Toronto Stock Exchange (March 16, 1992)

Shares of Aber Resources emerged among the volume leaders during the week ended March 10 as the diamond explorer flew an airborne survey over its 420,000-acre property in the Northwest Territories.

As the Aber ground is close to an area where Dia Met Minerals and BHP-Utah are bulk-sampling on another diamond play, hopes that Aber will find commercial diamonds drove the stock up 25 cents to $1.38 on a volume of 1.3 million shares.

But in a week when share prices were being driven by listless metal prices, concern over rising unemployment and a spike in interest rates (to 8.25% from 7%), Aber was one of the few winners.

Without any help from gold, International Corona fell 75 cents in the report period to $3.63 before rebounding to $3.85. Trading was halted, March 10 to allow the Vancouver company to announce new financing proposals including a $50-million share sale, a $50-million gold loan and the possible issue of $50-million worth of convertible debentures.

LAC Minerals, which ranked second on the volume listings with 1.8 million shares, is reducing its semi-annual dividend to 5 cents from 11 cents payable April 24 to shareholders of record April 15. Having paid out $25 million in dividends during 1991, LAC is making the move to save cash in the face of the stalled gold price. LAC ended the week at $8.13, up 13 cents. Today, March 11, the yellow metal closed at US$349 per oz. in London, after falling by US$1.20 during the report period. After a brief respite, the downward trend in share prices also continued today as the composite 300 index fell 26.36 points to 3503.57 on a volume of 33.2 million shares. The value of shares traded was slightly more than $300 million. While platinum climbed by US$2.50 per oz. to US$363.25, the other metals remained quiet this week.

Shareholders of Curragh Resources saw the value of their shares decline after the zinc-lead-coal miner reported a net loss for 1991 of $98.3 million or $3.06 a share, compared to a profit of $32 million in 1990. Curragh closed down 5 cents today at $3.25, 25 cents below the price paid by Sprott Securities when it crossed 1.6 million shares earlier in the week. Vancouver-based Cominco fared better after pulling out of a consortium that is spending $326 million to develop the massive sulphide project in Quebec of Aur Resources (TSE) and Societe Miniere Louvem (TSE).

Down 13 cents today to $20.63, Cominco will retain its share of a combined 21% stake in Aur Resources, accumulated with help from Vancouver affiliate Teck. But due to growing financing obligations, Cominco will let Teck do it alone in paying Aur $15 million in cash and contributing $55 million toward the project in return for a direct 25% stake in Louvicourt.

Aur added 5 cents to finish at $2.38. The Teck A shares were unchanged at $17.50 while the B shares jumped 13 cents to $17.88.

Although Joutel Resources was active this week, trading over half a million shares, a spokesman for Aur said investors may have to wait a while for news on the drilling program at copper-zinc joint venture at Joutel, Que. The Joutel issue was unchanged today at 13 cents.

Meanwhile, Minnova has so far failed to intersect any new gold zones while drilling to earn a 51% stake in Freewest Resources’ Benoit property near Miquelon, Que. However, results from 16 holes confirm the continuity of the known zone and Minnova is now testing the zone to a depth of 1,300 ft. Freewest gave up some ground today, closing down 10 cents at $3.40. Copper oxide specialist Arimetco International, a darling of the investment community, fell 15 cents to $4.85. The high for the year is $5.13.