STOCK MARKETS — TSE posts gains as miners look on

The Toronto Stock Exchange gained 498.70 points (or 1.6%) over the report period ended Feb. 4 to close at 6,145.41 — a new record.

The banks, retailers and industrial manufacturers were the big gainers this week, with base metal miners left behind and gold miners falling.

Trading volumes were heavy, particularly on Jan. 30, when 146 million shares crossed the floor.

The Canadian dollar fell fractionally against the greenback, trading at US74.33 cents at noon on Feb. 5, for a loss of 0.12 cents. The loony held its recent gains against the European currencies and the yen, while the Bank of Canada held its overnight loan rate steady.

Gold lost US$7 on the London bullion market over the report period, and was fixed at US$343.15 per oz. on the morning of Feb. 5. The woes of the yellow metal were echoed by the other precious metals, with platinum falling $4.75 to US$349.75 per oz. and silver losing 6 cents to finish the trading period at US$4.86.

The gold and precious minerals sub-index experienced another sorry week, closing Feb. 4 at 10,769.47, down 46.66 points (or 0.4% of value). TVX Gold was off 15 cents to $10.55 in heavy trading, Teck B-series shares fell $1.15 to $30.45, and Franco-Nevada lost $1.15 to close at $58.85.

Uncertainty continued over the fate of the Busang gold deposit in Indonesia, with reports in the daily press that Indonesian government officials were casting doubt on whether Bre-X Minerals would keep title to the property.

Nonetheless, Bre-X was up 10 cents, closing at $21.80. Montreal-listed Bresea Resources, which owns 23% of Bre-X, was also higher, adding 70 cents to close at $11.20. Heavyweight contenders Placer Dome and Barrick Gold went opposite ways, with Placer 5 cents higher at $27.95 and Barrick off 75 cents at $36.10.

The base metals enjoyed a generally positive week on the London Metal Exchange, with nickel adding 25 cents to finish at US$3.45 per lb. and zinc up 2 cents to US52 cents. Copper was the exception, as rising LME warehouse levels began to push down its spot price. The red metal finished the report period at US$1.09, off 6 cents from the week before.

Inco added $1.15 to finish at $45.85. The nickel producer, which is forecasting strong prices for the metal in 1997, announced a new mineralized zone at Voisey’s Bay, Labrador. Cameco lost $2.70 to close at $54.30, possibly due to profit-takers selling in advance of the company’s release of annual earnings figures on Feb. 6. Cameco’s earnings for 1996 were a record $138 million.

Among the other base metal miners, Noranda was up 15 cents at $32.20, Falconbridge fell 50 cents to $30.40, and Cominco was off 50 cents at $37.90.

Toronto juniors were lively, with Pure Gold Resources adding 10 cents to finish at 42 cents, with 54.6 million shares traded over five days. The company announced the discovery of several kimberlite pipes on its Buffalo Hills property in Alberta. Its joint-venture partner there, Ashton Mining, added 39 cents to close at $2.14.

Antares Mining was up 71 cents to $1.38 on news that the company completed due diligence on an Indonesian property and had closed its joint-venture deal for a 45% interest.

Coleraine Resources was the most active junior on the Montreal Exchange. The company started drilling at the Perron gold property, near Normetal, Que., where previous drilling by Falconbridge intersected two zones with widths of 4-13 metres and grades of 0.2-5.5 grams per tonne. The issue gained 10 cents over the report period to finish at 27 cents, with 5.8 million shares traded.