Lack of new information hurts Lac de Gras players

Without any hard information to feed on, Toronto Stock Exchange issues involved in the Lac de Gras diamond play lost some momentum during the week ended June 16.

Nervous investors have been told not to expect BHP-Utah Mines to place a dollar value on gem stones taken from the Dia Met Minerals property in the Northwest Territories.

BHP considers the initial sample too small to be representative of a kimberlite found on the Dia Met claims and as shareholders pondered their next move, Aber Resources dipped as low as $2.15 from $2.30 last week. Lac de Gras player SouthernEra Resources also fell to $1.74 before bargain hunters drove the stock back to $1.94 today, June 17.

Meanwhile, precious metal stocks, riding on this week’s US$4.25 per oz. spike in the price of the yellow metal, skidded backwards as gold fizzled out to close at US$342 per oz. today in London.

However, news of a first gold pour at Royal Oak Mines’ newly acquired Hope Brook mine in Newfoundland helped to keep the stock on an even keel while other gold issues were fading. Royal Oak, which expects to be at capacity by November, closed up 1 cents at $1.84.

High-grade gold samples reported at the Stock Twp. mine near Timmins, Ont., also helped to spark owner St Andrew Goldfields and affiliates Quebec Sturgeon River Mines and Coniagas Mines to new highs.

St Andrew fell back 13 cents today to 70 cents after peaking at 90 cents during the report period. Coniagas was unchanged at 25 cents after trading as high as 40 cents and Quebec Sturgeon River fell to 57 cents from 60 cents. Although gold miner Placer Dome dropped 25 cents to $12.88, the issue seemed to shrug off announcements from Vancouver that Tony Petrina is relinquishing his role as president and chief executive officer to become one of the company’s two vice-chairmen.

The move has been widely anticipated after Placer Dome postponed development at the Mount Milligan copper-gold project, which it paid $258 million to acquire. Other casualties in the gold sector included Hemlo Gold Mines and Lac Minerals, which gave up 25 cents each. Franco-Nevada fell by 63 cents to $27.75.

On the broad market, further cuts in interest rates and signs from the manufacturing sector of an economic recovery failed to keep share values from moving lower. Today, Toronto’s composite 300 index dropped 39.8 points to 3368.19 after 30.2 million shares valued at $362 million were exchanged. Active stocks included Golden Star Resources which recently merged with Robert Friedland company South American Goldfields. Golden Star shot up 15 cents to $3.25 on 12,200 shares. Aur Resources, which also made the active list this week, was down 19 cents to $2.86.

Goldex Mines said it knew of no corporate developments to explain the 30 cents increase in its share price June 16

to $1.45. A 35% owned affiliate of Agnico-Eagle Mines, Goldex gave up all of that gain today to close at $1.15.

Timmins Nickel was stalled at $1.45 after stating its intention to take partner Habsburg Resources to court over the Dome Mountain gold mine near Smithers, B.C. Timmins Nickel denies Habsburg’s charge that it is in default of payments needed to bring the mine into production.

Chilean gold project owner Bema Gold hit bottom this week. Bema, which is working to finance its Refugio gold project, added 2 cents to finish at $1.39 today after falling to $1.27. The high point for the issue this year is $2.60. In other news, Saskatchewan uranium miner Cameco said it is spending $49.8 million to purchase the uranium assets of Agip Resources from its Italian parent. As a result of the deal, Cameco’s stake in the McArthur River uranium project in Saskatchewan increases to 56.43%. Shares of the company fell 75 cents today to $16.88.