STOCK MARKETS — TSE has another bad week as metal prices continue slump — Yamana rises on impressive assay results from silver discovery in Argentina

During the report period Feb. 18-24, the Toronto Stock Exchange 300 index lost 12.21 points, or 0.18%, to end the week at 6948.25.

The Canadian dollar climbed 57 basis points against its American counterpart, finishing at US70.27cents. The dollar also gained ground on the pound, but lost some on the deutschmark and yen.

Gold had another dismal week, dropping US$5.50 from the previous report period and ending at a London morning fix of US$292.30 per oz. on Feb. 25.

Silver was also down, falling 38cents to US$6.34 per oz., as was platinum, dropping $2 to US$380 per oz.

The TSE’s gold and precious metals sub-index shed 375.02 points, or 5.9%, to close at 6401.31. The weaker gold prices were reflected in the performances of senior producers: Cameco plunged $2.90 to $41.75; Barrick Gold dropped $2.30 to $25.20; and Placer Dome fell 95cents to $16.60. Ever-sensitive to the price of the yellow metal, Euro-Nevada dropped $1.85 to land at $20.50, while sister company Franco-Nevada suffered only a slight loss of 15cents, finishing at $29.65.

Among the intermediate producers, TVX Gold was devalued 10cents to $3.80, while Kinross Gold was set back 30cents to $4.80.

The TSE’s metals and minerals sub-group lost 30.33 points, or 0.74%, to close the week at 4046.99. Nickel was selling for US$2.36 per lb. on the morning of Feb. 25, for a loss of 6cents from the previous week. Zinc remained unchanged, while copper lost a penny and lead gained one.

Several base-metal producers lost weight in the report period. Leading the group was Rio Algom, which shed $1.75 to $26.15, followed by Teck B-series shares, which slimmed 80cents to $18.80, and Inco, which lost 70cents to $24.70. Down 30cents each were Noranda, closing at $26.50, and Falconbridge, finishing at $18.95. Bucking the trend was Cominco, which rose 15cents to $23.80.

Western Copper Holdings continued to prosper from the recent San Nicolas base-metal discovery on its El Salvador property in Zacatecas state, Mexico.

The company owns a 45% interest in the project, with the remaining interest held by Teck. Although the partners did not release any new drill results in the report period, Western Copper edged ahead 65cents to $9.65.

Aurado Exploration, which recently optioned two properties near San Nicolas, rose another 3cents to 44cents. The issue has increased in value in each of the last three weeks. Also up this week was junior Laramide Resources, which announced on Feb. 23 that it had entered into an agreement with a private company to acquire the Bilbao property, situated 10 km northwest of the San Nicolas zone. The news resulted in the issue climbing 3cents to 33cents.

Laramide can earn a 75% interest in the Bilbao property by paying $2.5 million in cash and stock over the next 34 months.

On news of impressive drill results, Yamana Resources increased 101% in market value, or 76cents, to $1.51 per share. The junior recently announced assay results of 621 grams silver per tonne, 9.7% lead and 0.46 gram gold from the first 8 metres of a hole drilled on its Lejano prospect in Patagonia, Argentina. The property covers 60 sq. km of hydrothermally altered, Jurassic-aged rhyolitic rocks.

Also up this week was industrial mineral producer Global Stone. The issue gained $1.25 to $6.85 after the company rejected a takeover bid by Belgian-based Carmeuse to buy all of Global’s shares for $6.45 per share.

The offer follows Carmeuse’s recent acquisition, from Cominco, of 4.6 million Global shares, which increased its holdings in Global to 15.6%.

Calling the offer “highly opportunistic,” Global President David Singleton said his company does not welcome the bid and will meet with advisors to review alternatives.