TSX up for July 26-30

The TSX Composite Index finished the July 26-30 period up 20 points at 11,746.8 joining in the global market rally. The resource heavy Index was, no doubt, also helped by the fact that oil prices hit a three-month high touching US$82 per barrel on fears that
oil inventories were lowering.

Gold finished the period US$14 lower at US$1,169 and the Global Gold Index tracked the lower figure as it was off 10 points for the period at 346.93. The yellow metal was showing signs of strength at presstime, however, as jewelers began buying at the lower prices and China took steps to free up its domestic gold trading market.

The key base metals – copper, aluminum, nickel, tin, lead and zinc – all tracked higher over the period but those gains hadn’t yet translated into the Capped Metals & Mining Index as it finished the period off 6 points to 953 points.

Labrador Iron Mines got some good news during the period and watched as its shares rise 35% to $5.30. The company announced it had received the approvals it needs to start construction of its open pit mine at four of the deposits at its Schefferville project. The green light came from the provincial government of Newfoundland and Labrador. While the company had originally planned to get a mine into production this year, delays in the permitting process stalled development. The company is still waiting on two operating permits – one for the operation of a mine and one for a railway spur line that has already been built.

The anticipation of second quarter results were a boon to Denison Mines share price as the uranium miner climbed 25% to finish the period trading at $1.57. The company announced that it would release its results on Aug. 6. Denison recently fed the market good news with the announcement of the discovery of two new mineralized zones at its Wheeler River project in the Athabasca Basin.

New drill results from its Altar project in Argentina weren’t enough to lift Peregrine Metals fortunes, however. Assays from the latest results came from the last holes of its 2010 drill program and were highlighted by 178 metres grading 0.57% copper and 78 metres grading 0.69% copper. Peregrine shares were off 22% to 57¢ for the period.

A big drop in profits had OceanaGold down 13% to $2.71. The company reported first half profits of $19.9 million – down 80% from a year previous. Part of the reason for the drop was the money the company spent to close out its hedgebook.

A financing deal by Oromin Exploration caused its shares to fall as well. The company issued 18.7 million shares for 80¢ per share and the dilution sent the company’s shares down 13% to 83¢.