Toronto Stock Exchange Base-metal miners lead volume pack

A period of trench warfare has embraced the markets, as stagnant, directionless trading continued for yet another week. A sort of `quiet- before-the-storm’ attitude has affected traders, who remain cautious while awaiting a clearer picture to emerge concerning the direction of the economy. Hurt by recent rises in the discount rate in the U.S., trading remained subdued and choppy all week. Today’s action saw an 11.74-pt rise in the TSE composite to 3,285.82 pts. As noted last week, support appears to be building at 3,200 pts. Metals and minerals were weaker, losing 26.17 pts to 2,871.47 pts. A marginal 21.88-pt increase in the gold and silver index moved it to 6,142.57 pts. Volume was 22.9 million shares today.

Gold bullion remained sluggish, adding less than a dollar between the first and second London fixes. The latter came in at $427.75(US) per oz. Gold will probably continue to trade in a narrow range between $420-$440 as long as confusion as to the direction of interest rates and inflation continues.

Volume leaders were the nickel twins, Falconbridge Ltd. and Inco Ltd. The former settled a short- lived strike with workers at Sudbury, Ont. Falconbridge was steady at $21.88. Inco gave up 50 cents to $36.63 on volume of more than 160,000 shares. For the week, the issue traded almost 1.8 million shares.

Agnico-Eagle Mines, plagued by problems at its mine near Joutel, Que., lost 25 cents to $15.50. The problems are considered short-term in nature by management. Senior producer, American Barrick Resources was better at $21.75. Echo Bay Mines was also firm, closing at $22.38. The largest gold miner in Canada, Placer Dome Inc., was a tad better at $15.88 — up 13 cents today.

News that government funding has been approved for Novagold’s Murray Brook project in New Brunswick did little to inspire investors. The issue tumbled to a low of $1.20 before recovering to $1.41. A $12 million financing planned at $2.40 per share was pulled this month.

The printing presses will be working overtime to accomodate the sea of paper being issued by two juniors. Lytton Minerals is issuing more than 20 million shares to a private company in a reverse takeover. Total outstanting on Lytton after the deal will be more than 32 million shares. Not surprisingly, the issue remained unchanged at 15 cents . Sunburst Exploration is also involved with a reverse takeover. The deal will cost present Sunburst shareholders plenty. Their shares will be consolidated on a one for sixteen basis. Then, 13.4 million shares will be issued to a company controlling a gold placer property in California. The issue was quiet at a dime.

Hardtimes have also come to the former highflying Duration Mines. Falling to a low of 21 cents , the issue managed to recover to 25 cents at the close. Once $2 paper, Duration spent plenty of money at the Theresa gold property near Longlac, Ont. However, a $2 million outstanding bill could see ownership of the property go to the mining contractor as settlement. Duration says it is working to get the cash.

Greenstone Resources announced a deal to earn a 100% interest in a large tonnage low grade gold-silver deposit in B.C. The issue was unchanged at $5.50. Cassiar Mining was firm at $3.80, as it held to most of last weeks gains. The company, which bought Newmont’s copper mine in B.C., this year, earned approximately 15 cents per share just in the month of June from the operation. With strong earnings projected for the rest of the year and armed with a healthy balance sheet, Cassiar is being reassessed upwards by the market.

Canuc Resources traded a respectable 287,000 shares this week. Today the issue was unchanged at 23 cents . The company expects to start receiving royalty income from a uranium property optioned to Denison Mines near Elliot Lake, Ont.