STOCK MARKETS — Golds advance as base metals stagnate

The Toronto Stock Exchange enjoyed a steady rise over the period ended April 30, with the TSE 300 composite index reaching a record 5,154.32 before settling back to close at 5,146.47, a modest gain of 29.53 points (0.6%) on the week. Resource and transportation issues provided most of the week’s gains, but when the market began to sag on April 30, the golds stepped in to prop up the TSE.

The Canadian dollar was steady against its U.S. counterpart for most of the week and finished at US73.45 cents on April 30, up US0.03 cents from the week before. The Loony continued its strong run against the European currencies but lost ground against a surging Japanese yen.

Precious metals markets were lower, with the London gold fix on May 1 set at US$391 per oz., down 10 cents on the week. A sudden spike on April 25 sent TSE gold stocks skyward but the price settled back into the $390-$392 range by the following afternoon.

Platinum fell $2.75 on the week, for a morning price of US$400.50 per oz.

Silver, at US$5.33, was up 1 cents.

The TSE gold and precious metals sub-index slid after responding to the April 25 rise in the gold price but rallied on April 30 to close at 12,348.23, up 122.98 points on the week. TVX Gold was once again the most actively traded issue in the group, losing 25 cents to close at $10.75. Placer Dome was also off 25 cents, to $37.88, Barrick Gold rose 62 cents to $41.75, and Kinross Gold added 38 cents to finish the week at $11.75.

Aber Resources rose 75 cents to $21.25 on the strength of results from its Diavik diamond project with Kennecott.

It was a quiet week on the base metal markets, with copper up 1 cents to US$1.21 per lb. and nickel down 5 cents to US$3.56. Zinc slid 1 cents to US46 cents and lead was unchanged at 37 cents.

Inco was up 50 cents to finish the week at $46 on a volume of 3.9 million shares. Diamond Fields Resources wasn’t far behind, with 3.87 million shares changing hands. It rose $1.50 to $41.88. Noranda was 50 cents lower at $31.38 and Cameco was unchanged at $72.88. Over on the chemicals board, potash miner Potash Corporation was up $10.75 to $97, and Viridian (formerly Sherritt) was up 25 cents to $18.50.

Bre-X Minerals broke the $200 barrier on April 30, posting a $12.38 gain on the week. Montreal-listed affiliate Bresea Resources was off 38 cents to $15.25. The value of Bre-X will likely boost the stock to the gold index soon. Another TSE listing that showed it could belong on the index is Greenstone Resources, which traded 4.8 million shares. It closed up 75 cents at $12.88.

Arequipa Resources is on roll, adding $4.25 to close April 30 at $19.75. Asia Pacific Resources, which has potash interests in Thailand, was off 12 cents at $10.50.

Junior Moss Resources traded heavily on the TSE, with 8.1 million shares crossing the floor. Speculative activity surrounding CDN-listed Fortune Minerals moved Moss up 66 cents to $1.29 when Fortune drills intersected mineralization on its property near Mazenod Lake, N.W.T. Fortune itself went on a wild ride on the CDN, rising as high as $33.50 before closing the week at $29.

Another CDN listing, Gregor Goldfields, was up 12 cents to close at 27 cents on the strength of a recent property acquisition in the area. Vancouver juniors Avalon Ventures and Starcore Resources also showed big gains.

Nuinsco Resources was up 42 cents to close at $1.89. A nickel-copper-cobalt intersection at its Rainy River project in northwestern Ontario sent the stock to $2.55 earlier in the trading period.

Black Swan Gold faded another 1 cents to 69 cents with 7 million shares traded. Pure Gold Resources, driven by speculation over drilling at its diamond property in the Northwest Territories, was up 2 cents to close at 30 cents.

William Resources saw 8 million shares trade and picked up 9 cents to close at $1.75.