Toronto Stock Exchange – May 26 -June 1

The S&P/TSX composite index continued its strong run, gaining nearly 100 points for the May 26-June 1 reporting period. The index’s strength was bolstered by the financial sector, where quarterly earnings from Canada’s big six banks — while still reporting some losses — managed to beat the Street’s expectations.

The mineral sector continued to play its part as well, as investors looked to get ahead of anticipated inflation. The price of gold went up US$27 to US$982 per oz., although the gain wasn’t yet translated into the Global Gold index. The index actually fell 2 points to 331.98. That wasn’t the case for diversified miners, however. Higher copper, aluminum, nickel, tin, lead and zinc prices carried the Capped Metals and Mining index up 65 points to 601.38.

The big acquisition story for the period involved gold in the Democratic Republic of the Congo (DRC). Lukas Lundin, chairman of Red Back Mining, further solidified his family’s interest in the country with a takeover offer for Moto Goldmines. The Lundins have long had mineral interests in the DRC and currently have a significant stake in the Tenke Fungurume copper project in the country’s southern copper belt region. If its all-share, $513-million offer is approved by Moto’s shareholders, Red Back will have one of sub-Saharan Africa’s richest gold deposits. The project already hosts more than 5 million oz. in reserves.

Zazu Metals was the junior star for the period. The Vancouver-based company saw its share price balloon by 138% to finish at 31¢ after releasing a resource estimate for its Lik zinc, lead and silver deposit. Lik lies 22 km from Teck’s Red Dog mine in northwestern Alaska, and holds indicated resources of 18.73 million tonnes averaging 8.08% zinc, 2.62% lead and 52.8 grams silver per tonne.

Political worries in Kazakhstan hit Uranium One during the period as the company lost 40% of its share value to finish at $2.11. The fall came after the government arrested the head of the country’s state-owned uranium mining company, Kazatomprom, for allegedly illegally selling stakes in uranium deposits. Apparently one of the questionable deals was Uranium One’s purchase of 30% of the Kharasan project. Uranium One said it had requested a meeting with the new Kazatomprom officials and stressed that it had paid full value for its assets in Kazakhstan.

First Quantum Minerals partook in the renewed interest in base metals. The miner climbed $2.60 to $51.17. During the period, the company announced it was raising US$500 million by offering convertible debt. The bonds can be converted to 8.87 million shares, at a strike price of US$56.39 and pay an interest rate of 6%. The company said the money will allow it to repay short-term debt, continue organic growth, or fund an acquisition should an opportunity present itself.

TSX most active issues
		VOLUME	WEEK
		(000s)	HIGH	LOW	CLOSE	CHANGE
Uranium One	UUU	130103	3.46	1.94	2.11	-1.39
Teck B	TCKB	43496	18.84	15.28	18.65	+ 2.85
Yamana Gold	YRI	33240	13.01	11.46	12.45	+ 0.60
Denison Mines	DML	30744	2.22	1.98	2.13	-0.26
Redcorp Vent	RDV	28847	0.01	0.01	0.01	0.00
Capstone Mng	CS	27475	2.57	2.12	2.52	+ 0.32
Eastern Platin	ELR	25654	0.61	0.44	0.58	+ 0.11
Lundin Mng	LUN	23671	2.90	2.46	2.86	+ 0.26
Breakwater Res	BWR	23282	0.32	0.27	0.31	+ 0.04
Barrick Gold	ABX	22964	42.85	39.98	40.41	-2.16

TSX greatest percentage change
		VOLUME	WEEK
		(000s)	HIGH	LOW	CLOSE	CHANGE
Zazu Metals	ZAZ	5855	0.45	0.12	0.31	+138.4
Linear Metals	LRM	928	0.14	0.07	0.12	+ 71.4
Firstgold	FGD	2419	0.09	0.05	0.08	+ 60.0
North Am En Pa	NOA	135	8.89	5.43	8.40	+ 52.7
Moto Gold Mine	MGL	6325	5.00	3.00	4.65	+ 52.4
Treasury Metal	TML	779	0.32	0.17	0.27	+ 50.0
BRC DiamondCr	BCD	530	0.14	0.06	0.09	+ 50.0
New Dawn Mng	ND	135	1.44	0.79	1.25	+ 48.8
Aura Mnls	ORA	1945	0.39	0.25	0.38	+ 46.1
Arehada Mining	AHD	103	0.10	0.08	0.10	+ 42.8
Uranium One	UUU	130103	3.46	1.94	2.11	-39.7
Richview Res	RVR	275	0.03	0.02	0.02	-33.3
Etruscan Res	EET	1907	0.40	0.29	0.29	-29.2
Zincore Mtls	ZNC	934	0.14	0.10	0.10	-28.5
Grandview Gld	GVX	2031	0.09	0.05	0.06	-25.0
Avnel Gold	AVK	82	0.15	0.10	0.10	-23.0
Nuinsco Res	NWI	1596	0.06	0.05	0.05	-16.6
VG Gold	VG	109	0.10	0.08	0.10	-16.6
Ontex Res	ONT	408	0.25	0.19	0.22	-15.3
Revett Mnls	RVM	151	0.19	0.13	0.17	-15.0

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TSX greatest value change
WEEK
		VOLUME	CLOSE	CHANGE
Inmet Mining	IMN	2558107	46.59	+ 4.19
Major Drilling	MDI	2006772	18.88	+ 3.48
North Am En Pa	NOA	135465	8.40	+ 2.90
Teck B	TCKB	43496273	18.65	+ 2.85
Cameco Corp	CCO	6644189	31.70	+ 2.67
First Quantum	FM	5214093	51.17	+ 2.60
Silver Std Res	SSO	970946	26.53	+ 1.78
Moto Gold Mine	MGL	6324967	4.65	+ 1.60
Agnico-Eagle	AEM	4725620	65.62	+ 1.47
Teck A	TCKA	26103	20.39	+ 1.40
Agrium	AGU	5705934	54.24	-2.58
Central Gold-T	GTU_U	67440	42.60	-2.40
IShCOMEXGTr	IGT	40458	104.62	-2.38
Barrick Gold	ABX	22963855	40.41	-2.16
Potash Cp Sask	POT	5442073	127.46	-1.84
Uranium One	UUU	130102729	2.11	-1.39
Seabridge Gold	SEA	120609	31.12	-1.20
Red Back Mng	RBI	11690297	9.80	-0.75
Newmont Mng	NMC	59428	52.26	-0.52
Minefinders	MFL	1178751	9.98	-0.50