MINING MARKETS AND INVESTMENT NEWS — Eastern markets — Golds rise with stronger price as dollar hits all-time low

The Toronto Stock Exchange 300 index climbed a modest 0.3% during the report period July 15-21 to finish at 7,409.43. The gold and precious metals sub-index rose 71.14 points to 5,939.03, while the metals and minerals sub-group fell 25.23 points to 3,380.01.

With the Canadian dollar sinking to record lows of late, cries of an imminent currency crisis are being sounded throughout the country. Hopes of help from south of the border were quashed on July 21 when Allan Greenspan, chairman of the U.S. Federal Reserve, announced that he would raise interest rates if inflation accelerates beyond predictions. Consequently, the loonie dropped to an all-time low of US66.87cents on July 22.

The value of precious metals jumped during the period: gold rose $1.60 to US$294.40 per oz.; platinum climbed $1.50 to US$384.00 per oz.; and silver edged ahead 33cents to US$5.65 per oz. Also faring well were nickel, which clawed back 13cents to US$2.06 per lb., and copper, which gained 2cents to end the period at 76cents per lb. Lead dropped a penny to 24cents per lb., while zinc remained unchanged at 47cents per lb.

Barrick Gold took top spot as far as value and volume were concerned. The issue rose 35cents to $27.25. The company recently announced strong gold production and a 23% increase in earnings in the first half of 1998.

Other gainers included: Placer Dome, which rose 30cents to $16.60; TVX Gold, which rose 11cents to $4.19; and Meridian Gold, which rose 70cents to $7.00.

Meridian has gained $2.75 in the past two weeks thanks to news of a production decision at its El Penon gold project in northern Chile and an improving balance sheet.

Performances by base-metal producers were mixed, with some showing strong improvements and others diving for cover. Better nickel and copper prices gave Noranda a jolt of 50cents, boosting it to $23.85. Falconbridge rose 40cents to $16.30. Similarly, Cominco climbed 40cents to $21.50. Going the opposite direction was Inco, which lost 45cents to end the period at $18.40.

As part of its strategy of focusing on copper and zinc, Boliden has announced it is in talks over the sale of its half-interest in the Sukhaybarat gold mine in Saudi Arabia. The major declined to comment whether its partner in the project, Saudi mining company Maadin, was one of the interested parties. Boliden dived $1.15 to settle at $6.50.

Farallon Resources was up 50cents to $2.80 as British Columbia’s Supreme Court dismissed a lawsuit launched by Summex Mines and John Torok more than two years ago. In short, the decision upholds Farallon’s 100% title to the Campo Morado polymetallic mineral concessions in Mexico’s Guerrero state.