STOCK MARKETS — BQ losses in by-elections add grit to TSE

Recent Liberal wins in hotly contested federal by-elections were welcome news to investors, which helped the Toronto Stock Exchange post a modest gain during the 5-day report period ended Feb. 14. The composite 300 index rose 9.55 points to close at 4,110.54.

Market-watchers viewed the defeat of separatist Bloc Quebecois candidates in the Quebec ridings as a positive sign for the federalist cause in the upcoming independence referendum.

A treasury bill rally, late in the week, allowed the Bank of Canada to limit the rise in the bank rate to just 15 points to 8.07%.

A stronger bank rate did little to help the dollar as it slipped to US$71.34, a drop of almost a third of a cent on the week.

Gold bullion posted a slight gain on the week, with the London afternoon fix on Feb. 15 set at US$376.60 per oz., up US$2.

Senior gold producers were mixed on the week, with Barrick Gold jumping $1 to $29.75; Placer Dome adding 25 cents to close at $27.25; and Echo Bay Mines and Hemlo Gold Mines each losing 25 cents to close at $12.75 and $11.63, respectively.

Cambior’s gold output increased for the fifth year in a row; the figure rose by about 4,000 oz. to 522,077 oz. in 1994. The increase was attributed to better output from the Omai, Valdez Creek and Sleeping Giant operations. Cambior shares were up 50 cents to close at $13.63.

A unit of Noranda has decided to invest $84 million to develop the Bell Allard zinc-copper deposit near Matagami, Que. The deposit exists 1,000 metres below surface and is estimated to contain 3.2 million tonnes averaging 13.77% zinc and 1.5% copper, plus 43.45 grams silver and 0.763 grams gold per tonne. Noranda expects production will commence in the summer of 1998. Shares of the company added 39 cents to close at $24.25.

Investors looked kindly on news that International Musto Explorations and Australian partner MIM Holdings plan to increase daily output at their Bajo de la Alumbrera copper-gold deposit in Argentina. Daily production is expected to rise by 33%, to 80,000 from 60,000 tonnes. During the first four years of operation, production is estimated at 363 million lb. copper and 546,000 oz. gold. Capital cost estimates have also increased, to $758 million from $600 million. Musto shares were up 88 cents on the week to $6.38. Viceroy Resources cancelled a $42.7-million deal to buy a 46.4% stake in MK Gold, the company that owns the other 25% interest in Viceroy’s Castle Mountain gold mine in California.

Market-watchers speculate that the acquisition was scuttled because institutional investors were against the deal, and it was also felt that Viceroy would not be able to come up with the necessary financing. Viceroy lost 13 cents to close at $7.25.

Another company investing large amounts of cash in exploration and development is Goldcorp. The gold producer will spend $10 million over the next two years to complete exploration and development drilling at the Red Lake mine in Balmertown, Ont. As a result of the planned activities, Goldcorp expects annual gold production from the Red Lake mine to fall to about 50,000 oz. in 1995 from the 66,000 oz. produced in 1994. Shares of Goldcorp ended at $7, down 13 cents.

News that Murgor Resources is moving a drill on to its Barry Twp. gold property near Lebel-sur-Quevillon, Que., gave a boost to the shares of several other companies active in the area. Orient Resources hit a new 52-week high of 38 cents before closing at 35 cents, up 14 cents. Others included Freewest Resources Canada, adding 31 cents to end at $1.04, and Consolidated Oasis Resources, which was up 2 cents to 39 cents. Other winners on the week included Sudbury Contact which posted a gain of $1.25 to close the week at $17. The company is continuing to explore and develop the Victoria Creek gold project in northeastern Ontario. Gold producers Eden Roc Mineral and affiliated Marshall Minerals also posted healthy gains. Eden Roc added 60 cents to close at $3.35, while Marshall shares jumped 30 cents to close at $3.