STOCK MARKETS — Golds carry Toronto market up for the holidays

The Toronto Stock Exchange set another record high on Jan. 2, spurred by strength in the banks and golds. The TSE 300 composite index closed at 4,767.82, up 57.12 points or 1.2% from the close on Dec. 22.

The Canadian dollar was stronger against most of the major foreign currencies this week, rising to US73.93 cents by noon on Jan. 3. The bank rate had dipped 27 basis points following the treasury bill auction on Dec. 27.

Precious metals prices moved higher in London, as the bullion traders fixed gold at US$390.50 per oz. on Jan. 3, up $3.60 on the day and $3.15 from the week before. Silver was carried along to a price of US$5.35 per oz., a gain of 19 cents. Only platinum moved against the tide, taking a $1 loss for a Jan. 3 fix of US$406 per oz.

Gold stocks danced to the tune the metal markets played, with the TSE gold and precious metals sub-index posting a gain of 387.51 points on Jan. 2, after a weak performance over the previous five trading days. The sub-index closed at 10,801.12 on Jan. 2, up 344.82 points (3.3%) from Dec. 21.

Most active among the golds was Barrick Gold, which added 62 cents to close at $37.12. Other heavy traders included TVX Gold, up 38 cents to $10, and Echo Bay Mines, up 50 cents to $15, and Miramar Mining, up 12 cents to $7. Some of the bigger price moves belonged to Prime Resources, which gained 62 cents to close at $10, Placer Dome, which rose 75 cents to $34.62, and Euro-Nevada Mining, which was $3.38 higher at $51.75.

London base metal prices were all lower, but nickel was hit hardest, falling 32 cents to US$3.34 per lb. Copper was down 4 cents to $1.25, and lead and zinc were also lower. The metals and minerals subindex closed at 4,944.91, down 33.11 points or 0.7% from the Dec. 21 close.

Inmet Mining had the most active trading week; 5.2 million shares changed hands and the price fell 38 cents to $9.88. Nickel producer Sherritt continued to see lots of action on the floor, losing 25 cents to close at $17.38. Other nickel-sensitive issues were down in relatively heavy trading, with Inco off 50 cents to $45.50 and Falconbridge down 50 cents to $28.88. Diamond Fields Resources, rumored to be a takeover target, saw a 75 cents gain and finished the trading period at $26.38. Other base metal miners were unchanged or fractionally lower, except for Cominco, which added 50 cents to close at $28.38.

Increased resource figures at the Meadowbank gold project in the Northwest Territories helped partners Cumberland Resources and Comaplex Minerals tack on impressive gains this week. The partners announced that the Third Portage and Goose Island gold deposits have a combined mineral resource inventory of more than 800,000 oz., more than triple the previous estimate. Both companies hit new 52-week highs before edging back. Cumberland tacked on 20 cents to close at $4, while Comaplex leapt by 50 cents to end at $3.75.

Montreal-listed Minorca Resources announced it is drilling its Rodeo Creek property on the Carlin trend in Nevada. The 4,000-ft. program will test several gold targets on a fault structure coincident with geochemical anomalies. Minorca shares rose by 30 cents, hitting a new 52-week high of $1.24 before rolling back to $1.18.

Drill results from a porphyry copper prospect in Peru failed to impress shareholders of Arequipa Resources as the shares lost 29 cents to close at $2.25.

Goldstake Exploration, which came to a boil last week, was allowed to cool slightly; the stock was off 11 cents to $1.51. Another stock with Indonesian interests, Montreal-listed Mispec Resources, came in 4 cents lower at $1.26.

North American Palladium added $3.25 to close at $9, on a volume of 131,500 shares. Cheni Resources had its second strong week on speculative buying, rising 21 cents to 56 cents.