Placer Dome falls as it extends for Australian producer

With help from resource stocks, the Toronto Stock Exchange Composite index climbed 90.72 points over the Sept. 4-10 report period to end the week at 6,544.22.

Bolstered by higher bullion prices, the gold subgroup ran up 4.27 points to 194.49. The London fix was set at US$315.50 per oz. on the morning of Sept. 11, for a gain of US$2.80 over the period.

Barrick Gold was up 62 at $25.98, while Kinross Gold gained 30 to $3.56. The latter was also the most active resource issue, with 47 million of its shares traded.

Placer Dome was among the few to fall in market value, no doubt reflecting its unwillingness to concede defeat in the quest for AurionGold. The major, which now owns 37% of the Australian producer, has extended its bid until Sept. 20 — its sixth extension since announcing the bid in the spring. Placer closed down 24 at $15.94.

Goldcorp jumped 90 to $17.65 as it released more impressive exploration results from the Red Lake mine in northwestern Ontario. Recent drilling cut jewelry box grades at 6,850 ft. below surface, making this the deepest and richest gold zone yet found at the mine.

Palladium miner North American Palladium rose 29 to $8.74 on the back of stronger metal prices. Following that, on Sept. 11, after the market closed, the company announced the resignation of Keith Minty as its chief executive officer. Minty, who oversaw the $236-million expansion of the Lac des les mill in Thunder Bay, Ontario, has been replaced by Chairman Michael Amsden. A permanent replacement is being sought.

London metal traders showed an unusual display of support for base metals, pushing them all higher. Nickel led the pack with a US21-rise, followed by a surprising US3-gain in copper. Zinc jumped US2 and lead, a penny.

Nevertheless, the major producers were mixed: Inco ascended 99 to $28.14; Falconbridge slipped 39 to $16; Teck Cominco B-series climbed 17 to $10.30; and Noranda fell 26 to $16.04. Falconbridge began contract talks with its union at the Kidd Creek mine in Timmins, Ont. The existing deal expires on Sept. 30.

Overall, the Diversified Metals and Mining index was up slightly, at 116.42 points.

Junior NovaGold Resources slipped 37 to $5.50 after reporting it will attempt to raise $10 million by privately placing 2 million units at $5.10 apiece. A few days earlier, the company said it had discovered new mineralization in a number of zones near the main Acma deposit at its Donlin Creek project in Alaska. The discoveries are expected to augment the property’s known resource and reduce projected stripping ratios.

Metallica Resources remained unchanged at $1.50 despite announcing that its partner, Noranda, had added 13% more tonnes to the La Fortuna base metals deposit in Chile. The major can earn a 70% stake in the deposit and surrounding property by spending $10 million on exploration, completing a bankable feasibility study and paying $10 million in cash.