MINING MARKETS & INVESTMENT NEWS – EASTERN MARKETS — Deadly copper price snuffs out Highland Valley mine

The biggest story during the report period ended Jan. 19 was the announcement that the low-grade, high-tonnage Highland Valley copper mine in British Columbia would close in May.

The decision was made in light of continued weakness in copper prices, which ended the week at just US65 cents per lb. on the London spot market. Highland Valley’s owners all showed declines through the week: Cominco lost $1.10, falling to $18.30; Rio Algom slipped 30 cents to $17.20; and Teck’s B shares were down $1.60 to $11.

Nickel prices fell 13 cents to US$1.96 per lb., wiping out nearly half of the previous week’s meteoric rise. Canadian nickel miners erased most of last week’s gains: Inco lost 70 cents to hit $18.40; Falconbridge slumped $1.25 to $17.40; and Sherritt International shed 18 cents to settle at $3.01.

The precious metals fared no better, with silver slipping 6 cents to US$5.13 per oz. and gold dropping $2.30 to stagger in at US$285.90 per oz. on the London morning fix of Jan. 20.

Gold’s retreat pulled down Canada’s major miners in that sector: Volume and value leader Barrick Gold was off $1.05 to $30.15; Placer Dome sunk 70 cents to $18.05; Kinross Gold was down 5 cents to hit $3.55; TVX Gold lost 6 cents to reach $2.73; Cambior slipped 15 cents to $8; Franco-Nevada Mining lost $1 to drop to $28.75; and Euro-Nevada Mining shed 20 cents to reach $24.60.

Despite the gloomy mood of the metals markets, several juniors showed major gains, thanks to the success of ongoing exploration programs.

Black Hawk Mining rose 5 cents to 24 cents on news that the junior, together with Vancouver-listed Silver Standard Resources, had intersected high-grade gold in a drilling program at its Manantial Espejo project in Argentina. The best result was from hole 116, which cut 25.52 grams gold at a shallow depth over a true width of 10.6 metres.

Toronto-based junior Band-Ore Resources rocketed 26 cents to 52 cents on the announcement that it had optioned a gold-silver discovery made by prospectors Stephen and Michael Stares on the western shore of Cunniah Lake, near Thunder Bay, Ont. Band-Ore plans to carry out 1,500 metres of drilling in February.

Another active junior was Toronto-based Nuinsco Resources, which climbed 15 cents to 51 cents in advance of an announcement that it had intersected massive sulphides during drilling at the Lac Rocher property, northeast of Matagami, Que.

Montreal-listed gem explorer Anglo Swiss Resources shot up 37 cents to 65 cents. The Vancouver-based junior continues to test the quality of iolite from its property in B.C. (Iolite is a transparent form of the silicate mineral cordierite.)