Toronto Stock Exchange Freewest hits new high as market pauses

As investors waited for an announcement on whether the Middle East war will end before the vital ground battle gets underway, share prices continued to drift higher during the week ended Feb. 19. A definitive announcement on whether a Soviet peace proposal would persuade U.S. President George Bush to issue a cease-fire order had not been made before The Northern Miner went to press. But an end to hostilities should whet the appetite of hungry investors who have been betting on a short war.

Today, Feb. 20, the composite 300 index gave up 37.40 points to post its first losing session in four days. While it closed at 3493.54 on a volume of 24 million shares, analysts expect the market to move upwards in the next few weeks. “The market has been rising so dramatically that there is bound to be a pause for profit taking,” said Ira Katzin, investment adviser at Richardson Greenshields of Canada in Toronto. “We still feel that the overall market is headed much higher.”

While investors have been buying up blue chips almost as if they were going out of style, shares of Freewest Resources edged up to a new high of $4.45. That represents an increase of $1.05 over the week. The latest from Freewest’s Benoit Twp. gold discovery near Quevillon, Que., is that a second drill has been moved on to the property.

Noranda and affiliate Hemlo Gold currently own roughly 10% of Freewest’s 12.3 million issued shares. Noranda also has an option to buy an additional two million shares at 10% below the market price.

However, another member of the Noranda fold didn’t fare quite so well this week. Shares of Central Crude fell 59 cents to $2.50 during the reporting period on news that its Eagle River gold project at Mishibishu Lake, Ont., has been shelved until gold prices improve. Gold gave up US$2.51 an oz. this week before closing at US$364.65 in London. Not surprisingly, falling gold shares drove the gold-silver index down 27.69 points to 5158.45.

Shares of gold miners American Barrick Resources, LAC Minerals and Placer Dome all took a beating this week. Barrick, the biggest casualty, gave up $1.38 before closing at $22.88. LAC was down 38 cents and Placer Dome 13 cents.

Shares of Corona were even at $4.80 despite news that Chairman Ned Goodman is stepping down from the position to concentrate on merchant banking, although he will remain a director and shareholder of the company. Longtime Corona shareholders probably will shed few tears as the “Ned Factor” is widely cited as one reason for the company’s complicated share structure as well as its low share price (in comparison to other gold producers).

On the base metals front, a gyrating metals and minerals index gave up 76.16 points today, closing at 3143.92. Of the blue chips, Inco hovered at $36.63, just 15 cents below its 52-week high point. Noranda was down 25 cents to $18.25 and Rio Algom edged up 13 cents to $19.50.

Madeleine Mines, even today at $5.50, has run into trouble en route to bringing its Lac des Iles palladium/platinum project near Thunder Bay, Ont., into production. Madeleine and President Patrick Sheridan have been charged with violating Ontario’s environment rules and are scheduled to appear in a Thunder Bay courtroom on March 12.

News that a vigilant Environment Ministry has laid charges comes as no surprise as government officials have been irked by the fact that plant construction has gone ahead without their approval.

Meanwhile, shares of Brunswick Mining and Smelting advanced by 88 cents this week as employee and management representatives resumed talks aimed at ending an 8-month strike at the Bathurst, N.B., zinc mine and smelter. A mediator appointed by the New Brunswick government said the two sides are scheduled to meet once again on March 5. But he declined to say what progress, if any, has been made.

Finally, speculation on a scheduled Feb. 21 announcement by St. Genevieve Resources drove the company’s shares up 25 cents to $1.03. Subsidiary Societe Miniere Louvem also shot up 65 cents to $4.60. But spokesman Josette Gauthier declined to discuss the contents of the announcement. She said it relates to the company rather than the Louvicourt Twp., Que., massive sulphide joint venture with Aur Resources. Aur closed up 40 cents at $4.20.