Toronto Stock Exchange Golds surge ahead on rising bullion price

Wednesday close, Sept. 3

With gold bursting through the $400(US)-an-oz level on commodity markets this week, gold shares have likewise surged ahead. After a spectacular advance of 206.97 pts yesterday, the gold-silver index gained 40.54 pts today to reach 4,898.16 pts. The yellow metal has been able to maintain its new price level for the past three days with gold closing on the Montreal spot market today at $403(US)-bid $405(US)-ask.

The metals and mineral index fared well today with a climb of 71.43 pts to reach 2,156.00, while the oil and gas index was up 20.46 pts for a close of 2,742.31. With all this activity, the widely-followed composite 300 was up 18.25 pts to close at 3,058.27.

The most active gold of the week once again is Placer Development. After 1.1 million shares traded hands, a gain of $1.13 was logged in for a close of $29.38. A quarter was added in today’s trading for a final price of $29.63.

Dome Mines made an impressive gain of $1.25 over the week to break above the $10 barrier for a close of $10.25. In its first six months this company reported net earnings of $20.9 million versus $8 million in the same year-ago period. Subsidiary Campbell Red Lake was up $1.75 on the week to close at $26.75, a vast improvement since May when shares were trading at a low of $19.75. Today’s trading saw a gain of 38 cents for a close of $27.13.

Echo Bay was better by $1.75 on the week to log in a new high of $29.75. Today 13 cents was lost for a close of $29. A new high was also set by U.S.-based Battle Mountain Gold whose chief asset is the Fortitude gold mine in Nevada. It was up to $26.25 this week, a gain of $1.75. A quarter was tacked on in today’s trading with a volume of 9,700 for a close of $26.50.

Paul Penna’s companies fared well on the week. Agnico Eagle produced 40,046 oz of the yellow metal in the first half of this year, a 30% increase from the 1985 comparative period. The share price was up $1 on the week for a close of $26.75. It advanced a further $1.13 on the day to close at $27.88 on a volume of 31,500. Dumagami Mines with its new West zone new-highed at $11.38 today following a gain of $1 on the week and 75 cents on the day. Not to be outdone, Goldex Mines new-highed at $2.780 today after a gain of a dime. Underground diamond drilling could start at its Dubuisson Twp. gold property in the late fall.

Cambior has consistently made a good showing since first listing earlier this summer. Its units gained $2.25 on the week for a new high of $14.25. In today’s trading 50 cents was trimmed for a close of $13.63.

Lac Minerals broke above $25 earlier this week, but today trading was unchanged at $24.88 on a volume of 96,900. The big news coming from the company lately is not only the step-up in drilling on its Bousquet property but also the go-ahead given to its Stillwater platinum play.

Lacana Mining Corp., which recently completed the purchase of the 25% minority interest in its Nevada-based subsidiary, Lacana Gold, was up 25 cents on the day for a close of $9.50.

Dickenson Mines saw its B shares advance 75 cents on the week to new high at $9.50. Today 13 cents was shaved off for a close of $9.38. Its latest 6-month financial statement shows that profit doubled to $1.3 million from $688,000 posted in the year- earlier period. The company says it’s looking for acquisition opportunities for more gold production.