STOCK MARKETS — Precious metals indexes rise

Gold bullion prices were again weaker, but the slide was at least minor compared with that of last week. Spot prices were off US$1.05 per oz., closing at US$376.45. In spite of bullion weakness, the Toronto Stock Exchange gold and silver indexes actually gained ground, closing at 10,224.56 points, up about 200.

Typical of the advancing issues was American Barrick, which rose $1.25 to close at $33.63. Placer Dome climbed 88 cents to close at $32.50; Echo Bay jumped 88 cents to end the week at $17.25; Franco Nevada rose $2.50 (after losing substantial ground over the past few weeks) to close at $81.50, while sister company Euro Nevada jumped 63 cents and ended the week at $42.50; and Pegasus Gold gained $1.25 to close at $26.50 while Lac ended the week at $11.50, up 25 cents.

At presstime, there was a report of an underground fire at the Hope Brook gold mine in Newfoundland, owned by Royal Oak. Initial indications suggested the fire was not serious. Royal Oak was up 13 cents on the week and closed at $5.75.

CDN-traded Madison Grant Resources recently placed 5 million shares at 3 cents per share to net $150,000. Madison plans a 6-for-1 share consolidation, to be approved by shareholders April 29. By last count, there were 24 million shares outstanding. This little-known stock hovers at about 2-3 cents when it trades (which is seldom). But with some money in the kitty now and a 26% interest in Taylor Rand, it could tidy up its balance sheet and benefit from Taylor Rand’s exploration success — that is, if it has any luck exploring its U.S. Grant gold property in southwestern Montana.

There is an old mill on site and Taylor Rand raised $1.25 million to expand the small reserve base.

Investors were cool to the news that nickel giant Inco is resuming full production at its Ontario and Manitoba divisions. The stock shed $2.37 to close at $32.25 on a volume of 3.1 million shares.

Having successfully acquired a 48.1% stake in Central Crude, Western Quebec Mines closed up 15 cents at $3.25 on slim volume of 85,000 shares. The company hopes to bring Central Crude’s Eagle River property, near Wawa, Ont., into production at some future date. Meanwhile, Central Crude tacked on 19 cents to close at $1.70.

The market appears to have reacted favorably to Metall Mining’s decision to shelve its Izok Lake base metals project in the Northwest Territories. The issue added 63 cents to close at $13.50, just shy of its 52-week high. The stock has been a solid performer despite the ongoing woes of its German parent, Metallgesellschaft.

Having received shareholder approval to subdivide its common shares, Dia Met Minerals closed at $63.75, up $4.25 on the week.

Ego Resources, which is building a plant in northern Ontario to recover cobalt, tacked on 71 cents to close at $2.09 on a volume of 1.5 million shares.

Montreal-listed diamond explorer Exploration Orbite V.S.P.A. lost 31 cents on a volume of 2 million shares, despite news that the company has intersected at least five kimberlites on its Le Tac Twp. property in northwestern Quebec. American Gem rose 85 cents this week to close at $4.10. The company hopes to start mining sapphires from its Montana holdings later this year. Alberta-listed Athabasca Gold Resources also gained ground, jumping 30 cents to close at $1.15, while partner Consolidated Ramrod Gold leaped by $1.37 to close at $9.63. The companies are testing a gold-mineralization iron formation on the Diamoti Lake joint venture in the Territories. Canada Tungsten shot up 41 cents to close at $1.98. A whopping 3.2 million shares changed hands during the week as the stock reached a new 52-week high of $2.15.

Diamond explorer Caledonia Mining rocketed 70 cents to close at $3.60 for the week. The company is exploring four diamond projects in Zimbabwe. Another big mover with a high volume was Pure Gold Resources, which rose 14 cents to close at 48 cents with a weekly volume of 4.8 million shares. TVI Copper was also up this week to close at 85 cents on the week. Investors seem to approve of the company’s acquisition of several gold-copper porphyry properties in the Philippines.

On the losing side, Asia Minerals lost 14 cents to close at 86 cents for the week. Recently, the company announced plans to evaluate another polymetallic deposit in China.