Miners recover as metals bounce

Metal prices rebounded across the board during the Sept. 8-14 report period; accordingly, the Toronto Stock Exchange’s gold index rose 5.26 points to end at 195.96. The yellow regained some shine, not to mention US$8.95 to make US$405.25 per oz. by period’s end in New York. Similarly, the diversified miners grabbed 4.73 points to reach 225.9 points. Overall, the S&P TSX composite index added another 137.79 points to make 8,492.59.

A late-period dive erased earlier gains by Thistle Mining; the South African miner shot to the top of the most-active trader list with nearly 50 million shares winding their way a penny lower to 9. Recent drilling on the Minkie block of the Eldorado Massives zone at the company’s President Steyn gold mine in South Africa returned a true width of about 5.5 metres running 25 grams gold per tonne. Channel sampling on the zone’s Big Bertha block yielded up to 91.8 grams gold over 1.6 metres. Development has begun at Big Bertha; commercial production is expected to crank up next June.

Also on the slide was Cambior, which said it would lay off 130 employees from its Doyon gold mine in northwestern Quebec. A rock fall at the mine last May cut off some producing areas of the mine, and sent costs higher. The company plans to reduce the mining rate and focus on higher-grade areas. The issue fell 19, or 5%, to $3.64.

Eldorado Gold was recently awarded all required construction permits and approvals for its Kisladag gold project in western Turkey. Eldorado shot up 73, or 22.5%, to $3.97.

Not to be outdone, Guyana Goldfields soared 53, or 30.5%, to a new 52-week high of $2.27. The latest round of drilling from its Aurora property in Guyana has returned some wide swaths of shallow gold mineralization, including 171 metres of 2.87 grams gold per tonne from surface at the easterly Rory’s Knoll area.

Miramar Mining‘s grabbed a dime to reach $1.28. Summer drilling on the Naartok zone at the Hope Bay gold project near Bathurst Inlet in Nunavut has expanded known mineralized zones. Resources at Naartok total 1.7 million tonnes grading 5.4 grams gold.

Gulf International Minerals saw more action than usual, and jumped 4 to 18. A forensic audit of the company by Deloitte & Touche concludes that, owing to a lack of corporate governance, the junior mining company was unaware of alleged wrongdoing by its former chief executive officer Alastair Ralston-Saul. The Globe & Mail reports that Ralston-Saul said that the RCMP has dropped its probe of the company. The Toronto Stock Exchange has also completed its review, and concludes that the company meets the requirements for continued listing.

Western Silver and NovaGold Resources both received a late-period shot in the arm; the issues will be added to the S&P TSX composite index after the close of business on Sept. 17. NovaGold will also join the Capped Gold Index, and Western Silver will be added to the S&P TSX Small Cap Index. Western Silver advanced 85 to $10.45, while NovaGold finished 45 higher at $8.10.