Toronto Stock Exchange (December 30, 1991)

Shares of Vancouver gold miner Placer Dome hovered close to their annual low during the week ended Dec. 23 as the company delayed a development decision on its Mt. Milligan gold-copper project.

The clear volume leader with 2.6 million shares traded, Placer Dome sank to $11.25 after electing recently to back away from plans to spend $240 million to develop the Eskay Creek gold project in northwestern British Columbia. While Placer Dome President Tony Petrina was being treated in hospital for an injury to a bone in his foot, the U.S. Federal Reserve Board was bidding to kick start the U.S. economy by cutting short-term interest rates to their lowest level since 1964.

The move sparked a share price rally in both New York and Toronto where the composite 300 index advanced 37.3 points to 3,378.15 on a volume of 17.2 million shares valued at $205.6 million.

A US$1.90-per-oz. increase in the price of gold this week had a positive impact on a number of precious metal stocks including Royal Oak Mines and American Barrick Resources. Royal Oak ended the week at $1.50 just below its high of $1.63, while American Barrick added 13 cents to close at $30.13. Royal Oak hopes to have the Hope Brook gold mine in Newfoundland back in production next summer after offering to buy the operation from BP Canada Inc. for 5.5 million shares and future royalties.

International Corona was also among the volume leaders as investors await an announcement on how it will proceed now that Placer Dome has decided not to finance development at Eskay Creek. Trading 1.6 million shares this week, Corona closed down 13 cents at $5.13.

There was some renewed interest in Fort Knox Gold during the report period after Inco took control of exploration at the company’s Shining Tree base metal play in northeastern Ontario. Buoyed by the Inco move, Fort Knox remained steady at $1.20 on a volume of 650,000 shares. Inco, which owns 40.9% of Fort Knox, added 88 cents this week before closing at $33.63. Northgate Exploration added 12 cents to close at 77 cents after delaying a rights offering designed to raise up to $5 million. Under an earlier proposal, shareholders of record Jan. 6 could subscribe for a common share at 88 cents for every four shares held. But the terms may now be changed. Westfield Minerals, which holds about 16% of Northgate, says it intends to exercise its initial right to purchase 884,474 shares in the offering. The Northern Ontario Heritage Fund has agreed to lend Muscocho Explorations and McNellen Resources $1 million in working capital for their jointly held Magino gold mine near Wawa, Ont. Muscocho trades at around 7 cents. Miners at Curragh Resources’ Sa Dena Hes lead-zinc mine in the Yukon were rudely awakened early one morning recently when a propane leakage caused an explosion in one of the bunker trailers. Miraculously, the occupants suffered only minor injuries and the Sa Dena Hes operation has not been affected. However, shares of Curragh hit a low of $3 this week before advancing to close at $3.25.

Asamera Minerals and Echo Bay Mines also bottomed at 75 cents and $7.63, respectively.

More than one million Denison Mines B shares changed hands as Ontario Hydro rejected the uranium miner’s claim that the utility owes Denison more than $300 million for costs incurred at the Elliot Lake mine. If the two sides don’t settle next month, the issue will be sent to arbitration, Denison says. The B shares were unchanged at 15 cents.