Broad market forges ahead, golds left behind

Sparked in part by a rally in Nortel Networks, buyers pushed the S&P/TSE composite index 243.28 points higher over the Jan. 14-20 report period. The bourse ended the period at 6,623.62, or 2.9% greater in value.

Gold took a severe tarnishing, dulling US$16.20 over the five trading days to finish at US$408.30 per oz. on the morning of Jan. 20. London metal traders were unkind also to silver, platinum and palladium.

Canada’s Big-3 all fell in value, with Placer Dome falling $1.10 to $21.49, Barrick Gold dropping 97 to $27.15, and Kinross Gold slipping 42 to $9.66. Also hard-hit was junior Southwestern Resources, which flopped $3.90 to finish the period at $36.10, though some bucked the trend, such as Eldorado Gold, which rose 15 to $4.20.

McWatters Mining was far and away the most active issue of the period, falling 4 on a volume of 115 million shares, or one-fifth the total number outstanding. On Jan. 15, the financially troubled junior filed for creditor protection and hired Prime Capital Finance of Australia to seek interested buyers for its suspended Sigma-Lamaque open-pit mine in Quebec. McWatters ended the period at 2.

First Quantum Minerals took the limelight in the base metal sector, announcing a significant cobalt discovery in Zambia. At the Lufua prospect, in Haut Katanga province, hole 65 assayed 2.07% copper and 0.608% cobalt over 69 metres, prompting the company to begin re-assaying all 43 reverse-circulation and 13 core holes drilled at the property so far. Also, the copper producer said it would not bid on the Neves Corvo copper mine in Portugal. First Quantum ended the period at $14.50, for a gain of $1.46.

Also making headlines was Falconbridge, which is in the midst of contract negotiations with its workforce in Sudbury. The union has accused the major of bad faith, raising the possibility that a strike will begin when the current contract ends on Jan. 31. Falco ended the period $3.31 stronger at $33.30.

Producer-hopeful Tahera was the next busiest issue, jumping 11 as 48 million shares changed hands. At the end of the previous period, the company announced the conclusion to public hearings on its proposed Jericho diamond mine in Nunavut. The Nunavut Impact Review Board must now prepare and submit its recommendations for federal approval, following which Tahera can begin the permitting and financing process. Tahera ended the period at 39, for a gain of 39% in value.

Caldera Resources added half a cent, or more than 3%, to make 15.5. On Jan. 16, Caldera said it had recovered three microdiamonds from the Yilgarn Craton project in the Earaheedy basin of Western Australia. The stones were picked from two small loam (permeable soil) samples associated with aeromagnetic anomalies, and they measure 0.2-0.3 mm in diameter. With an Aboriginal Site Clearance in hand, Caldera and partner SouthernEra Resources are planning a drill program to test up to 15 targets, including the two anomalies. SouthernEra ended at $5.95, up 39.