MINING MARKETS & INVESTMENT NEWS – EASTERN MARKETS — TSE rallies while producers ride out rough week

Investor optimism continued on the Toronto Stock Exchange, with the broad market jumping 232.49 points during the Nov. 18-24 report period, to end at 6,570.27.

The TSE’s precious metals and minerals sub-group hovered above the previous period’s close, finishing at 6,735.2. Gold was fixed at US$296.20 per oz. on the morning of Nov. 25, having gained $1.80; silver was down 4 cents to US$4.92 per oz.; while platinum slipped $3.50 to US$345.50 per oz.

Among producers of the yellow metal, Barrick Gold climbed $1.10 to $33. Going the other direction were: Placer Dome, down 10 cents to $24.50; Kinross Gold, down 12 cents to $4.25; and TVX Gold, off 1 cents to $3.14.

Greenstone Resources had 37 cents chipped from its value, ending the period at $1.78. Investors have yet to learn what, if any, impact Hurricane Mitch has had on the company’s Latin American gold projects. Greenstone has seen its share price dwindle this year from an April high of $10.15.

Junior producers also suffered, with Black Hawk Mining dropping 2 cents to 21 cents on news of a drop in third-quarter earnings. Similarly, Geomaque Exploration dipped 5 cents to $1.65 on similar quarterly results, despite having surpassed production levels of the previous two quarters.

Gold and uranium producer Cameco was down 85 cents to $31. The company is decreasing output at the Key Lake and Rabbit Lake uranium mines in Saskatchewan to offset low metal prices and ensure a smooth transition to the future McArthur River and Cigar Lake mines.

The TSE’s metals and minerals sub-index dropped 21.21 points to 3,431.48. Nickel saw a 4-week fury of strength end, declining 4 cents to US$1.85 per lb. Surprisingly, Inco didn’t follow suit but ascended 35 cents to $19.10.

Noranda was down 75 cents to $23.90, stripping gains made in the previous period from news that partial funding for the Antamina copper-zinc project in Peru has been secured. Ironically, partner Rio Algom, which fell in value on the news, gained 20 cents, ending the report period at $22.50. The remaining partner, Teck, wasn’t so lucky as its B securities fell once again.

In eastern junior markets, Viceroy Resources withered 76 cents to $2.44. Market discouragement arose from disappointing drill results from the company’s Gualcamayo property in Argentina. Though the grades were lower than those previously reported from surface sampling, the company remains optimistic.

Similar market sentiment befell Aber Resources, which slipped 60 cents to $7.40. The company’s partner at the Diavik Diamond project in the Northwest Territories is postponing its final feasibility study until next year.