Toronto Stock Exchange (January 31, 2011)

The TSX composite index fell 169 points to finish the Jan 17-21 period at 13,258.57 as the Bank of Canada held the overnight rate steady at 1%.

In its outlook report, the bank pointed to the impact of a high Canadian dollar on exports and high household debt as the two key risks going forward. 

The Global Gold index continued to slide as it lost 6 points to end at 371.86. The index has fallen 12% since the beginning of the year, when it was in the 420-point range. The price of gold has fallen roughly US$62 in that time, and finished the week at US$1,343.50 per oz. 

The diversified miners have managed to hold value slightly better than their cousins in the gold sector. The Capped Metals & Mining index was off 79 points to 1,457.54. It began the year marginally higher at the 1,499-level. For the most recent period only the price of tin was higher, as the prices for copper, aluminum, nickel, zinc and lead all fell. 

Word from Iamgold on its exploration progress at the Kalana gold project in Mali, was a boon to Avnel Gold‘s share price. The company, which is joint-ventured with Iamgold on the project, saw its shares climb 44% to 55¢ apiece after Iamgold said it hit “significant gold mineralization” 3 km east of the high-grade Kalana underground mine.

The company plans to complete 34,500 metres of drilling this year as it looks to develop a resource estimate. Iamgold shares were up 9% to $18.69. 

Zazu Metals‘ ability to raise $2.25 million through a private placement was seen as good news by the market as the company’s shares climbed 36% to 72¢. The company is issuing 5 million shares at 45¢ each to raise the money, which it says will be used to advance its LIK deposit in Northern Alaska towards feasibility. 

The government of Papua New Guinea granted the world’s first deep-sea mining lease to Nautilus Minerals, and the news helped bolster the company’s shares by 27% to $2.80. The lease is for the Solwara 1 project in the Bismarck Sea, where the company plans to mine high-grade copper and gold deposits from the seafloor, at depths of about 1,600 metres. The company has everything but the financing now in place to advance the Solwara 1 project. 

More gold production in a high-price environment is generally well received, and Dynacor Gold Mines‘ latest news proved to be no exception. The company announced that it had doubled gold production at the custom mill in Peru to 10,478 oz. for the fourth quarter of 2010. That increase helped the company to surpass its target of 25,000 oz. for the year as the plant turned out 33,525 ounces of gold, which represents a 43% increase over total production from 2009. Dynacor shares were up 23% to $1.77 apiece. 

TSX most active issues

VOLUMEWEEK

(000s)HIGHLOWCLOSECHANGE

Eastern PlatinELR745511.931.671.72-0.19

Starfield ResSRU651140.190.100.12-0.01

Uranium OneUUU383245.945.305.69+0.26

Cons Thomp IrnCLM2456117.3917.2617.26-0.14

Kinross GoldK2296217.0916.4716.75+0.13

Lundin MngLUN198227.987.367.38-0.28

Equinox MinlsEQN189926.155.535.55-0.31

Rubicon MnrlsRMX166715.794.764.80-0.83

Rockwell DiamRDI165520.070.050.05-0.01

New GoldNGD154818.627.547.55-0.96

TSX greatest percentage change

VOLUMEWEEK

(000s)HIGHLOWCLOSECHANGE

Mediterrn ResMNR52340.140.090.14+55.5

Avnel GoldAVK3020.600.350.55+44.7

Zazu MetalsZAZ19810.740.500.72+35.8

Victory NickelNI112720.150.100.12+33.3

Nautilus MinlsNUS23412.992.262.80+27.2

Dynacor Gold MDNG7201.881.401.77+22.9

Karnalyte ResKRN86413.0010.5011.81+20.5

Nuinsco ResNWI75680.280.220.25+19.0

Western CopperWRN50214.403.303.80+16.2

Yorbeau Res AYRBA14810.230.190.23+15.0

Polar Star MngPSR6762.501.791.85-26.0

Crowflight MnlCML77440.070.050.05-16.6

Rockwell DiamRDI165520.070.050.05-16.6

Revett MnlsRVM3684.613.753.89-15.6

Crescent GoldCRA4650.120.110.11-15.3

Rubicon MnrlsRMX166715.794.764.80-14.7

Crosshair E&MgCXX12282.251.791.86-13.8

Vista GoldVGZ2732.912.402.40-13.6

OrocobreORL993.883.303.40-13.2

US GoldUXG3687.356.166.20-13.2

TSX greatest value change

WEEK

VOLUMECLOSECHANGE

Karnalyte ResKRN86397311.81+2.01

IAMGold CorpIMG1138371318.69+1.48

Northern Dyn MNDM170430317.85+1.15

Allied NevadaANV125432724.80+0.70

Nautilus MinlsNUS23412282.80+0.60

Western CopperWRN50207393.80+0.53

Newmont MngNMC10326855.64+0.52

Uranerz EnergyURZ13098704.74+0.46

Forbes & Man CFMC10144175.00+0.40

Europn GoldfldEGU277540914.99+0.38

Potash Cp SaskPOT4084589159.77-10.73

First QuantumFM2720750111.74-8.58

AgriumAGU446194886.83-5.67

Teck BTCKB1330096858.66-3.56

Inmet MiningIMN204405075.92-3.03

Teck ATCKA2096859.75-2.59

Coeur d AleneCDM16327022.48-2.10

Detour GoldDGC210268824.80-2.04

Pan Am SilverPAA139857832.78-2.00

Major DrillingMDI13974040.29-1.98