Toronto Stock Exchange Small advances fail to stem themarket’s

Small advances made yesterday and today, failed to stem losses realized during our review week. The absence of any major buying and weak market support resulted in continued losses on the TSE which, after adding today’s 12.12-pt gain, left the composite 21 pts lighter over last weeks close.

Both metals and golds made marginal gains, closing at 2,752.99 pts and 5,658.24 pts respectively. Gold bullion remained stagnant at $421.50(US) per oz on London’s second fix. Burdened by high interest rates and a growing perception that inflation is being kept under control by the Federal Reserve Board in the U.S., gold is in the doldrums.

Although several analysts have predicted a year-end advance to $500(US), several are also looking south. Continued declines could end with support at $380(US).

The prognosis for gold, although mixed, is not hindering the major gold producers from their record earnings pace. The same, unfortunately, can’t be said of the low capitalized juniors with no production or cash flow. As we have noted on several occasions following Oct 19 last year, this sector has been so devastated, that several years might be required to repair the damage and improve investor confidence.

Corona Corp.’s A shares remained unchanged at $8.38. Lac Minerals added 13 cents to $12.13. Both will be starting another round in court this week, fighting for control of the rich Page-Williams gold mine at Hemlo.

Placer Dome Inc. has lost John Walton, its president, who resigned after a disagreement with his board. The fact that Placer almost immediately appointed Tony Petrina to Walton’s post suggests that Walton’s resignation might have been a combination of push and shove. The issue was firm at $15 — up a quarter.

Marshall Cohen, the much- respected former Ottawa mandarin who heads Olympia and York, is joining the board of American Barrick Resources. Barrick was steady at $20. Cohen’s appointment is yet another feather in Peter Munk’s cap. As Barrick’s founder, he has created the mining success story of decade out of the ashes of almost-bankrupt Camflo Mines, which Barrick acquired five years ago.

What’s happening to base metals? When prices were booming to record highs and earnings amazed even the senior executives of Inco and Falconbridge, investors generally yawned. Although share prices did move, they’ve come right back again.

Surprisingly, nickel gave up more ground today yet Inco advanced 62 cents to $33.25 on volume of almost 500,000 shares. Falconbridge, picked up 25 cents to $20.25.

Noranda Inc., which controls Falconbridge, is expected to increase its interest in the big base metals miner. Noranda was also better at $22. Kerr Addison Mines, which is also controlled by Noranda, advanced 13 cents to $19.63.

Another big increase in gold reserves at the Tundra gold deposit in the N.W. T., did little for Getty Resources. Controlled by French interests , Getty slipped to $5.38. Last week we noted that Claude Resources was looking at short list of potential companies as partners for its Seabee gold deposit in Saskatchewan. We were wrong. Claude says it plans to develop the multi- million ton deposit by itself. The issue was a winner, adding 15 cents to $3.55.

Pacific Trans-Ocean traded more than 100,000 shares today to close at $1.53. The junior is awash in financial problems, which the company says will be resolved shortly. Production shortfalls and cost over runs at the Ketza River gold mine have Pacific’s bankers nervous over a gold loan to that company.

Golden Knight Resources, controlled by Teck Corp., soared to $12 earlier in the week before coming back to $10.63. Drilling continues to find rich ore on the Golden Pond property in Quebec.

Franco-Nevada has had a tough time finding a buyer willing to pay its price for a royalty on Barrick’s huge Carlin gold deposit in Nevada. The issue was steady at $7.50.

Partners Granges Explorations and Abermin Resources continued to suffer from the general malaise in the gold market and from operating problems at the Tartan Lake gold mine in Manitoba. Granges dipped to $3.85 whereas Abermin was quiet at 35 cents .