Gold outshines the TSX

The Toronto Stock Exchange’s gold index mirrored the yellow metal’s performance during the Nov. 12-18 report period, ending with a surge to sit 9.01 points higher at a new year-high mark of 226.70.

Gold failed to test the US$400-per-oz. mark mid-period but did finish US$3.60 per oz. higher at US$393.30 per oz. in London. Nov. 18 saw bullion take another run at the psychological barrier, jumping US$5.90 to US$396.70 per oz. in New York. Overall, the TSX’s composite index finished off 59.91 points at 7,737.39.

Receiving a mid-period jolt was junior Asia Pacific Resources, which finished 7.5 higher at 16.5. The company has agreed, in principle, to form a joint venture with Chinese state-owned Enterprise Investment for the purpose of developing the Udon Thani potash deposit in Thailand. Asia Pacific owns a 90% interest in the project, and the deal includes long-term offtake commitments and US$300 million worth of financing required for initial capital costs. Udon Thani is envisaged as a 2-million-tonne-per-year mine.

Also in China, TVI Pacific has been granted a wholly foreign-owned enterprise certificate, which it says provides security for its Shuikoushan gold project in the south-central part of the country. It also allows TVI to acquire, own, and explore projects throughout China. TVI can also import any materials and equipment required for that exploration. The company recently raised $2 million for exploration via a bought deal with Haywood Securities. The issue shot up a nickel to 19.

Shares of Wheaton River Minerals climbed steadily to end 45 higher at a new 52-week high of $3.49. The mid-tier producer posted record third-quarter net earnings of $14.7 million, and anticipates additional production from its recently acquired Amapari mine in Brazil in mid-2005 and from the Los Filos mine in Mexico in 2006.

Queenstake Resources performed similarly, gaining 14 to approach its own year-high ending at 91. The shares were boosted by the latest batch of underground and surface drilling results from the recently acquired Jerritt Canyon mine in Nevada. The holes cut up to 0.94 oz. gold per ton outside the current reserve and resource area, but near current workings. Ore-grade mineralization was also intersected west of underground workings at the Murray mine.

Tahera advanced 3, to 26. The diamond explorer posted a narrower third-quarter loss of $437,000, compared with the year-ago loss of $448,000. Operating expenses increased by 1% and are expected to remain static during 2004. Tahera recently raised $8 million for exploration at the Jericho diamond project in Nunavut by selling 50 million units. Each unit comprises one share plus half a warrant; one warrant is good for one share at 22 apiece for three years. The company’s environmental impact statement regarding Jericho will face a final hearing by the Nunavut Impact Review Board in early December.