and zinc all made gains while the price for tin continued on its historic run, finishing the period at US$14.01 per lb.

Just a month after releasing an interim resource estimate for its Long Canyon gold project, Fronteer Gold looks set to be acquired by Newmont Mining. The offer from Newmont would see Fronteer Gold’s shareholders get $14 in cash and one share in a new company called Pilot Gold for each Fronteer share. Fronteer’s latest resource estimate put 1.4 million oz. gold in the measured and indicated resources and another 800,000 oz. in the inferred category. Word of the deal sent the company’s shares up 44% to $14.33. 

The initial drill results from Talon Metals‘ Trairao iron project in Brazil’s Para state came in and they didn’t disappoint. The company’s shares were up 32% to $2.12 for the period after releasing many wide and high-grade intercepts. Some of the most impressive included 50 metres grading 41.07% iron and 46 metres of 48.66% iron. 

The Lundin legacy is coming to Zazu Metals, and the market signaled its approval. Zazu was up 32% to $1.39 for the week in which it announced that Zebra Holdings – a company owned by a trust settled by the late Adolf Lundin – was taking a 19.9% stake in the company by buying 8.8 million Zazu shares for 90¢ per share. The private placement will raise close to $8 million for Zazu, which it says will go towards completing a feasibility study on its Lik South deposit in northwest Alaska. Teck Resources is Zazu’s joint-venture partner at the polymetallic project, with each company holding a 50% stake. 

And Crystallex International may finally have been put out of its misery in its dogged attempt to mine the Las Cristinas gold project in Venezuela. The company said it received a letter from the government terminating its mining contract for Las Cristinas. The letter said the termination was due to a lack of activity at the project and “for reasons of opportunity and convenience.” Crystallex shares were down 15% to 22¢.

TSX most active issues

VOLUMEWEEK

(000s)HIGHLOWCLOSECHANGE

Fronteer GoldFRG5555314.449.7614.33+4.40

Eastern PlatinELR536121.811.571.78+0.15

Uranium OneUUU420127.026.086.43+0.40

Cons Thomp IrnCLM2710017.3017.1717.18-0.07

Kinross GoldK2379517.1916.5916.75-0.24

Denison MinesDML196234.033.413.87+0.49

Centamin EgyptCEE185122.432.142.30+0.09

Cline MngCMK173744.673.984.51+0.57

Equinox MinlsEQN162366.825.866.63+0.78

Romarco MnrlsR161232.282.002.20+0.08

TSX greatest percentage change

VOLUMEWEEK

(000s)HIGHLOWCLOSECHANGE

Fronteer GoldFRG5555314.449.7614.33+44.3

Zincore MtlsZNC22560.790.550.74+37.0

Velocity MinlsVLC11870.150.090.15+36.3

Diamond FieldsDFI15430.440.270.42+35.4

Talon MetalsTLO9932.121.512.12+32.5

Zazu MetalsZAZ33941.550.871.39+32.3

Pretium ResPVG13788.006.298.00+28.0

Claude ResCRJ40602.511.872.50+26.9

Tiger ResTGS21150.580.440.55+25.0

Uranerz EnergyURZ11525.714.595.68+24.2

Homeland EnrgyHEG115310.090.060.07-22.2

Crystallex IntKRY20780.270.220.23-14.8

Grandview GldGVX4780.070.060.07-12.5

Canarc ResCCM24000.270.190.22-12.0

US Gold Can AcUXE127.086.076.72-11.8

Jaguar MngJAG24676.205.445.52-10.8

Khan ResKRI28090.670.540.56-9.6

Globex MngGMX1742.652.352.40-9.0

Magma MetalsMMW9190.530.470.50-7.4

TimmincoTIM35260.580.500.51-7.2

TSX greatest value change

WEEK

VOLUMECLOSECHANGE

First QuantumFM3633751129.10+14.61

Potash Cp SaskPOT3650029179.16+5.17

Fronteer GoldFRG5555312314.33+4.40

Detour GoldDGC713114330.90+4.32

Inmet MiningIMN142564079.11+4.11

Teck BTCKB1611276561.76+3.90

Teck ATCKA1457962.19+3.36

Agnico-EagleAEM402636472.04+2.88

Major DrillingMDI38295745.23+2.64

Labdr I-Ore RoLIF_U29190371.90+2.62

US Gold Can AcUXE121406.72-0.90

Jaguar MngJAG24666705.52-0.67

Horizns G BearHGD407973610.58-0.59

Guyana GldfldsGUY20026308.63-0.51

North Am En PaNOA7196411.10-0.44

CIC EnergyELC14675846.50-0.38

Globex MngGMX1741402.40-0.24

Kinross GoldK2379461716.75-0.24

SemafoSMF985205910.28-0.22

Northland ResNAU4704513.00-0.21