MINING MARKETS & INVESTMENT NEWS — EASTERN MARKETS — Mining stocks slump as eastern markets get thumped –Campbell Resources heavily traded as junior seeks gold acquisitions

The big story of the Aug. 5-11 report period was the global market slump beginning Aug. 10. Fueling the bearish sentiments were continued worries about the economic climate in Asia, particularly Japan’s seeming inability to tackle its problems head-on.

As a result, the yen plummeted to an 8-year low against the U.S. dollar. In addition, the Chinese yuan and Hong Kong dollar were under siege, although China’s central bank said once again it would not cave in and devalue its currency. Added to the mix were rumors that Indonesia is trying to renegotiate its debt.

The Toronto Stock Exchange had a broad range during the report period, with the TSE 300 composite index dropping a whopping 5.8%, to 6,312.92 points. The metals and minerals sub-index sunk 3.6%, to 2,995.05 points, while the gold and precious metals sub-index fared even worse; it dropped 7.9%, to 4,967.25 points.

Gold prices on the LME plummeted US$3.35 to US$285.50 during the morning fix of Aug. 12. Along for the ride were most of Canada’s major gold miners: Barrick Gold slipped 85 cents to $24.10; Placer Dome was down 35 cents to $15.35; Kinross Gold dropped 38 cents to $3.55; TVX Gold shed 50 cents to $2.85; and Cambior lost 60 cents to hit $6.90.

Base metal prices were off a penny or two for the week, with most miners down for the period: Noranda dropped $1.05 to $21.40; Teck lost 15 cents to $12.75; Boliden continued its dramatic freefall, plunging $1.25 to just $5.10; Inco lost a nickel at $15.60; Falconbridge held steady at $16. Only Rio Algom bucked the gloomy trend, rising $1 to $21.50.

Cameco dropped $2.50 to $30 as the uranium miner completed its $489-million acquisition of Uranerz Exploration & Mining and Uranerz USA from their German parent, Uranerzbergbau. The deal gives Cameco additional interests in the Crow Butte, Key Lake and Rabbit Lake mines, as well as in the McArthur River project.

Campbell Resources dropped 8 cents to 40 cents on heavy trading. The Toronto-based junior has $37.5 million in cash, plus $11 million in other current assets. It’s also no secret that the company is looking for acquisitions, even in this depressed gold market.

Vancouver-based Treminco Resources signed a letter-of-intent with Nasdaq-listed Legend Resources for that company to acquire Minera Treminco de Mexico, whose principal asset is the El Magistral copper-gold property in Sinaloa state. Under the agreement, Legend can earn its interest by paying US$60,000 and issuing 200,000 shares. Treminco lost 5 cents, falling to 25 cents.

CDN-listed Banro Resource nosedived $2.90, to 85 cents, on news that the government of the Democratic Republic of Congo snatched its Sakima gold project following rebel incursions in the country. The company says the government’s move is illegal and will fight the decision through arbitration if necessary. With this latest insurrection threatening the fragile political climate in the Congo, other juniors involved in the country also posted major losses for the week: America Mineral Fields dropped $1.30 to $2 and Tenke Mining shed 84 cents to 65 cents.

Meridian Gold eased back 80 cents, to $4.80, following stratospheric highs in mid-July on positive production and exploration news.

Goldcorp dropped $1.40 to $5 in advance of the release of second quarter results, which included a small loss on revenues of $16.3 million.