Toronto Stock Exchange Gold equities retreat after reaching new

The rally has not, however, been entirely unblemished. Bouts of profit-taking continue to stop the rally cold. Today’s trading saw a 1.67% drop in the gold and silver index which closed at 7,344.2 points. On the previous day, the index had reached a new high for 1989. For the week, the index registered a 2.5% gain.

Overall trading performance today witnessed a 25.57-point rise in the composite to 3968.66 points. Metals and minerals also advanced by 8.5 points to close at 3418.02 points.

Gold issues were led by Corona Corp., which gave up 25 cents to $10 on volume of 1.2 million shares today. The shares had hit a new high of $10.25 in the previous trading session. All of Corona’s steam didn’t come from rising bullion prices alone. Daily press sensationalism — this time from Denmark — sparked worldwide interest in Corona and Platinova Resources after it was reported that the companies had a 15-million-oz gold deposit in Greenland.

The project might be geologically intriguing, but there is no 15-million-oz deposit up there just yet. Platinova shared the limelight, soaring to a new high of $2.30 before selling pressure took it back to $1.85.

Aur Resources was firm at $13.25, unchanged after reporting the widest, richest and deepest hole yet from its Louvicourt copper-zinc-gold disco very in Quebec last week. Reserves have ballooned to 36 million tons, and plenty more is yet to come. The company is considering, and wisely so, a big deep stepout to 4,500 ft. Most seasoned observers see at least 50 million tons in this deposit.

Talk is that Audrey Resources would love to see a big company take a pass at it. The company has just increased reserves in its 1100 lens in Quebec to 15 million tons. A new mill is in operation producing copper and zinc concentrate. Audrey, however, continues to languish around $3.45.

Little Redstone Resources seems to have grown up. The junior, which was 25 cents not long ago, hit a new high today of $1.51. This company is run by the same people behind that highly successful duo Franco-Nevada Mining and Euro-Nevada Mining, which also hit new highs this week. Euro-Nevada, in particular, was firm at $8.75 after American Barrick confirmed that it had made another major gold discovery in the Carlin area of Nevada. That find was first reported by The Northern Miner on Oct 30.

American Barrick Resources was easier, as were most senior golds, which suffered a sell-off today. Barrick closed at $36.38. Placer Dome slipped 50 cents to $21.75 whereas Echo Bay Mines dipped to $21.75.

One issue which bucked the downtrend was Galactic Resources. A feature in The Northern Miner last May called this company a turnaround situation warranting a re-rating upward. At that time the issue was around $3. Well five months later, that prediction has certainly come true as the issue traded to $4.40 today, up another dime. Summitville, its troubled mine in Colorado, will be sold if a buyer wants it (several are looking), and the future lies with the new Ridgeway mine and strong development plays in Nevada.

Cominco Ltd. gained 25 cents to $28.25. Minnova Inc. was steady at $19.88. Inco Ltd., the world’s largest nickel producer, remained unchanged at $34.50.

Uranium Resources slipped a nickel to $2.55 after Rio Algom announced that it no longer plans to buy the company. Uranium Resources produces uranium from a solvent mining operation in Texas. Zinc miner American Pacific advanced to $5 while Golden Knight Resources followed the pack of falling gold issues to $11.25.

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