STOCK MARKETS — TSE breaks through 7,000 ceiling for the first time — Mining stocks buck trend, plummet to 1997 low

For the first time in the history of the Toronto Stock Exchange, the 300 composite index has smashed through the 7,000 level.

The index climbed 188.98 points, or 2.8%, over the report period ended Sept. 23, reaching 7,014.23. Trading volumes were high, bounding past the 120-million mark on two of the five trading days.

However, none of this market excitement was evident over at the currency exchange, where the Canadian dollar closed at US72.08cents, down 13 points, against its American counterpart. The Loony lost roughly 2cents on the British pound and gained 1cents on the Deutschmark, but held its own against the Japanese yen.

In the precious metals market, the price of the yellow metal gained a welcome US$2.05, reaching US$322 per oz., but remained mired in its deepest price depression since 1985. Platinum had a comparatively spectacular week, gaining $22 to hit US$443 per oz., whereas silver climbed 13cents, to US$4.72 per oz.

The TSE gold and precious metals sub-group enjoyed a solid week, closing out the report period up 264.1 points, or 3.5%, at 7,871.18. Nevertheless, that value remains perilously close to the index’s 1997 low.

Among the key gold stocks riding the wave was Barrick Gold, which rose $1 to $30.35 following the announcement that it would jettison its highest-cost mines to focus on newer, less costly producers. Placer Dome rose $1.15 to $22.35 following a decision handed down by a Venezuelan court in the legal dispute the company has with Crystallex over part of the Cristinas gold project. Predictably, Crystallex dropped 60cents to $6.

Other notable gold gainers included: Kinross Gold, up 95cents to $6.40; Teck, up $1.15

to $25.40; Euro-Nevada Mining, up 40cents to $22.15; and TVX Gold, up 45cents to $6.95.

Producers not toeing the line over the report period included Cameco, down 35cents to $48.25, and Bema Gold, down 30cents to $5.15.

Among junior golds, Canarc Resource had a strong week, gaining 21cents to close at 70cents. The Vancouver-based company confirmed the presence of widespread gold mineralization at its Benzdorp property in Suriname, where trenching and auger drilling are under way.

AntOro Resources, which recently suspended activities at its Colombian joint venture with Procoloro Resources in order to focus on its Quebec projects, saw its share rise 41% over the week, to 24cents from 17cents. Pan American Resources, which recently signed an agreement with Western Pacific Mining Exploration to explore for gold in Chile, lost 30% of its value this week, dropping to 30cents from 43cents.

On the base metal front, the TSE metals and minerals sub-group lost 33.78 points, closing the week at 4,752.22. The mining sector of the sub-group dropped to its lowest point this year. To wit, Inco VBN shed $6.30 on news that the Voisey’s Bay nickel-copper-cobalt mine in Labrador would open at least a year behind schedule.

Having acquired seven mines in South America after a majority buyout of privately owned Minera, Breakwater Resources saw its shares jump $1.75 to $9.10. The company expects to be the world’s No. 3 zinc producer by next year.

Financially troubled sapphire miner American Gem led all Toronto-listed mining stocks in volume traded over the week, with 12.8 million of its bargain-priced shares crossing the floor. The stock lost 2cents, closing at 11cents,

but was making a strong comeback at presstime en route to another winning volume-traded total. The company’s board approved a major restructuring in order to improve its cash position.