Toronto Stock Exchange Inco reaches high as investors bet on

The upward trend in share prices continued during the week ended April 2 as interest rates dropped to 10.75% and investors placed their bets on an early end to the economic recession. While Januarys 1% drop in Canadian economic activity was the largest of the recession so far, analysts and investors are clearly expecting the recovery to kick in perhaps in the third quarter of this year.

Providing evidence was this weeks US2 cents-per-lb. increase in the price of copper which, at US$1.11, closed at its highest level since March 13. Silver, too, has performed strongly during the reporting period, closing up US17 cents per oz. at US$4.17.

As the price of nickel climbed US3 per lb. this week to US$4.08, shares of nickel miner Inco (TSE) reached a high for the year of US$39.58 before retreating to US$39.38. Analysts attribute nickels recent performance to fears of a strike in the Soviet Union.

Today, April 3, the composite 300 index advanced, albeit slightly, for the third successive session to close up 0.13 points at 3516.44. A volume of 28.81 million shares, valued at $339.4 million, changed hands.

Shares of Thunderwood Resources, one of this weeks most active stocks, closed at $1.30, down 10 today. Sparked by speculation on future drilling at the Scott Lake joint venture with Greenstone Resources, and a buy recommendation from analyst Raymond Goldie, Thunderwood has traded approximately 1.5 million shares this week.

Investors believe a 681.6-ft. intersection, grading 0.45% copper and 0.74% zinc within a copper-zinc-rich stringer zone, indicates that a big massive sulphide discovery may be just around the corner.

Trading 313,314 shares over the week, Greenstone closed down 15 cents at $3.10. Aur Resources, which owns 500,000 shares of Thunderwood, was quiet by comparison even though preliminary reserves have increased slightly at the companys Louvicourt Twp. joint venture with Societe Miniere Louvem. Up 15 cents today, Aur closed at $4.15, while Louvem was even at $5.50.

Also figuring on the most active list this week was Total Energold. With over 580,000 shares being exchanged this week, Total dropped 2 cents today to $1.48. The activity coincides with news that Total and partner Morrison Minerals have intersected two narrow, high-grade zones on their La Peltrie gold property in Casa Berardi, Que. Highlights from an 8-hole program include 8 ft. of 0.7 oz. gold per ton. Total can earn a 50% stake in any individual Morrison property by spending $250,000.

Shares of Morrison reached a new high for the year of 79 cents after giving the green light to a private placement of 1.6 million common shares to Morrison Petroleums at 75 cents each. Morrison, which closed out the week at 78 cents, says it will use part of the $750,000 proceeds to reduce existing debts owed to Morrison Petroleums.

While gold continued to lag this week before closing at US$357.85 per oz. in London, Skyline Gold benefited from news that Placer Dome will continue exploration on two of the companys Iskut River properties in British Columbia. Having hit the active list this week, Skyline advanced 5 cents today to 85 cents.

Placer Dome was unchanged at $16.75 despite a 56.30-point increase in the gold-silver index. However, some of the other gold issues, including American Barrick and LAC Minerals, fared better. Barrick was up 25 cents to $24 while LAC edged up 38 cents to $9.50.

According to some analysts, the Soviets are stockpiling gold for sale in Zurich. This, they say, would be negative for the gold price. Others say the supply is limited and the effects limited.

Nevertheless, the soft gold price helped to drive the A shares of Dickenson Mines to a new low for the year of $2.65. They peaked at $5.88.

Bema Gold says 4.4 million shares of Norgold Resources, representing 84.7% of Norgolds shares outstanding, have been tendered to Bemas takeover bid of one Bema share for every 2.5 Norgold shares. Up 3 cents today to $2.13, Bema said it will extend the offer to April 8.

QPX Minerals says its board has resolved to recommend to shareholders that they accept a takeover offer by Rea Gold Corp. of Vancouver. Rea Gold has offered one share of Rea for 3.4 QPX shares, subject to acquisition of a minimum of 90% of the outstanding shares.

As officials at Curragh Resources prepared for the companys April 4 annual meeting, the issue gave up 13 cents to close at $7.50. Part of a 30.5% block of Curragh shares held by debt-ridden Giant Resources of Australia, they were sold recently for about $44.2 million.

Westpac Banking Corp., acting in its capacity as a secured creditor, agreed to sell special warrants, entitling institutional holders to acquire 6.9 million Curragh common shares for $6.38 a share. The shares were purchased by clients of Toronto investment dealer Nesbitt Thomson Deacon.