STOCK MARKETS — Gold stocks steal show on spirited Toronto

Reflecting a long-awaited rally in the gold price, gold shares emerged as the biggest traders on the Toronto Stock Exchange in May, the second most active month in TSE history.

Trading a total of almost 100 million shares, Campbell Resources, Royal Oak Mines, Placer Dome, Lac Minerals and American Barrick Resources took the TSE’s top five trading spots (in that order).

All recorded significant gains over April, with Royal Oak closing the month up 49% to $8.

During the same period, the price of gold climbed by a more modest 10% to US$385 per oz., before settling at the US$370 level.

One seasoned broker attributed the explosive rise in gold stocks, relative to the gold price, to what he called “lack of product.”

Institutional investors in Canada and the U.S. betting on a new bull market had to choose between a limited number of North American gold producers, most of which trade on the TSE.

As the money freed from low-yielding cash accounts and bonds poured into the chosen few, their stock prices started to reflect a much higher gold price. For the week ended June 8, gold shares kept their place among the top traders, with Placer Dome adding $1.63 to $23.38 on a volume of 6.17 million. Gold added US$6 to US$374.75 in New York while the gold and silver index tacked on 119 points to 8,299.

The TSE 300 index finished the week virtually unchanged at 3,862. Gold wavered today and closed at US$371.45 in London. The gold and silver index lost 125 points.

After winning back its right to the Brookbank gold deposit near Beardmore, Ont., Metalore Resources touched a new 52-week high of $17.50 before closing at $14.25 for a gain of $3.75. The company was successful in its appeal of a 1990 ruling that awarded the property to ASE-listed Ontex Resources. On June 3, Cambiex Exploration became the first junior mining company to list on the Montreal Exchange this year. The Cambior affiliate closed the week up 20 cents at $1.

After climbing steadily from 20 cents to a 52-week high of 79 cents over the past few weeks, Pioneer Metals shed 9 cents to 66 cents. President Steven Sorenson was not available for comment on rumors that Pioneer is claiming an interest in ground held by former vice-president of exploration Steven Blusson on the periphery of the Dia Met-BHP block in the Northwest Territories.

The issue lost another dime today.

The product of a recent merger between Plexus Resources and CMP Resources, Kinross Gold hit a new high of $1.25 before closing unchanged at $1.85. The new junior explorer is 25.3%-owned by Dundee Bancorp and 17.2%-owned by Placer Dome.

Dundee added 13 cents to $6.63.

Plans to finance a bulk-sampling program at the Komiss gold property held by Waddy Lake Resources sent Golden Rule Resources down 24 cents to $1.24. Affiliate Waddy Lake, which plans to develop the small deposit in northern Saskatchewan, added 20 cents to 63 cents.