STOCK MARKETS — Investors unflustered as high-flying gold

It seems that every time gold seriously assaults the $US400-$410-per-oz. trading range, it is rebuffed. It happened last year, when gold drove through the $US410-per-oz. mark and it happened again this past week.

No sooner had our issue for that week been printed when gold took a nosedive. Over the week it lost $US7.20.

Gold bugs, however, can take heart. After it went through $US410 last year, the yellow metal dropped like a stone to under $US370. It hasn’t taken that kind of a bath (yet?).

However, it just might if all the world’s central bankers thought like Canada’s, who last year sold a record 3.9 million oz. (up from 3 million in 1992 and 1.8 million in 1991). The bearish mood at our central bank might make the government’s

deficit picture look slightly brighter, but it inflames the gold miners of the land.

Nevertheless, investors in the senior producers didn’t head for the exits when gold turned down during our report week. American Barrick ended down nearly a dollar at $39.13; Echo Bay lost 25 cents to $18.75; Placer Dome was off 50 cents to $35; Pegasus Gold lost $1.38 to $31; Franco Nevada gained 25 cents to $94; Euro Nevada was flat at $49.50; and Lac held firm at $11.88. Cambior actually rose nearly $2 to $22.63, perhaps on news that it had acquired a Peruvian gold play (see last week’s front page).

TVX Gold traded heavily — close to 10 million shares — following an offering of 23 million treasury shares. It closed the week down 13 cents at $9.13.

Among the junior explorers, Regional Resources, a company in the Conwest fold, recently signed a deal with a Vancouver junior, GWR Resources, over a copper prospect in south-central British Columbia. Regional President Graham Farquharson tells us Regional’s recent market performance (a 2-day gain of 64 cents followed by a sizeable drop) was likely sparked by news of the deal. It closed our report week down 20 cents at $2.

Farquharson emphasized it was a grassroots project. Regional plans to drill the prospect this year. Shortly after the deal was signed, GWR rose to $1.20 from a low of 94 cents before closing at $1.

During the week, Opawica Resources soared $1.40, closing at $2. Up until mid-November, this stock hardly traded at all. It was quoted at around 30 cents. Ever since mid-December it has been gaining 5 cents, 10 cents or 20 cents per week — that is, until this most recent phenomenal gain. Trader Resources also touched new highs — $1.15 to be precise. A subsidiary of Royal Oak, Trader is buying Mountain Minerals, a producer of high-quality industrial minerals. Trader will cover the $8-million purchase with a forthcoming financing. After hitting its new high, the stock ended the week up 6 cents to $1.

Central Crude, whose parent Hemlo Gold is selling its Central holdings, stayed flat this week, closing at $1.25, although a brief flurry took it to $1.48. Word has it that Hemlo has received several bids.

Montreal-listed Coleraine lost 17 cents over the week, after the company learned that Metallgesellschaft, the troubled German conglomerate, will not proceed with its part of a chromite project in the Eastern Townships of Quebec. As readers may learn from a front page report, the German company is beset with serious financial

problems.

In spite of its parent’s problems, Metall Mining, the Canadian subsidiary, continues to hold its own. Plenty of shares (nearly 3.3 million) traded hands over the week, but Metall held firm at $11.50, the point at which it had begun the week.