MINING MARKETS & INVESTMENT NEWS – EASTERN MARKETS — Golds gain ground in quiet market

The Toronto Stock Exchange 300 index gained 45.21 points during the July 2-7 report period to finish at 7,454.60. While the metals and minerals sub-index fell 1.2% to 3,534.02, the gold and precious metals sub-group climbed 3% to 6,141.25.

Base metals were once again devalued on the London Metals Exchange: nickel dropped a nickel to US$1.89 per lb., while lead and zinc each lost a penny.

Zinc on the other hand edged ahead 1 cents to US46 cents per lb. In the precious metals sector, gold fell $1.40 to US$294.35 per oz. and silver dropped 3 cents to US$5.33 per oz. Like zinc, platinum gained some luster, rising $23 to US$375 per oz.

Among the base metal stocks, Inco was the most heavily traded, with about 3.6 million shares moving. The big nickel miner lost 90 cents to close at $19.15. Cross-town rival Falconbridge slid $1.25 to finish at $16.50.

Noranda was down 20 cents to close at $25.20 and Cameco was up a buck at $42.

The golds were mixed but broadly higher. Kinross Gold was the most active, falling a dime to $4.85 on volume of 2.1 million shares. Barrick Gold was up 10 cents at $28.10 and Placer Dome added 15 cents to finish at $17.25. Teck B-series shares were off 95 cents at $15.10, but the royalty companies did well: Franco-Nevada Mining was $1.95 better at $31.10 and Euro-Nevada Mining added 35 cents for a close of $20.40.

Cambior closed at $8.80 and Agnico-Eagle Mines at $8.30, for identical 15 cents gains, and Rayrock Yellowknife Mines fell 75 cents to close at $5.50.

On the Toronto junior board, Treminco Resources was up 15 cents to 45 cents, making for an almost complete recovery from a 20 cents loss taken in the previous period. The junior recently raised $600,000 in a private placement and is using the funds to complete a due diligence review of the Elkhorn gold project in Montana, which the company can acquire from Newmont Gold for shares and cash payments.

Troubled Cornucopia Resources fell 2 cents to close at 6 cents. It is still negotiating with creditors for a reorganization that might preserve some equity in the company.

On the Montreal Exchange, mine waste reprocessor Itec-Mineral was up 17 cents to 50 cents. The company is currently working on the Gold Hill site in Colorado.