Toronto Stock Exchange Booming metals help composite reach new high

The gold and silver index was also a winner, adding 22 pts to close at 6068.59 pts. Bullion prices on the second London fix were up by a dollar to $372.50(US) per oz.

Overall market activity continues to boom, principally the result of easing inflation in the U.S. Deemed good for the economy, the inflation news is a negative factor for gold bugs. Today’s volume was a respectable 27.3 million shares.

It’s rollercoaster time in Val d’Or, Que., where three companies, Aur Resources, Louvem Mining and St. Genevieve Resources are enjoying the fruits of a base metals find in Louvicourt Twp. (See front page story). All three experienced an about face after hole 49 was released showing uneconomic values in copper, zinc and gold. Although geologically exciting, the market is only interested in dollars and cents. The result was a selloff which left Aur firm at $9, Louvem at $5.75 and St. Genevieve at $2.54. Just prior to the release Teck Corp. and Cominco Ltd. put $35 million on the table to buy a 19% stake in Aur at $10.75 per share.

Base metals issues responded to a wave of institutional buying. Falconbridge Ltd. was a winner, advancing by more than a dollar to $28.88 on volume of 845,000 shares. Inco Ltd. added $2 to $36.63. The latter company earned record profits during the first half of this year. Nickel prices continue to show excellent support over $5(US) per lb.

Cominco Ltd. was also strong on volume of more than 150,000 shares. The issue closed at $28.25 — up more than $1.12. The company is the world’s largest zinc producer. Zinc prices were also firm, displaying good supply-demand fundamentals.

Major gold miners continued to hold their ground in light of persistently weak bullion prices. American Barrick Resources eased 50 cents to $31.50 whereas Hemlo Gold Mines was unchanged at $15.13. LAC Minerals was easier at $12.25.

A $248-million(US) development in Chile is one of the big ticket items on Placer Dome Inc.’s list of projects. The gold mining company advanced to $17.63.

Wilanour Resources was firm at $3.65. Inco Gold is completing a $4.7-million exploration program on the company’s former producing mines near Red Lake, Ont. Inco considers the project a possible future production candidate. Detailed exploration results will likely be released this fall, Inco says.

Newhawk Gold got a much needed shot in the arm, as the stock moved to $3.20 before settling back at $2.85. A drill hole cut 13.6 ft grading 1.58 oz gold per ton from the company’s Sulphurets property in British Columbia. Another hole intersected 17.9 ft grading 0.57 oz gold and 11.1 oz silver.

Gold production began this week at St Andrew Goldfields’ Stock Twp., Ont., property east of Timmins. The issue, which has been quiet of late, added a dime to $1.60.

Geddes Resources was unchanged at $1.56. Drilling at the company’s Windy Craggy copper deposit is outlining a major copper resource. Widths are getting bigger — and that means the tonnage will likely increase.

Canada Tungsten is losing steam. The issue surged to more than $6 following the implementation of martial law in China. That country is the world’s largest tungsten producer and speculators were betting that supplies of the mineral might be disrupted. That does not appear to be the case, as the issue drifted lower to $5.25.

Rio Algom Ltd. was strong, moving to $24.25. The company is committed to uranium mining for the future and has beefed up its exploration arm. In fact, exploration has become a major item for Rio which wants to focus on its mining interests.

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