Toronto Stock Exchange Bears rule the market as index continues to

The bear hug squeezing equity markets refused to let go today, Jan. 31, as the composite index slipped another 2.58 points to close at 3,704.42 points. That’s six straight days of losses. Since early December, 1989, the composite has lost more than 250 points or 6%.

Rising interest rates are being blamed for waking the bear from hibernation, and by most accounts, few see the bull phase coming back in the short term.

The nervousness in the general market is also being seen in the gold sector, which usually profits from forecasts of a slowing economy and expanding inflation rates. Although gold bullion has advanced smartly from the November, 1989 lows of US$356 per oz., the metal is meeting with stiff resistance around US$420.

London’s second fix today was set lower at US$415.05. The drop in bullion prices triggered a significant decline in the gold and silver index, which gave up 302 points or 3.7% to close at 7,792.92 points.

Cambior, the target of takeover talk earlier this week, gave up previous gains to close at $18 1/8 or $1 1/8 lower. Cambior soared on Jan. 30 by more than $1.50 on unconfirmed reports that LAC Minerals was considering a takeover bid.

Cambior is a Quebec-based mid- sized gold producer with more than $136 million in cash and several profitable mining operations. LAC was also easier today, losing 50 cents to $15.50.

American Barrick Resources slipped to $20.25, off a dollar for the day. Franco-Nevada Mining, which holds lucrative royalties on Barrick’s rich Goldstrike gold deposit in Nevada, was unchanged today at $20.25. Franco is going to pay $1.6 million to buy the Interlake Hemlo claims. A very long-term bet, the claims host about three million tons grading 0.25 oz. gold per ton at depths well below 3,000 ft.

Base metals prices appear to have stabilized in the past few days. Cominco was lower at $23 5/8 while Noranda remained stable at $22.25.

Rio Algom is going to shut down two of its uranium mines in Elliot Lake. Little surprise, as all of Elliot Lake’s mines are artificially supported by ludicrous Ontario Hydro uranium contracts, paying more than 200% above current spot prices. The two Rio mines are closing in 1991 — the time when their hydro contracts expire. Rio was weaker at $19 3/8.

Inco traded more than 740,000 shares today to close lower at $26 7/8. The company reported record 1989 earnings of US$750 million. Earnings this year will be markedly lower due to much lower nickel prices.

Aur Resources was firm at $12.75. A request by Louvem for an injunction stopping exploration on the Louvicourt property in Quebec was quashed by a court recently. Stikine Resources was also firm at $37. A new reserve estimate for the company’s Eskay Creek gold deposit is expected by month-end.

Golden Myra Resources came to life popping up to 27 cents before closing a penny lower at 26 cents . Myra has optioned the Stenlund property, west of Hemlo. The claims were in the news in the mid-1980s when Lytton Minerals announced a gold discovery on the ground. Follow-up drilling that missed, comb ined with a very stiff deal, forced Lytton to drop the property.

RFC Resource Finance dipped to a new low of $1.40. The company is developing a large zinc project in Washington. RFC enjoys the sponsorship of Kerr Addison Mines.

Stroud Resources signed a good deal with Chevron. The company gets to pick up the 50% owned by Chevron in their Hislop gold project for $1 million in expenditures plus a royalty. The deposit hosts more than 850,000 tons grading 0.18 oz. gold per ton. Stroud was unchanged at 30 cents .

Echo Bay Mines and Placer Dome were both weaker at $23.63 each. Echo Bay recently suffered much grief over its investment in the Muscocho group of companies taking a big $20-million writedown.