Toronto Stock Exchange Golds in the driver’s seat help steer

Wednesday close, Nov 26

With golds in the driver’s seat, the market managed to inch its way back above the 3,000 level over the week, but just barely. The golds and silver index netted a gain of close to 200 pts over the week, including its advance of 24.06 pts today to close at 5,142.92. This certainly helped push the widely followed composite 300 upwards, though the gain netted today was just 0.07 pts for a close of 3,025.09 pts. Metals and minerals dropped 14.12 pts to 2,082.41 today, while oils lost 27.94 to 2,778.88. The price of gold was soft today with a close on the Montreal spot market of $328(US) bid and $384(US) ask.

With almost 900,000 shares changing hands, Golden Knight Resources tops this week’s most active list with a gain of $2.25 for a close of $14.38. This company, with project operator Inco Ltd has a $2.8 million surface exploration program on the go at the Golden Pond property in the Casa Berardi area of Quebec. Results from the first four holes have been strong. Today, Golden Knight was off 50 cents to $13.88. Inco was up 50 cents on the week to close at $17.25 with trading unchanged today.

In platinum circles, Madeleine Mines which plans to bring its optioned Lac des Iles property, near Thunder Bay, into production was up 70 cents on the week to new- high at $5.75. Today it was off a quarter to $5.25. TVX Mining Corp with interests in a platinum bet way down in Brazil, took it on the chin this week with a loss of 27 cents to close at $1.77. It was up 3 cents today for a close of $1.80.

Teck Corp is not going ahead to the feasibility stage on Vancouver- listed Fleck Resources’ Marathon platinum property. However, Teck has not abandoned its search for platinum. It’s involved in a preliminary reconniasance program on the east side of Greenland with a private Canadian company called Platinova. Over the week, Teck saw its B shares drop 88 cents to $23.50. A quarter was lost today for a close of $23.25.

Agnico-Eagle Mines was down $1.58 on the week for a close of $26.13, with trading unchanged today. A recent Drexel Burnham Lambert report notes that mining methods at the Agnico-Eagle/Telbel mine will change to sub-level retreat from long-hole stoping to help solve dilution problems. In the long-hole stoping method, ore is blasted over wide areas and left to be picked up at a later time. But the rock being encountered today is so soft that by the time the ore is mucked out, enough of the wall has chipped off and mixed with the ore to cut the millhead grade severely. However, with the new mining method, it’s believed the average ore grade will return to 0.20 oz gold per ton from the average 0.15 oz gold per ton recently experienced.

Lac Minerals and International Corona are wrapping up their arguments this week at the Ontario court of appeal over the ownership of the Page-Williams Hemlo mine. Over the past week, Lac shares were strong with a gain of $2.25 for a close of $28, while Corona dropped 88 cents for a close of $27.75. Today Lac was up 75 cents to close at $28.75, while Corona dropped 88 cents to close at $26.88.

Conwest Exploration saw its A shares new-high during the week at $11, after a gain of $1. This company has a 2.3% interest in the new Golden Giant public company. Other shareholders in the new company were down on the week, Noranda Inc, with a 62.4% stake, lost 13 cents to close at $20.38, Golden Sceptre was o ff 50 cents for a close of $16.13, while Goliath Gold was down 88 cents to close at $17.88.

In today’s trading, Conwest was up 13 cents to $11.13, Noranda gained a quarter to $20.63. Golden Sceptre was up 13 cents to $16.25 and Goliath was down 13 cents to $17.75.

Franco Nevada Mining new- highed at $3.05 this week. Pancana Minerals which is drilling on the Goldstrike property in Nevada, from which Franco receives a royalty was up 38 cents on the week. Today Franco Nevada lost 9 cents to $2.90, while Pancana dropped a quarter to $8.50.