STOCK MARKETS — Base metals add vigor to Toronto Exchange

Fueled by increases in base metal prices, the Toronto Stock Exchange 300 composite index gained just over 100 points to close at 4,269.15 for the week ended May 17.

The mines and metals subgroup, lead by a US4 cents-per-lb increase in the price

of copper and a US21 cents-per-lb. gain in the price of nickel, gained more than

7% to finish at 3,702.03.

The gold and silver subgroup remained relatively unchanged, adding just over 30 points to end at 9,620.73. The London afternoon gold fix for May 18 was US$379.60, down 90 cents, while the afternoon fix for silver rose US17 cents to finish

at US$5.44.

On May 17, the Bank of Canada rate edged downward by 16 basis points to 6.45% — this despite a 0.5% hike to 4.25% in the U.S. Federal Reserve Board’s fund rate.

A recent decision to grant patents to the Goldstrike mine in Nevada failed to boost the share price of American Barrick. The major closed down 38 cents to end

at $31.63. Related royalty-owner Franco-Nevada gained $2.75 to $73.75, while sister company Euro-Nevada managed a 25 cents gain to end the week at $37. Barrick’s receipt of the patents met with strong opposition from U.S. Interior Secretary Bruce Babbitt. As a result, speculation has surfaced to the effect that other Canadian producers seeking similar arrangements — namely Echo Bay and Placer Dome — might not be as lucky as Barrick. Echo Bay shed a quarter to close at $14.63, while Placer gained 75 cents to close at $29.75.

Other senior gold producers were relatively unchanged on moderate-to-weak volumes. Lac Minerals rose 13 cents to finish at $11.63 and Hemlo Gold Mines lost

13 cents to close at $12.37.

Kinross Gold continues to shine, gaining 63 cents and hitting a new 52-week high

before settling back to $7.25. At its annual meeting in Toronto, the company announced plans to expand its exploration efforts into Latin America. The recent rallies in copper and nickel gave a boost to base metal issues. With the red metal hovering near US$1, senior base metal producers are attracting renewed interest among investors. Noranda jumped $1.50 to close at $26.75, while Cominco shot up $2.75 to close the week at $23. The B shares of Teck gained an impressive $1.75 to end the week at $24.63 and Rio Algom gained $1.38 to close at $25.13

Earlier in the week, reports of a possible strike at the Sudbury, Ont., operations of Inco sent the price of nickel soaring. This had a complementary effect on the nickel giant’s stock, which rocketed to a closing high of $35.75, up $3.13.

Meanwhile, beleaguered Denison Mines continues to struggle, and recent news has not been exactly good. The Ontario Securities Commission refused to grant the company an extension needed to file the 1993 annual and 1994 first-quarter financial statements. The end result is that all classes of Denison shares will be temporarily suspended from trading on or about May 20, until audited financial statements are filed. Denison A shares lost 4 cents to

close at 12 cents, while both preferred classes lost ground to close at 15 cents each.

On a more positive note, some junior gold exploration companies added value over the week. Alberta-listed BRE-X Minerals hit a new 52-week high, gaining 46 cents to end the week at $2.50. The company is exploring several properties in

Indonesia and is looking for a joint-venture partner.

Pangea Goldfields released results from its winter drill program on the Fenn-Gibb property near Matheson, Ont. Five mineralized zones were intersected in the first-phase program, which totaled 19,800 metres. A second, 10,000-metre program is to begin shortly. The shares of Pangea ended the week at $2.90.

Several junior diamond issues have sprung to life in response to the release of new results of kimberlite samples. Ashton Mining announced a third kimberlite discovery in the Attawapiskat River region of the James Bay Lowlands. The project is a joint venture between KWG Resources and Spider Resources. Ashton, entitled to earn a 51% interest in the venture, experienced a 21 cents rise in its share price to $2.20. KWG, with a 70% interest,

vaulted $1.04 to close at $3.35, while Spider rose 20 cents to end at 39 cents.