MINING MARKETS AND INVESTMENT NEWS — EASTERN MARKETS — Rise in precious metals fails to boost TSE

The Toronto Stock Exchange 300 index lost 15.01 points, or 0.19%, during the report period ended April 21, to finish at 7765.52.

With the exception of platinum, which fell US$11 to US$417 per oz., all precious metals rose in value. Taking the spotlight, however, was palladium, which soared another US$62 to US$380 per oz. Gold jumped US$2.85 to US$311.20 per oz., while silver edged ahead US7cents to US$6.31 per oz.

Accordingly, the TSE’s gold and precious metals sub-group rose a healthy 263.83 points, or 3.6%, to close the period at 7581.92. Reflecting the stronger gold prices, mid-tier producers Kinross Gold and TVX Gold rose, respectively, 10cents to $6.70 and 40cents to $6.

Greenstone Resources, the largest gold producer in Central America, lost 30cents to end the period at $9.50. The company recently released its results for the first quarter, and the market did not receive them well. A total of 31,153 oz. was produced at the company’s mines, which are expected to crank out 233,000 oz. by year-end at an accumulative cash cost of $197 per oz.

Base metal producers enjoyed a good period of trading as nickel and zinc rose a penny each to US$2.49 and US85cents per lb., respectively. Though zinc fell 1cents, lead managed to remain at par with its performance in the previous report period.

The TSE’s metals and minerals sub-index jumped 110.85 points, or 2.7%, ending at 2492.55. Standing out among the senior producers was: Noranda, up $1.95 to $29.10; Cominco, up 90cents to $25.40; and Teck B-series, up 80cents to $21.20. Falconbridge also managed to rise, 55cents to $22, despite lower earnings in the first quarter, compared with those reported for the same quarter of 1996.

In the junior sector, Millstream Mines has increased nearly 100% in value over the past month, and, at presstime, was trading at $1.10. The junior, which trades over-the-counter, is chasing copper-zinc-cobalt-silver zones at its Potter property near Matheson, Ont., and has been successful with six dip holes so far. The company recently hired Yorkton Securities as its financial adviser and is reportedly discussing joint-venture agreements with several majors.

After starting the year above $15, SouthernEra Resources nose-dived during the report period to $8.80 — a drop of $4.10 from the previous period. The company’s troubles arose after De Beers Consolidated Mines signed an agreement with NGS Minerals, the South African company claiming mineral rights to the disputed portion of the M1 kimberlite pipe on that portion of the Klipspringer diamond property owned by SouthernEra and Randgold. The legality of NGS’s claims is before the courts, and De Beers has since stated that its deal is subject to the outcome of that case, which is expected in mid-May.