MINING MARKETS & INVESTMENT NEWS – EASTERN MARKETS — Junior resource stocks enliven lacklustre market

The Toronto Stock Exchange 300 index gained a modest 20.35 points in the report period Jan. 27-Feb. 2 to close the week at 6,683.78.

Buoyed by stronger gold and silver prices, the gold and precious metals sub-group jumped 119.1 points to 5,846.72. The yellow metal was valued at US$287.55 per oz. on the morning of Feb. 3, whereas silver was pegged at US$5.54 per oz.

Despite announcing improvements at its operations, Kinross Gold fell 5 cents to $3.35. In 1998, the major increased its gold-equivalent output by 75 cents while significantly lowering the cash costs at its various mines, including those gained from a merger with Amax Gold last June.

Also down were: Franco-Nevada Mining, off 40 cents to $29.20; Euro-Nevada Mining, off 75 cents to $23.75; and TVX Gold, off 13 cents to $2.31. Bucking the trend were Barrick Gold, up $1.40 to $29.90, and Placer Dome, up $1.05 to $17.80.

The metals and minerals sub-index ended the period at 2,944.24, or 146.26 points lighter than in the previous week. Producers suffering setbacks included: Falconbrige, off 90 cents at $15.35; Noranda, off 55 cents at $15.90; and Rio Algom, off 75 cents at $15.05.

Boliden continued to skate on thin ice, dropping 22 cents to $2. The company’s latest woes are due to its having offered $233 million worth of convertible preferred shares to shareholders, proceeds from which will go towards paying down debt and providing working capital.

The rather dull report period was enlivened by junior stocks, especially Nuinsco Resources, which climbed another 8 cents to $2.11. This represents a six-fold increase since mid-January, when the junior announced the intersection of nickel-copper mineralization at its Lac Rocher property in northern Quebec. First Marathon Securities has since given the discovery its stamp of approval by subscribing for 2.5 million Nuinsco warrants at $2 a piece, with the option of placing another 2.5 million.

Romarco Minerals ended the period at $1.75, marking a 19 cents jump in the past two consecutive periods. The Nevada explorer released results from 12 holes drilled at the Jake Creek gold property, where it is earning a 51% interest from Echo Bay Mines.

Among diamond stocks, Namibian Minerals was up 45 cents to $2.96 on better-than-expected production at its Luderitz Bay marine concession off the coast off Namibia. Record production of 26,000 carats was achieved in December and into January.

Going the opposite way was Aber Resources, which fell $1.15 to $10.40. The company announced a change in the proposed mining sequence at its jointly owned Diavik diamond project in the Northwest Territories.