STOCK MARKETS — Gold issues help fuel a record trading

Diamonds may have been the most talked about investment at the recent convention of the Prospectors and Developers Association of Canada in Toronto, but while miners were busy promoting “bull’s-eye” targets and fondling kimberlite core, golds stole the limelight on the Toronto Stock Exchange.

On March 30, the gold and silver index shot ahead by 317 points, or 5.2%, as gold added US$4.60 to US$337 per oz. The rally continued today, March 31, as gold picked up another US$1 in London and the index gained 86 points to 6481.

Traders attribute the rise in the gold price to a surge in demand created by jittery stock and bond investors and bullion-buying in Europe. Short sellers added fuel to the fire as they raced to cover their positions on the futures market.

Partially as a result of this growing enthusiasm for gold stocks, the TSE broke previous records in terms of volume and value, in March. The monthly volume topped one billion for the first time in the exchange’s history. Trading during the first quarter reached a record 2.9 billion shares. The value of shares traded in March topped $10.5 billion, surpassing the old record of $10.49 billion set in October, 1987.

The Montreal Exchange also recorded its most active month ever, as $2.8 billion worth of stock changed hands.

During our report period (the week ended March 30), the TSE 300 composite index lost 17.6 points. Among the most active traders were Lac Minerals, unchanged at $9.50 on a volume of 9.3 million; Placer Dome, up 88 cents to $18.88; and American Barrick Resources, up 75 cents to $21.75. Barrick continued to advance today, closing up 50 cents at $22.25. Daily volume remained unchecked at 57.4 million as the TSE added 16.3 points to 3602.

Tacking on 25 cents to $14.25, Cambior announced it will develop the Carlota copper-oxide deposit in Arizona, where proven and probable reserves stand at more than 100 million tons grading 0.45% copper. Commercial production is to begin in the first quarter of 1995.

The expanding producer is implementing a shareholder rights plan to discourage unfair takeover tactics.

Diamond stocks turned in a mixed performance with Dia Met Minerals, the flagship of the Lac de Gras play, losing 12 cents to $43.88 in quiet trading. Lytton Minerals, fueled by a kimberlite intersection on its claims north of Lac de Gras, continued to defy a growing number of short sellers. It added 25 cents to $3.65 on trades valued at $7.2 million.

Tyler Resources, withholding comment on rumors of a kimberlite find and an expanded program on its claims south of Lac de Gras, picked up 15 cents to $1.75.

Pure Gold Resources, which will begin flying aeromagnetic surveys over its claims this month, added 5 cents to 46 cents.

Thunderwood Resources, working with partner Aur Resources on diamond claims northwest of Yellowknife, touched a new 52-week high of 90 cents before closing at 87 cents for a gain of 19 cents. Aur added 5 cents to $3.60. With their principal officers busily scribbling notes at a 14-hour diamond short course and later outlining details of the Lac de Gras play to PDAC convention delegates, Aber Resources and SouthernEra Resources dipped to $2.25 and $4.88, respectively.

Although convention organizers were delighted with the overwhelming response to the diamond lectures, one broker remarked that the cheek-to-jowl sessions were a signal to him that the solid run-up in the junior diamond stocks, just over a year old, may be reaching its peak.

Announcing the recovery of a macrodiamond from its Guigues Twp. pipe in Quebec was ME-listed KWG Resources, which slipped 10 cents to $2.65. Touching a new low of $2.05 before closing at $2.20 for a loss of 80 cents was Arimetco International. The copper producer says it will not renew a contract to supervise the operations of Breakwater Resources for a second year. Breakwater lost 2 cents to 21 cents.

About to resume drilling at its Verneuil Twp. property in northwest Quebec, Freewest Resources closed unchanged at $2.55. The first holes will follow up a 20-ft. shear zone intersection that returned 0.29 oz. gold per ton.