News

February 06, 2010

That Was The Week That Was … In Canada

By Our Canadian Correspondent

Minews. Now, over to our Canadian Correspondent for a look at how the Canadian markets performed over the past week.

CC. It was another ugly week for the bulls as increased concerns that some nations will default on their debt had investors heading straight towards the perceived safety of the US dollar. That in turn put pressure on commodity prices, which were weaker across the board. Interestingly, the broad basket of gold producers actually gained ground even as bullion prices touched three month lows. Perhaps this is setting the stage for an imminent rally for the gold guys. Once all the trading was done the TSX Ventures Exchange, home to more junior exploration companies than anywhere else in the world, had dropped another 2.41 per cent, while the TSX Gold Index went the other way, having posted a 4.96 per cent gain.

First Uranium was dealt a blow by the South African government's unexpected decision to revoke the environmental permits needed for its Mine Waste Solutions tailings recovery project. Without the permits the company has been forced to discontinue development and now is going into cash preservation mode.

Minews. Gold Wheaton has also been impacted by this news.

CC. Yep, the gold royalty upstart paid US$125 million in exchange for the gold purchasing rights from First Uranium’s mines. First...