Toronto Stock Exchange (June 27, 1988)

A rush by investors to catch a piece of the summer rally added another 27.02 pts to the composite index today, pushing it to a new post-October 19th high. For the week, the index has gained more than 43 pts to 3,443.33 pts. Gold bullion took a beating, dropping to $448.50 on the second London fix. Paradoxically, the very concerns which forced gold investors to sell — the prospects for higher interest rates designed to cool an overheating economy and the higher inflation — are being discarded by non-gold investors.

The bullion sell-off was reflected in the gold and silver index which lost 54.51 pts to close at 6,860.09 pts today. The flipside of the gold index is the metals and minerals index, which continues to surge on booming commodity prices.

The biggest mover was Falconbridge Ltd., which traded a spectacular 1.95 million shares today to reach a new high of $27.13 before settling back to $26.50. The buying, which was worth more than $50 million, was sparked by news that Falconbridge is considering buying a control block in itself from Placer Dome. The block is up for sale.

Inco Ltd., which is the world’s largest nickel producer, was also strong, closing at $40.75 — yet another new high. One research group feels the company will have earnings this year of $700 million. Inco is enjoying the benefits of record nickel prices and historically low operating costs at its Canadian mining operations.

On the gold front, Queenston Gold Mines traded to a new high of $2.70 before closing at $2.69 on volume of 278,200 shares today. Just last week, the issue was trading at $1.60. This 68% increase in value comes on news that Lac Minerals has drilled a 7-ft intersection grading 0.11 oz gold per ton — not exactly a barn burner. The hole comes from Queenston’s Kirkland West property held under option by Lac. Lac is drilling from its Macassa gold mine right next door. Lac, which can earn a 65% interest in any profits from the property, was better at $15, up 12 cents for the day.

Galactic Resources was back in Europe this week, closing another debt deal. The wheeling and dealing company placed a bond issue with Bank IndoSuez for more than $70 million. The issue is expected to be successful. Galactic was easier at $7.13.

Cambior bucked the downtrend, adding 25 cents to $16.38. The company is looking to produce 200,000 oz of gold this year from operations in Ontario and Quebec.

Consolidated Professor Mines came to life, moving to $1.35 — up 20 cents on the day. Professor has received a positive feasibility study for its Duport gold project near Kenora, Ont. (See front page story). With Conwest Exploration as its major shareholder, the Professor is now looking for $50 million with which to build a mine and mill facility.

Another Conwest company, Mineral Resources International, was perked up by robust zinc prices. MRI controls the Nanisivik zinc- lead mine in the Arctic. The issue was better, closing at $4.30.

A deal between Noramco Mining Corp. and Breakwater Resources failed to help either issue. Noramco dipped to $4 whereas Breakwater gave up a quarter to $5.25. Breakwater is exchanging equity for a stake in Noramco. The deal came fast on the heels of Battle Mountain’s decision to terminate discussions with Noramco after Battle Mountain reviewed Noramco’s property portfolio.