MINING MARKETS & INVESTMENT NEWS – EASTERN MARKETS — Golds pull down broad market

The Toronto Stock Exchange 300 index fell 137.59 points during the report period March 17-23, ending the week at 6,482.33, or 2.1% lower.

Resource stocks offered little help, with the gold and precious metals sub-group dropping 108.59 points to 5,552.95 and the metals and minerals sub-index climbing a modest 2.27 points to 3,230.59.

Gold regained some of its lustre, rising 35 cents to US$284.25 per oz. on the morning of March 24. This, however, failed to repair the damage recently inflicted by U.S. President Bill Clinton’s endorsement of gold sales by the International Monetary Fund.

Among gold producers, Placer Dome fell 60 cents to $17.40 and Kinross Gold slipped 12 cents to $3.21. Bucking the trend was TVX Gold, which rose 4 cents to $2.

Although Barrick Gold fell 20 cents to $27.30 during the report period, it had recovered by presstime following the announcement of its intention to acquire South African-based Randgold Resources’ half-interest in the Golden Ridge deposit in Tanzania. The news trickled over to remaining stakeholder Pangea Goldfields, which soared 23 cents to trade at $2 by presstime.

Uranium and gold producer Cameco jumped $4.25 to $35.25 on rumours that it and two partners may soon ink a deal with Russia to buy uranium used in that country’s nuclear weapons.

Copper climbed 2 cents to US64 cents per lb. in response to favourable economic forecasts for Asia. Following suit, lead and zinc each gained a penny, though nickel plunged 9 cents to US$2.29 per lb.

Volume leader Inco dropped $1.15 to $20.95 on a volume of 10.6 million shares. Also pinched by the lower nickel prices was cross-town rival Falconbridge, which fell 60 cents to $18.25.

Other base metal miners suffering losses included: Noranda, off 90 cents at $16; Cominco, off 60 cents at $22; and Rio Algom, down 70 cents at $16.30.

Boliden resumed production at its Myra Falls zinc-copper operation on Vancouver Island. The miner ended the period at $1.80, for a gain of 5 cents.

In another wave of heavy trading, Nuinsco Resources slipped 93 cents to $1.90. The frenzy began last period after the market was underwhelmed by drill results from its Lac Rocher property in northern Quebec.

Golden Rule Resources fell 2 cents to 22 cents. The Ontario Securities Commission is questioning trades made by its president, Glen Harper, in the early months of 1997, when impressive results were released for the now-infamous Stenpad gold project in Ghana. At presstime, the junior was off another 4 cents.