Winter chill sparks uranium miners

The Toronto Stock Exchange gained 112.07 points, or 1.2%, to end the Jan. 12-18 report period at 9,134.77. The diversified miners helped lead the way with a 9.11-point rise to 261.01, but it was the real estate sector, with a late surge, that stole the show, jumping more than 6% to 169 points even.

The golds ended the 5-day period 2.43 points ahead at 196.41, even as the yellow metal shed US$4.35 to close at US$422.25 per oz. in the afternoon in London on Jan. 18.

The mining guild’s biggest percentage gainer was Franc-Or Resources, which jumped 6, or 30%, to 26. Late last year, Franc-Or agreed to acquire up to a 90% stake in the Bugdainskoe polymetallic property in Southern Siberia from Priargunskaya Industrial Mining-Chemical Corp. in exchange for cash, shares and exploration expenditures. The acquisition would trigger an existing deal that would see Newmont pay $4 million for a 49.25% stake in Franc-Or, pending its acquisition of an acceptable gold property in Russia. Newmont will complete technical and legal due diligence at Bugdainskoe.

Hillsborough Resources continued its impressive ascent, tacking on another 45, or 27%, to make $2.09 despite some late period profit-taking. The coal miner recently agreed to buy eleven coal properties in northeastern British Columbia and has appointed David Fawcett as COO of its surface operations, which include the metallurgical, pulverized coal injection, and thermal coal prospects in the western province. Paul Krivokuca will head up underground operations, including the Quinsam mine in Campbell River, the Crossville mine in Tennessee, and underground projects in northeastern British Columbia.

Not to be outshone, Constellation Copper climbed 14, or 21%, to 81, after reporting some wide swaths of high-grade copper and zinc mineralization from its Terrazas property, 40 km north of Chihuahua, Mexico.

Shares in Nevsun Resources rebounded from their recent woes, gaining 46 to reach $3.12. The shares rebounded after the Eritrean government lifted its ban on exploration by foreign mining companies. But before it did, the government changed its mining laws to allow it to buy up to a 30% stake in mining projects, compared with the previous limit of 20%.

Canada’s uranium miners heated up, thanks to the colder temperatures across the U.S. northeast. UEX led the way, advancing 47, or 20%, to $2.79; market leader Cameco gained $1.38 to settle at $42 even; Denison Mines ended $1.40 richer at $15; and International Uranium rose 15 to $4.70.

News that copper grades in the Kulumaziba coarse tailings deposit in the Democratic Republic of Congo are higher than previously thought sent Anvil Mining to its highest level since it gained a listing on the TSX in June. The issue ended a quarter better at $7.25. Anvil can acquire a 70% stake in the copper-cobalt project.