Toronto Stock Exchange LAC, Westmin advance on results from Nevada,

Activity during the week ended July 16 centred on Quebec’s Abitibi region where 20 analysts were treated to a tour of LAC Minerals’ (TSE) new Bousquet No. 2 gold mine. Among the most active issues this week, LAC expects Bousquet No. 2 to generate 175,000 oz. of the yellow metal this year, a feat that should put the operation among Canada’s top five gold producers. Ironically, as the analysts were being shown around the operation, moves were being made to resolve a lawsuit over adjacent claims owned by the family that sold the Bousquet properties to LAC more than a decade ago. In a last minute bid to avoid going to court over the Ellison gold claims west of the Bousquet mines, Yorbeau Resources and Republic Goldfields have begun discussions. While they couldn’t predict whether the talks will be successful, sources close to both companies expect the Ellison claims (which host 861,000 tons of grade 0.2 oz. gold per ton) to be “back in play” sooner or later. While that was happening, Equinox Resources, LAC’s joint venture partner on the Rosebud project in Nevada, was releasing more impressive results from the Dozer Hill zone. However, a 30-ft. intersection averaging 1.89 oz. gold didn’t have much impact on the Equinox issue, which was even today, July 17, at $2.80. By contrast LAC added 25 cents to close at $10.13. Equinox says Goepel Shields and Partners and LOM Western Securities have agreed to purchase 1.6 million Equinox special warrants at $2.90 each for gross proceeds of $4.64 million. During the reporting period, results from the Myra Falls property in British Columbia drove Westmin Resources shares up to $4.65. But as profit-takers moved in, the issue declined today to $4.35. Meanwhile, the major gold producers were among the volume leaders as analysts continued to anticipate an improvement in the gold price. Hemlo Gold was particularly impressive. It gained 38 cents during trading on July 15 and ended the week at $11.50. However, as gold ended the week at US$368.90 in London, down US$1.20 from a week ago, the hope for rally is obviously not materializing just yet. While U.S. Federal Reserve Board Chairman Alan Greenspan was telling Congress not to exclude the possibility of a double-dip recession, interest in some metals stocks spurred Toronto’s composite 300 index. For the second day in succession, it closed up 6.4 points today at 3541.8 after 20.21 million shares worth $235.82 million changed hands. While nickel edged down slightly this week to US$3.91 per lb., shares of Inco roared to US$43.58, a new 52-week high. However, shares of the big nickel miner finished the week just below the US$43 mark at US$42.88. Also peaking were Parlake Resources and Midas Minerals at 90 cents and 36 cents respectively. The Timmins Nickel issue was active following a buy recommendation from Richardson Greenshields of Toronto analyst Raymond Goldie. The company has agreed to issue between 1.5 million and 3.27 million special warrants at $1 each to raise $1.5-3.3 million. Proceeds are earmarked for work on Shaw Dome. Reaching new lows this week were Treminco Resources at 10 cents, Dundee-Palliser Resources at five cents and Goldstake Explorations at 30 cents. Toronto resource giant Rio Algom also bottomed at $14.38 before the issue recovered some ground to finish at $15. Arimetco International says First Marathon Securities and Midland Walwyn Capital have agreed to underwrite a US$8.75-million issue of notes convertible into an equal face amount of 8% debentures. A favorite among analysts due to President Roy Shipes’ previous track record in the copper industry, Arimetco ended the week up five cents at $3.65. St Andrew Goldfields said it is exercising its right to extend the Swiss Bond/preferred share exchange offering for one week to expire July 26. St. Genevieve Resources was unchanged at 86 cents as the Montreal company’s top executives continued to ponder future priorities. St. Genevieve has money in the treasury following Noranda’s recent purchase of a majority interest in Societe Miniere Louvem. But as part of that deal, Noranda required St. Genevieve to set aside funds for future reclamation costs relating to the Manitou project near Val d’Or, Que. because, according to Jean Depatie, vice-president of exploration, it is impossible for St. Genevieve to maintain at a high level its exploration activities in Quebec.