Toronto Stock Exchange Lively base metals help keep market active

Golds were generally firmer across the board with the exception of American Barrick. Some of the shine went off Barrick’s shares this week when the company lost a round in its legal battle with Gold Standard over ownership of the Mercur gold mine in Utah. Shares of Barrick shed more than $2 to close at $28.88 in active trading. A Utah court recently ruled that Gold Standard can proceed with its lawsuit claiming breach of fiduciary duty against American Barrick. That is precisily the same type of arguement that helped Corona win control of the Williams mine in its recently concluded lawsuit against LAC Minerals.

North America’s second largest gold producer Placer Dome saw its share price move up to $19.38, while another major producer Corona Corp. gained 25 cents to close at $9 and was one of this week’s most active issues.

There were several bright spots among the base metal issues, also. Benefiting from a fairly stable nickel market, and the ongoing bidding war over Falconbridge, the shares of Inco Ltd. added more than a buck to their price of $44, while Falconbridge was also better closing at $38.50. The bidding war between Amax and Noranda Inc. for control of Falconbridge continues as shareholders await a counter-offer from Amax. Noranda has offered $37 per share for Falconbridge, while Amax is bidding $36.13.

After gaining control of the Quebrada Blanca copper deposit in Chile, Cominco Resources International lifted its share price 25 cents to $3.90. The company is also developing two major gold mines — Marte and Lobo — in Chile.

Trading was active this week in recently listed Timmins Nickel following the completion of a $6.65- million public underwriting (see story). The shares of Timmins Nickel closed at $1.82 on a volume of 185,300. The company has a 51% interest in Redstone nickel mine which entered production in May.

Another junior nickel issue Black Hawk Mining traded as high as $3.00 before falling back to close to $2.30. The company has drills turning on its recently acquired Minago nickel deposit in northern Manitoba.

Share prices were all lower for Aur Resources, Societe Mineire Louvem and St. Genevieve this week. That trio of companies involved in a new base metal find near Val d’Or. A bailiff this week seized the 8.5 million shares of Louvem held by St. Genevieve. They will be held in trust pending the outcome of a lawsuit between Aur and Louvem. Shares of Aur closed down 50 cents at $8.75.

Trading was halted at press time in the shares of Ego Resources pending release of drill results from a Northwest Territories base metal property. The company reports it has intersected a possible extension to a known base metal deposit near Great Slave Lake, N.W.T. A recent 23-m drill intersection graded 16.6% zinc, 0.79% lead and 159 g silver per tonne. The intersection was obtained at a depth of about 300 m below surface.

Hillsborough Resources gained more than 50 cents to close at $3.45 this week. The company recently announced some encouraging results from the Mt. Hundere base metal property in which it has a 20% interest. The property is located in the Yukon Territories and is operated by Curragh Resources, a private company.

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