Toronto Stock Exchange Improved gold price marks uneventful week

A nervous wind is blowing across the floors of the major exchanges these days. Despite dire warnings by bearish sentiments that the five- year old bull is on its last knees, the market continues to show mixed signals. The recent three-week period of directionless trading can either be interpreted as a consolidation period before the next push forward, or as a base for continued movement downward.

In Toronto, the tse composite turned bullish, as 27.64 pts were added to close the index at 3,919.44 pts. Golds, which have been naturally volatile, added a healthy 82.26 pts to 10,205.99. Gold bullion advanced during the week to $462 (US) per oz, primarily on news that an American helicopter gunship had attacked an Iranian vessel in the Persian Gulf.

The general strength in golds however, is misleading. Most of the index’s movement can be attributed to the performance of several of the heavier weighted issues, namely American Barrick Resources and Placer Dome Inc.

Barrick must surely be the Canadian cinderella mining story of the decade. Created just a scant three years ago, the company has blossomed into one of North America’s premier gold mining companies. With a major position in the fabled Carlin trend in Nevada, this company is looking to 700,000 oz of gold output by 1991. The issue closed at $37.25. Also, another financing is in the works, expected to raise more than $100 million.

The metals and minerals index was also better this week, adding 36.97 pts to 3,348.96. Base metals, which are responding to low inventories and renewed industrial demand, are remaining steady. Falconbridge Ltd. and competitor Inco Ltd. were both stronger. Inco moved to a new high of $30 before settling back to $29.75. Falconbridge was also at $29.75, just a shade off its 52-week high. Weakening zinc prices however, have taken their toll on Brunswick Mining & Smelting which dipped to $14.

Last week we incorrectly reported that Madeleine Mines was the target of a lawsuit. Actually Madeleine’s President J. Patrick Sheridan and two associated companies, Anyox Metals and Zenmac Explorations, are being sued. The plaintiff, James Hunter, alleges that he was the promotor of Madeleine and was not paid for his services. He is seeking approximately $4.5 million. The defendants say that there was never any arrangement made with Mr Hunter. Madeleine remained steady at $10. The company is busy with a platinum group metals project north of Thunder Bay, Ont.

Cominco Resources and partner Equinox Resources continued to enjoy strong markets, gaining on news of high grade gold at their Buckhorn mine property in Nevada. Cominco added a dollar on the week to $3.50 whereas Equinox closed at $4.50; up 80 cents . Dunraine Mines, which has been a generally inactive issue for the past two years, soared to a high of $1.30 before closing at $1.29. Control appears to have changed hands to a new group which took down a private placement of Dunraine units.

Pioneer Metals traded to a new high of $16 before settling back to $15.88. The highflying company is taking over control of Silbak Premier Mines, a vse-listed issue with a major stake in a gold project in B.C.

On the exploration front T&H Resources continued advancing smartly to another high — $2.60. Volume was 409,150 shares today. Last week the issue new highed at $1.85. The company, and partner Jonpol Explorations, cut strong gold mineralization on a property in Garrison Twp., Ont. Jonpol also advanced to $3.75; up 55 cents for the week.

Another big winner was Joutel Resources which traded 414,500 shares today to close at 54 cents . During the day, the issue moved to 66 cents before coming back. Joutel’s officers are planning a trip to Europe in a couple of weeks to inform the company’s large European shareholder base of coming developments. The company’s largest asset is a control block in Queenston Gold Mines. The company is also active in several exploration projects across Canada.