Toronto Stock Exchange Prices mixed as market counts down to

If this week’s trading activity is any indication, the markets are in for a rough ride during the rest of 1991. In the period ended Jan. 15, the composite 300 index posted five successive losing sessions as investors waited for a definitive announcement on the Middle East situation.

Today, Jan. 16, the composite 300 rallied on reports that the U.S. was considering a new Iraqi proposal that could prevent war from breaking out in the Persian Gulf. These false reports drove the 300 index up 2.54 points to 3164.49 on a volume of 15.9 million shares.

In the hours before multi- national forces began bombing Baghdad gold dropped to US$379 per oz. It later rallied to finish the week at US$403 on the second London fix.

“When the Middle East crisis is resolved, the market will take off,” said a Toronto trader who asked not to be identified. “The only thing that has held it back is the uncertainty in the Middle East,” he said.

Meanwhile, low volumes are causing a lot of price volatility within the market. Today, for example, shares of Noranda were down 38 cents after only 39,369 shares changed hands. A mere 95,567 Cominco shares crossed the floor as the issue gave up 37 cents to close at $20.38. Inco was even at $28.38 on a volume of 91,850.

As the gold silver index lost 39.14 points before closing at 5429.84, precious metal stocks were mixed. American Barrick was down 13 cents to $23.75. LAC was even at $9.63 and Placer Dome was down 25 cents at $17.75. Noranda President David Kerr confirmed this week what gold watchers have been saying for months. Noranda, he said, is considering transferring the gold assets of Noranda Minerals into Hemlo Gold.

If such a proposal was carried out, Noranda’s New World deposit in Montana, plus the Harker Holloway and Teddy Bear projects in Ontario would all be dealt to Hemlo. Kerr also predicted that Noranda will cut its spending this year by 25% in a bid to prevent its $4-billion debt load from climbing any higher. Hemlo closed up 13 cents.

Still on the gold front, shares of Metalore Resources recovered this week to post a $2 increase before sliding back today to $6 from $6.50. Activity on the tightly held Metalore issue coincided with President George Chilian’s stated intention to appeal a recent court decision requiring Metalore to return the 18-claim Brookbank property to Ontex Resources. The property is in northern Ontario.

Bema Gold advanced 5 cents after the company tabled a positive preliminary feasibility report on its Refugio gold project in Chile. Scheduled to become the second mine in Bema’s portfolio, 50% owned Refugio is expected to produce 225,000 oz. annually.

Greenstone Resources is also bullish on the prospects for its 51% owned Santa Rosa gold project in Panama which is being explored under a joint venture with Swedish company Boliden International Mining. Recent drilling results including a 249-ft. intersection averaging 0.12 oz. gold suggest that Santa Rosa reserves (2.59 million tons of grade 0.065 oz.) can be increased substantially.

Shares of Audrey Resources climbed to $3.40 this week as 30 companies mulled over a feasibility study relating to the 1100 lens at Audrey’s Mobrun polymetallic mine near Rouyn-Noranda, Que.

As Audrey doesn’t have the financial capabilities to develop the new ore on its own, the company is attempting to persuade a number of companies including partner Minnova to invest as much as $90 million in the project. At press time Audrey had slipped back to $3.25.

Meanwhile, New Venture Equities and Corona Minerals Corp., both units of Vancouver-based Corona, recently sold 1.3 million Wharf Resources shares. The shares were sold between Dec. 7 and Jan. 9 at between $5.37 and $6 each when they closed today.

Corona Minerals still holds 1,000 Wharf shares while New Venture doesn’t have any.

Galactic Resources, down 5 cents today, has agreed to sell its remaining 10% interest in the Philippines’ copper-gold exploration company Far Southeast Gold Resources to a subsidiary of Australia- based CRA Ltd. CRA has agreed to pay US$5.6 million cash for the share block. As a result, Galactic expects to realize an after-tax gain of about $2.4 million.