Toronto Stock Exchange Volatile market records a small decline

With the composite 300 index off 7.3 pts at today’s close to 3,902.37 pts., the market continues to exhibit its volatile nature, which might best be illustrated by a gold and silver index that set a record early in the week but which has declined steadily since, including an 83-pt. drop today. The price of gold continues to hover in the $460 range. The weekend meeting of finance officials from the Group of Seven industrialized nations, at which it was agreed to keep currency rates stable, seemed to have little or no effect on the Toronto market and only passing effect in New York. Investors in Toronto continue to be an active crowd, trading 30.3 million shares today.

Announcing discovery of a new zone of gold mineralization at the Doyon mine property in northwestern Quebec (see front page story) were Lac Minerals, which closed unchanged on the day at $19.13, and Cambior Inc., which gained 13 cents to $26.63. The new zone, named the Warrenmac, is located 1.4 km east of the main Doyon shaft.

Entering into a share subscription agreement were Canamax Resources and Amax Gold, under which Canamax will sell, on a private-placement basis, 500,000 common shares of its capital stock at $12.50 per share. Canamax moved up 63 cents to $12.38, while Amax Gold shares slipped 75 cents to $38. Issuance of these shares will boost Amax’s ownership of Canamax, on a fully diluted basis, from about 41% to 43%. (See related front page story.) The new funding will be spent on a number of Canamax projects.

With shareholders of Sullivan Mines set to vote Oct 15 on a proposed amalgamation with a subsidiary of Cambior, William G. Brissenden, Inc. of Toronto has offered to sell its 1% interest in the Arthur W. White gold mine, in which Sullivan, which has the right of first refusal on the offer, is a 34% owner. Holder of the remaining 65% interest is Dickenson Mines. Sullivan shares were down 25 cents to $7.25, while Dickenson A shares also fell 25 cents to $13.38.

Roxmark Mines, which lost 1 cents to 55 cents , reports it has completed the hydro installation, headframe and hoisting arrangements at its Geraldton, Ont., property, the former Magnet Consolidated operation. Dewatering of the existing shaft has progressed to the 630-ft level. Surface exploration, including drilling, has started again on the Benedict zone, 1,100 ft north of the old mine workings.

Internationally, Westfield Minerals, which jumped 15 cents to $4.10, says it has reached agreement with Shell Chile S.A. and Citibank, N.A., whereby it will participate in the development of the Choquelimpie silver-gold deposit in northern Chile. Accessible by road, the property sits 15,200 ft above sea level.

The joint-venture Jonpol Explorations and T & H Resources continues to be encouraged by results from the Garrison Twp., Ont., gold project. Jonpol slipped 15 cents to $3.70, while T & H moved down 4 cents to $2.41.

Pleased with results from its initial drilling on its Zeemel Lake property in northwestern Ontario is Santa Maria Resources, which reports one hole intersecting 0.56 oz gold per ton over 4.1 ft. Shares of Santa Maria closed up 2 cents to 60 cents .