STOCK MARKETS — Golds lead Toronto market higher

The Toronto Stock Exchange moved higher during the report period July 31-Aug. 6, with the TSE 300 composite index finding its way back above 5,000 for the first time since July 19. The index closed at 5,024.26, up 123.11 points (or 2.5%) from a week before.

Golds were the strongest stocks on the exchange, with consumer products and transportation and environmental issues also beating the board. The metals and minerals sector performed near the market average.

The Canadian dollar rose 0.07 cents against the U.S. dollar over the report period, finishing at US72.87 cents by noon on Aug. 7. It was also fractionally higher against the other major foreign currencies.

Gold added $2.75 this week on London bullion markets, with the morning price on Aug. 7 fixed at US$388.25 per oz. Platinum pushed up another 50 cents to US$400 per oz. but silver was off 6 cents to US$5.05 per oz.

The TSE gold and precious minerals sub-index picked up 8% on the week, finishing 860.48 points higher at 11,617.80. The most actively traded issue on the index was TVX Gold, which added $1.05 to close at $11.

Golden Star Resources was the big news among the golds, adding $6.60 to close at $24.60 on the strength of results from properties in the Guianas.

Active trading continued in Bema Gold, which was up $1 to $6.20. Both the big producers had strong price moves, with Placer Dome up $3.50 to $33.80 and Barrick Gold up $2.80 to $39.25.

Greenstone Resources was up $2.25 to $18.05 in active trading, while Agnico Eagle Mines recovered much of last week’s loss, adding $1.95 to close at $21.55.

The London Metal Exchange had a quiet week, with all the base metals trading in a narrow range. Nickel was up 4 cents to US$3.13 per lb., though indications are that the price is soft. Copper was up 1 cents to US93 cents, and zinc and lead were both unchanged.

The TSE metals and minerals sub-index was up 104.46 points to 5,107.18, with Diamond Fields Resources the most heavily traded at $40.75, up $1.65. Inco was also higher, up 20 cents to $42.90, following news that the two companies had settled a lawsuit that was threatening their merger plans.

Inmet Mining was actively traded, losing 5 cents to close at $9.55, while Noranda added 50 cents for a close of $28.10. International Curator was up $1.05 to $13.55, and Gibraltar Mining fell 65 cents to $5.40.

Interest in the junior exploration stocks appeared to rebound during the week, with Montreal-listed Vior Mining by far the most active. Vior added 42 cents to close at $1.07, with 11.2 million shares traded. Speculation about the reason for the price move continued, but there has been no announcement from the company.

William Resources was up 11 cents to $1.50, its volume of 3.8 million shares leading the junior board in Toronto. The company has completed its purchase of the Jacobina mine in Brazil.

Arequipa Resources was 25 cents higher at $28.15, $1.15 higher than the takeover offer Barrick has on the table. Arequipa’s board has not yet replied to the offer, but drilling continues at the Pierina property in northern Peru.

Another notable on the TSE was Asia Pacific Resources, which was 70 cents higher at $9.55. A feasibility study on its Udon Thani property in northeastern Thailand concluded that a 2-million-tonne-per-year mine at the property could have capital costs of around US$400 million and operating costs of less than US$30 per tonne of potassium chloride produced.

Montreal-listed Greenhope Resources was down 20 cents to 70 cents, while Mimiska Mines slipped 5 cents to 19 cents. The companies are joint-venture partners at a gold property near Lebel-sur-Quevillon, Que. Opawica Explorations was off 40 cents at $1.50. The company had released results of drilling at a property in Ghana.