For the tale of the tape, the TSX Exchange lost 0.68%, while the TSX Gold Index gave back 3.3% and the TSX Venture Exchange, Canada’s largest junior exploration bourse, added 0.10% with the declining issuers beating out the advancers by a 427 to 376 margin on pathetic volume of only 82 million shares traded.

In a clear sign of uncertain times, Uruguay Mineral Exploration (CVE:UME) has hedged 45,000 ounces of the 63,000 ounces of gold production expected for the nine-month period ending May 31, 2009. The price is $796.25 per ounce. Uruguay ended the day up C$0.04 at C$1.19.

A slumping zinc price has prompted HudBay Minerals (TSE:HBM) to close its Balmat mine in New York state. The mine re-opened in May 2006 and hit commercial production in January 2007. HudBay ended the day down C$0.29 at C$11.11.

Sprott Resource (TSE:SCP) signed a lock-up agreement with Severstal Resources, the mining division of OAO Severstal, to tender into a takeover bid to be made by Severstal for all the outstanding shares of PBS Coals. PBS is a private company in the midst of going public through a company called Penfold Capital Acquisition (CVE:PNA.P). The takeout offer is at C$8.30 per share, which would put another C$225.3 million into Sprott’s already full coffers. Sprott ended the day down C$0.02 at C$3.43 on over 10 million shares changing hands.

The Canadian markets are so heavily weighted on the resource side that it looks like the price of oil will dictate market direction over the medium term. We will see what Monday trading has in store.

Source: Resource Stock Roundup: Saturday, August 23rd, 2008