Toronto Stock Exchange Market quiet as Muscocho, Hemlo Gold table

After experiencing some major gyrations earlier this week, including the biggest 1-day decline since last October, the market settled back into a state of calm, today, Aug. 29. The composite 300 index gave up only 14.48 points before closing at 3339.72, on a volume of 17.5 million shares. Gold, which has drifted downward from last week’s US$410 per oz. level, closed at US$385.40 on the second London price fix.

Analysts say gold’s slide is tied to the oil prices, which have also been heading in a southward direction to around US$27 per barrel from a 7-year high of US$31.93. Investors are now waiting for some new signals, either from the Persian Gulf or the economy before deciding their next move.

While they wait, some of the big base metals companies have been feeling the squeeze. They include Noranda which closed down 25 cents today at $17.75. Teck remained even today while Cominco gave up 12 cents to close at $23.75.

One of the most active mining issues this week, Muscocho Exploration, (and partner Flanagan McAdam Resources) have agreed to sell the mill and related surface infrastructure at their Magnacon gold mine near Wawa, Ont., to Hemlo Gold for $9 million. The proposed agreement envisages an exploration deal that would allow Hemlo to earn an interest in the property in return for exploration expenditures. Muscocho is trading at 14 cents while Hemlo gave up 13 cents to close at $13.

Also on the most active list this week was Bema Gold. Although, Bema remained steady today, closing at $3.90, recent advances in the company’s share price are tied to results from the company’s Refugio gold property in Chile.

While it has won a fight with Placer Dome for control of the board of Stikine Resources, Corona continues to suffer from its recent attempts to expand into financial services and base metals mining. Those attempts have weakened shareholder confidence in management, and they explain why Corona A shares are trading at $6.50, up 12 cents today, according to analysts.

Shares of Stikine, which owns 50% of the Eskay Creek gold discovery in British Columbia, were even today, closing at $77. They reached a high of $79 earlier in the week. To prepare for its new role as operator of the Eskay Creek gold project in British Columbia, Corona has relocated to Vancouver from Toronto.

There was a lot of talk but not much action among the players in the Louvicourt Twp. base metals discovery east of Val d’Or, Que. Having been delivered a 10-business-day ultimatum by St. Genevieve Resources, Noranda is rumored to be seeking a deal that would prevent it from having to purchase 4.1 million Societe Miniere Louvem shares for $8.10 a piece. If it buys the shares, Noranda will be making a large investment not knowing its status relative to Louvem’s partner Aur Resources because of litigation over the property.

News that the companies were holding “semi-daily meetings” resulted in modest gains for Aur, St. Genevieve and Louvem. Aur gained 5 cents while St. Genevieve and Louvem closed up 13 cents and 4 cents respectively.

While the Louvicourt players are attempting to avoid a lengthy court battle Ontex Resources and Metalore Resources are in court this week to argue over the Brookbank gold property in northern Ontario. The lawsuit, which originated back in 1986, has stopped Metalore from releasing results from a recent 35,000-ft. winter program completed by Placer Dome. Shares of Metalore closed up 25 cents today at $19.13. Redfern Resources, meanwhile, reached a new high for the year of $8.25.