STOCK MARKETS — TSE gold and silver index rises to the

The Toronto Stock Exchange gold and silver index very nearly revisited the high set late this summer of 10,114.96. Late in our report period, on Oct. 26 to be precise, it came within a hair of that level at 10,114.38. Curiously, the gold price itself had dropped nearly US$3 over the report week, closing at US$368.65.

Representative of the precious metals index rise were American Barrick, up $2.50 to $36.50; Agnico Eagle, up $1.25 to $19.75; Euro Nevada, up $3.13 to $36.50; and Franco Nevada, up $3.50 to $75, the level at which a recent offering was priced.

On the base metal side, Noranda subsidiary Brunswick Mining & Smelting hit a new low of $7.50. No need to scratch your head over the cause. Abysmal base metal prices say it all.

However, it wasn’t all negative news for Noranda this week. Its 50%-owned Falconbridge unit confirmed that the Kidd Creek orebody extends at depth (see front page). On the day of the announcement, Noranda stock rose nearly 50 cents. It ended our report week down, however, at $20.88, a loss of about 63 cents.

Base metal giant Cominco delivered bad news to the market

its third-quarter loss was $70.2 million, bringing the 9-month loss to $123.3 million. The third quarter could have been worse but for the sale of Aberfoyle for an after-tax gain of $39.1 million. Cominco was down 25 cents to $16.13.

Inco also would have lost money during the latest quarter had it not been for proceeds from its sale of former subisidiary TVX Gold. Inco’s third-quarter net profit was nearly $130 million. Minus the TVX proceeds, Inco would have lost nearly $37 million in the quarter. Its shares were down 63 cents at $26.75.

Among the juniors, Greater Lenora posted a good run, rising 17% in a single day of trading to $1.30. A call to Lenora promoter Robert Kasner in his Kirkland Lake office revealed he has been dealing for Mexican and Honduran properties in recent forays south. Heap-leach deposits are on his shopping list in both countries. But he says property-holders in Mexico want “a lot of money.” They won’t trade for stock nor accept a net smelter return (NSR), so small deposits are not particularly attractive from Kasner’s perspective. Why? Same old story — wary property-owners demand a fistful of cash up front. Greater Lenora also holds the old Box mine property in northern Saskatchewan (known as the Goldfields project). A “Colomac-style situation,” Kasner says it needs “US$400 gold to make it really sexy.”

About a month ago, Lenora topped the $1.80 mark. This came on the heels of a recommendation by a U.S. newsletter writer.

Golden Rule reports that its 54%-owned Waddy Lake Resources received the environmental go-ahead for an underground bulk sample at the Komis gold deposit in northern Saskatchewan. Only 60 miles from the Jolu mill, this deposit has an estimated 334,000 tons grading 0.467 oz. gold per ton. Golden Rule President Glen Harper is hoping the 10,000-ton sample will pave the way for commercial production by late 1994.

In the diamond stocks, Redaurum was active this week. Redaurum is a diamond stock with a difference — it can claim actual production of 60,000 carats this year. They were sold in Antwerp. No revenue figures have been disclosed from this pilot plant in Zimbabwe, but the best gem-quality stone sold for $120,000. Redaurum is gearing up for 130,000 carats per year and holds six million acres with exploration potential in Zimbabwe. President Patricia Sheahan says the heavy media separation (HMS) plant, operating by year-end, will boost output and ensure that any large stones will not be broken. The stock closed the week up 5 cents at $1.17. (At presstime on Oct. 27, it had climbed to $1.30.)

Scintilore, the company that’s bringing suit against John Larche and Don MacKinnon (the Hemlo prospectors), rose 28 cents during the week to close at $2.65. The case is now at the stage of Examination for Discovery. Wheaton River was hot again this week, gaining 75 cents to close at $4.25. Investors were less impressed with Tri-Origin, a junior with an advanced exploration play in Australia and a diamond drill prospect near Sault Ste. Marie, Ont. It lost 60 cents to close at $3.60.