Toronto Stock Exchange Rich copper find sparks buying of Aur,

A series of drill holes suggesting the presence of a significant massive sulphide discovery on a Quebec property sparked the charge. Aur traded more than 1.4 million shares today to close at $6.38 — more than $3.40 higher over the past three days following the announcement (see front page story). Louvem, which says it has a 50% stake in the property, started slowly then picked up speed to trade almost 1.5 million shares today, closing at $1.82. The issue could be had for 52 cents last week. Aur disputes Louvem’s claim and says the company will be diluted to a net profits royalty.

Although the initial results are encouraging, the find is no Kidd Creek. Talk is that several majors are snooping at Aur as a takeover candidate. That in itself has added fuel to the speculative fervor. Kerr Addison Mines and affiliate Minnova Inc. are also mentioned as possible acquisitors. Minnova could use a major acquisition. Minnova and Kerr traded quietly at $18.88 and $19.50 respectively.

The Aur action unfortunately had little impact on overall trading activity which saw a 17.24-pt decline in the composite index to 3769.74 pts. Gold and silver posted a big gain of 49.41 pts to close at 5701.93 pts. However, the gold and silver index failed to find much support from gold bullion, which closed easier at $361.10(US) per oz on the second London fix. Metals and minerals gave up ground slipping more than 1% to 3378.71 pts.

St. Genevieve Resources, which had its glory days way back in 1987 (trading up to $10), is reaping some of the benefits from the Aur discovery. The company owns 56% of Louvem and stands to gain if the find proves to be real. The issue advanced 33 cents to $1.23 on almost 200,000 shares today.

Other gold issues, especially the majors, realized strong gains. American Barrick Resources was firm at $27.25 whereas Echo Bay Mines popped to $17.50.

Hemlo Gold Mines was unchanged at $14.13. Granges Exploration, (which is dropping the Exploration and adding Inc. to its name), announced that a $50-million private placement with MIM Holdings has been completed. Investors approved, moving the issue by 25 cents to $3.15.

Sources say that Inco Gold is making excellent progress at the former producing Cochenour-Willans gold mine near Red Lake, Ont, Wilanour Resources has a 30% stake in this project. Last year Inco said the property had potential reserves of more than one million tons grading in excess of 0.25 oz gold per ton. Wilanour was quiet at $2.70.

LAC Minerals gave up some ground trading to $11.63. The company is still awaiting the outcome of its final appeal for the Page- Williams gold mine from the Supreme Court of Canada. New Quebec Raglan Mines was unchanged at $5.50 following court approval giving Falconbridge — its largest shareholder — the right to buy out the minority block in the company. Raglan holds the largest and richest undeveloped nickel reserves in North America in the remote Ungava area of Quebec. Many feel the deal given to shareholders was far too low.

RFC Corp. says its zinc project in Washington is real. However, shareholders took the opportunity to unload, forcing the issue to $2.61 — off 9 cents for the day. RFC says the former producing Pend Oreille mine has more than three million tons of reserves grading 9.8% zinc per ton. A mill is on site and Cominco’s smelter is 55 miles north in British Columbia. The company’s largest shareholder is Kerr Addison Mines.

Canada Tungsten added 50 cents to $7 on continuing fears that the communist purge of pro-democracy students in China will crimp world tungsten supplies. China is the largest producer in the world. CanTung has a large shutdown mine in Canada which requires higher prices to justify reopening.

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