Toronto Stock Market Market slumps as prices reach six-week low

Wednesday close, Sept. 17

It was quite a week on the market and one that more than a few investors would sooner forget. The slide started last Thursday taking its cue from the plunging Dow Jones south of the border and by the end of today’s trading, price levels in Toronto were at a six-week low. The widely followed composite 300 closed today at 2991.34 after a dip of 5.58 pts on the day and a total decline of 104.79 pts on the week.

The gold and silver index, however, fared much better. While it was down 33.32 pts on the day at 5081.68, it did net an overall gain of 146.61 pts on the week. On the Montreal spot market, the price of gold was $413(US)-bid-$415(US)- ask. Metals and minerals were down slightly on the day by 0.22 pts, while oil and gas lost 21.24 pts to settle at 2696.09.

Placer Development once again made this week’s most active list. Indeed, it’s been in this spot since the start of August when shares were trading around the $25 level. A combination of a strong balance sheet, the success of its Australian affiliate Placer Pacific, and take-over rumors have fuelled the rise of this company’s share prices. The story was no different this week with a gain of $1.13 to reach $31.25. It traded unchanged today at $31.

Echo Bay was busy and better this week. With over 700,000 shares changing hands the price moved up $1.50 to a new high of $31. This company’s consolidated gold production will reach a record 480,000 oz per year by 1987 following its recently announced acquisition of three producing mines located in Nevada owned by U.S.-based Tenneco Inc. Today, it slipped by 38 cents for a close of $29.50.

Paul Penna’s Agnico-Eagle Mines was another investor favorite this week. With 109,900 shares traded it logged a gain of $2.50 to net a new high of $31.88. In the latest 6-month period its gold division operated at an all-time peak in tons of ore milled and troy ounces of gold produced. Some 40,000 oz of the yellow metal were produced in this period, up from just over 30,000 in the same year-ago period. Today the shares moved up 13 cents for a close of $31.63.

Dumagami Mines, meanwhile was up 13 cents on the day to close at $10.13. Big news for this Penna company is the new West zone and the 2,000 ton mill ordered for its Quebec’s Bousquet Twp property.

While field crews are busy with eight drills at Lac Minerals’ Bousquet property, next door to Dumagami, the share price of Lac has been steadily moving up. This week a rise of 75 cents was registered to reach $25.75. Today, 13 cents was lost for a close of $25.38.

Campbell Red Lake, which earlier this year bought a 4.6% stake in Lac, has been moving up smartly. Over the week, it gained $2.25 to reach $29.75. Today, however, 38 cents was lost for a close of $28.88 on a volume of 15,600. Kiena Gold in which Campbell holds a 56.7% interest, new-highed over the week with a 50 cents advance to reach $27. It was trading unchanged today at $26.

Meanwhile, Campbell parent Dome Mines has also been making headway. With a gain of 88 cents it closed at $11.13 on the week, a vast improvement over the $7 level where it was trading early this summer.

There are strong rumors circulating about the three partners of the Golden Giant mine of the famed Hemlo camp: operator Noranda Inc. with a 50% interest, Golden Sceptre Resources and Goliath Gold Mines which share the remaining 50% interest. It’s rumored the three are forming a new public company backed with big financing that will go a long way in easing the debt problems facing Noranda.

Market-wise the shares of these companies have been moving up smartly. Over the week, Noranda gained 13 cents to reach $20.38, while Golden Sceptre was up a $1 to $10.88 and Goliath was likewise up a $1 to $11.63 — all new highs. In today’s trading Noranda was off 13 cents for a close of $19.63 on a volume of 398,400; Golden Sceptre was up 88 cents for a close of $11.50 on a volume of 185,200 and Goliath Gold chalked up a 50 cents gain for an even close of $12 on a volume of 172,400.

Also, more grist from the rumor mill has it that Golden Sceptre has a new find where it pulled 65 ft of 0.33 oz gold per ton. As yet, the location of this find has not been revealed.

Great Lakes Nickel caused a market stir with a gain of 14 cents on the day for a close of 74 cents on a volume of 63,400. This company recently optioned its Pardee Twp. property, near Thunder Bay, Ont. to Vancouver-listed Fleck Resources which plans to explore for platinum group metals.

Teck Corp.’s B shares were active this week. Some 2.1 million shares churned over for a loss of 13 cents to reach $25.25, with trading unchanged on the day. This company is said to have plans of re-opening its zinc mine in Daniel’s Harbor, Nfld.