STOCK MARKETS — Markets swoon over Swan, golds lose ground

The Toronto Stock Exchange saw an active trading period, including a wild trading day and a record level for the TSE 300 composite index, during the period ended April 16. The index closed up at 5,085.36, an increase of 78.07 points, or 1.6%, from the previous week.

Trading was heavy all week, with three days posting total volumes exceeding 100 million shares. The most active day was April 16, when just over 134 million shares crossed the counter, making it the fifth-busiest day in the market’s history.

The Canadian dollar remained strong against the main foreign currencies, picking up 0.09 cents against the U.S. dollar to close at US73.69 cents on April 16. The Loony continues to pull higher against European currencies, making big gains this week against the pound, the mark and the Swiss franc.

London gold prices took a long slide, dropping $3.15 to US$391.40 per oz. The yellow metal fell $2.10 between the afternoon fix on April 16 and the morning fix on April 17. Platinum also lost ground, falling to US$401.75 for a loss of $4.25 on the week. Silver’s woes continued with the white metal down another 15 cents to close at US$5.31 per oz.

The TSE gold and precious metals subindex felt the chill wind from the bullion market and retreated 215.14 points to close April 16 at 12,326.53, a loss of 1.7% from the previous week. Placer Dome closed at $38.38, Barrick Gold at $41.25, and Echo Bay Mines at $17.88, all down 88 cents for the trading period.

A few golds rose, with Kinross Gold adding 25 cents to close at $11.50, and TVX Gold picking up 12 cents to reach $12. Bema Gold, up 50 cents to $5.25, announced new results from Chile’s Cerro Casale deposit, which it shares with affiliate Arizona Star Resource (VSE).

The base metals had a positive week, with both nickel and copper up sharply on the London Metals Exchange. Nickel rose 9 cents to reach US$3.69 per lb. in the April 17 on the London Metal Exchange, while copper was better by 4 cents at US$1.17. Zinc and lead both lost 1 cents, leaving zinc at US47 cents and lead at US37 cents per lb.

Toronto base metal stocks were buoyant, with the metals and minerals sub-index chalking up a new high of 5,548.64 at the close of trading on April 16. For the 5-day trading period, the sub-index was up 206.76 points, or 3.9%.

Diamond Fields Resources was up $1 to $40.25 on the strength of a rise in Inco, which added $2.12 to close at $45. All the other base metals surged, with Falconbridge picking up $2.75 to reach $31.12, while parent Noranda took on $2.25 to close at $31.25. Inmet, at $11, was 75 cents higher in active trading, and Rio Algom saw its price rise $1.62 to $27.75.

Black Swan Minerals saw 55 million shares change hands, including 38 million (or 60% of its capital) on the final day of the period. Drill results at its Cata Preta property in Brazil set punters’ pulses racing, and the stock gained 80 cents to close at $1.05.

Pure Gold Resources was up 7 cents to 27 cents and traded heavily following news that Ashton Mining of Canada was moving a drill to a Northwest Territories diamond property which the companies share with Noront Resources.

Ashanti Goldfields, newly listed on the New York exchange, announced a takeover bid for TSE-listed Australian miner Golden Shamrock Mines. Golden Shamrock was up 1 cents to $1.29; Ashanti’s bid has a market value around $1.34 per share.

Investor darling Arequipa Resources tacked on another $2.75 to reach $16. The company’s extensive land package in Peru has attracted considerable attention, as well as a number of majors as joint-venture partners.

Campbell Resources was up 6 cents at $1.70 after releasing results from its first quarter. The company reported increased gold production, earnings and cash flow compared with results a year earlier. In particular, gold production increased 19% to 33,300 oz. (from 28,000 oz. in the 1994 first quarter) at the Santa Gertrudis mine in Mexico, and the Joe Mann operation in Canada.