Toronto Stock Exchange Aur, Louvem advance on Noranda buying rumor

Aur was firm today, closing at $8.38 on volume of 329,000 shares. Louvem was this week’s volume leader closing at $4.30. St. Genevieve, which has a 56% interest in Louvem, raced to a new high of $2.15 on volume of more than 1.7 million shares.

Rumor and speculation concerning the project is rampant. The latest is that Aur has completed four additional holes, three of which have hit. However, Aur president Jim Gill says only batches of holes will be released in the future.

The Northern Miner has also confirmed that Noranda Inc. has purchased at least 400,000 Aur shares or 2.3% of the company. Affiliates Kerr Addison Mines and Minnova Inc. are also potential buyers. Noranda has also been looking at attacking Louvem via the backdoor — by evaluating a series of convertible debentures issued by St. Genevieve in 1987. That would give the resource giant the potential to tie up 100% of the project. If purchase d, the debentures would lead to control of St. Genevieve and indirectly, Louvem. Kerr and Minnova were quiet at $18.88 and $17.50 respectively.

Despite the excitement generated by the find, general trading activity was weaker. The TSE composite slipped 11.8 pts to 3766.57 pts. Gold and silver declined 20.44 pts to 5850.10 pts on an unchanged London gold price of $373.75(US) per oz. The metals and minerals index also gave up ground closing 16 pts lower at 3292.68 pts. Today’s volume was 24.1 million shares.

Base metals, which have been in vogue this year, have displayed some weakness of late. However, the general consensus is that the dismal days of 1982-85 will probably not be seen again. Audrey Resources is one company quite content with current prices. The issue was firm at $3.70 following news of a major hit at the company’s Mobrun copper-zinc mine near Rouyn, Que. A new mill is set to start operating this summer.

Breakwater Resources got a boost from a new discovery at the company’s 49%-owned gold mine property near Wenatchee, Wash. The issue advanced to $3. Asamera Minerals, which holds the remaining interest, was off a nickel to $4.

Franco-Nevada Mining is expecting to get about $600 million over the next 18 years from its royalty interest in the big Goldstrike gold mine in Nevada. The issue advanced to $10.88.

Plexus Resources appears to be on its way to becoming a gold producer — after several years of delays. The company’s Rawhide project is going forward after an ownership dispute was resolved. Typical of the general state of the gold equity environment these days, the issue promptly lost 15 cents to close at $3.15.

Wilanour Resources was firm at $3.20. The company holds a stake in the former producing Cochenour- Willans gold mine near Red Lake, Ont., which is being aggressively explored by Inco Gold. Sources say that Inco has encountered strong results at depth.

To no one’s surprise, the Valdez Creek gold placer operation in Alaska is being shut down until September. MVP Capital, which holds a big interest in the project, was quiet at 40 cents .

Major gold issues were generally weaker. American Barrick Resources was easier at $28 whereas LAC Minerals dipped to $12.13. Corona Corp.’s A shares gave up 12 cents to $8.63.

Base metal giants Inco Ltd. and Falconbridge Ltd. were both easier. Inco closed at $32.63 whereas Falconbridge dipped to $28.13 on volume of 278,000 shares.

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