Toronto Stock Exchange Newmont drilling sparks Atlanta Gold stock

A new “socialist budget” in Ontario and a drop in both Canadian and U.S. interest rates were among the items to be considered during the week ended April 30. There was little in store for mining in an Ontario budget that will drive up the provincial deficit to $9.7 billion from $3 billion last year. But analysts are hoping that the U.S. Federal Reserve Board’s decision to lower the discount rate will spark the kind of reflationary measures that will kick start the flagging gold price.

Although the yellow metal gained 60 cents before closing at US$356.50 per oz. in London, the general lack of activity among gold stocks indicates that there is still plenty of room for improvement.

Today, May 1, Toronto’s 300 composite index closed up 24.25 points at 3493.06 as 21.3 million shares valued at $215.1 million changed hands.

With almost two million shares traded during the reporting period, Vancouver-based explorer Atlanta Gold was among the most active issues this week. After performing strongly throughout the reporting period, Atlanta ended the week at $3, up from $1.26 April 6.

Investors, including a number of German banks are betting on a drill program undertaken by Newmont Exploration on Atlanta’s 3,150-acre gold- silver property in Idaho.

Having obtained an option to earn a 51% project interest, Newmont has commenced a 15,000-ft. drill program to look for deep high-grade ore in the vicinity of two open pits containing about 15 million tons of 0.08-0.04 oz. gold 0.2 oz. silver per ton.

Listed on Berlin’s over-the-counter system, Atlanta has 12.2 million shares issued, of which 1.6 million are held by U.S. Gold of Denver Colorado.

While the gold-silver index eked out a 1.69-point increase today, shares of the big producers were generally listless.

Corona A shares remained at $4.75 today as President Peter Steen announced some changes geared at reducing debt and removing some of the confusion surrounding the company’s structure. At the annual meeting this week, shareholders were asked to approve a 1-for-2 consolidation of Corona’s subordinated voting shares and common shares. The company is also reverting back to its old name of International Corona Corp.

LAC Minerals advanced by 13 cents today after shareholders approved the company’s rights plan at an annual meeting in Toronto. Shares of Placer Dome and American Barrick Resources each gave up 13 cents.

Hemlo Gold remained at $7.88, just above its $7.38 low point.

Meanwhile, Golden Rule President Glen Harper says he isn’t aware of any developments that might have sparked this week’s 16 cents increase in the company’s share price. Golden Rule and subsidiaries Manson Creek Resources and Hixon Gold are gearing up for exploration this summer on properties in British Columbia’s Quesnellia region.

Base metal stocks clearly benefited from the drop in Canadian interest rates, which at 10% are at their lowest level since the October, 1987, market crash. The activity pushed the metals and minerals index to its third straight advance, before closing today up 42.64 points at 3138.45.

Inco, for example, continued to perform strongly. The big nickel miner gained 38 cents today before closing at US$40.13. However, shares of Rio Algom and Noranda each lost 13 cents today.

While Noranda is saddled with $4.4 billion in long-term debt, the big resource company will stick with its policy of paying out a $1 dividend, shareholders were told this week.

Meanwhile, wholly owned Noranda Exploration exercised an option this week to increase its stake in a unit of Crown Butte Resources to 60% by delivering a feasibility report on the New World gold-copper project in Montana. According to the study, developing a 1,000-ton-per-day mine is expected to cost just over $80 million. Shares of Crown Butte ended the week up 38 cents.

Although it was down 10 cents today to $3.75, the Arimetco International issue remained on the active list. Almost half a million shares crossed the floor this week as Arimetco continued to benefit from a sales agreement with Billiton Metals and an expansion of its Nevada copper mine.

In other news, Royal Oak Resources, which is planning to amalgamate with the Pamour Group of companies, including Pamour Inc. and Giant Yellowknife Mines, added 1 cents today before closing at 67 cents.