Resource sector leads the charge

The Toronto Stock Exchange’s energy index powered the way, gaining 4.7% to reach 186.01 points by the end of the Sept. 15-21 report period, as oil prices rose to month-long highs on supply concerns south of the border. The golds chipped in with a 3.4% rise to 200.77 points as the yellow metal added another US$4.05 to reach US$408.50 per oz. in the afternoon in London on Sept. 21. The diversified miners rose 3.7% to 236.8 points, with most of the base metals making gains. In the end, the S&P TSX composite index was a full 2% higher at 8,642.93.

River Gold Mines was dragged into the news as the Ontario Securities Commission issued President Murray Pollitt a notice of hearing over allegations he violated the province’s Securities Act. The allegations relate to Pollitt’s position as an officer and director of Pollitt & Co. The issue slipped a penny to $2.05.

Uranium explorer Southern Cross Resources experienced a high volume of trading, with more than 15 million shares rebounding to the tune of 9 to reach $1.39. The shares had taken a big hit during the previous report period after the company reported that drill results from the Brooks Dam project in southern Australia did not justify additional work.

Continuing with the bad news, Reuters reports that despite meeting Eritrea’s mines minister, Nevsun Resources still does not know why it was ordered to halt operations in the East African country. Nevsun recently completed a drilling campaign on its Bisha project in Eritrea. Shares slid a penny to $2.20. Fellow miner Northern Mining managed to scrape together 2.5 to make 42.5. The company operates in Eritrea via a 75%-owned subsidiary, which in turn owns four exploration licences.

Shares in First Nickel shot up 8, or about 17%, to 56, after the company tabled some impressive nickel, platinum, and palladium values from its Dundonald nickel property, 60 km east of Timmins, Ont.

Others advancing on drill results were: Rio Narcea Gold Mines, up 16 to $2.77; Desert Sun Mining, which added 8 to reach $1.28; International Uranium, 12 higher to $4.29; Cross Lake Minerals, which rose half a penny to 15; and NovaGold Resources, which ended 46 to the good at $8.25.

Among the majors, Alcan says its plan to spin off its rolled-products business is still on track for completion by year-end. The company says it is reviewing several unsolicited inquiries from interested parties. The spinoff will include all the rolled product businesses held by Alcan prior to its acquisition of Pechiney; the move is required under antitrust laws in the U.S. and Europe. Alcan’s share price rose $1.99 to $58.54.

Meanwhile, Inco recently said it was optimistic it would give the go-ahead next month to its mothballed Goro nickel-laterite project in the French Pacific territory of New Caledonia. A review of the 85%-owned project has managed to lower capital costs and raise nickel and cobalt production rates. Inco’s stock finished $1.26 firmer at $47.45.