Toronto Stock Exchange Golds strong as market bids 1986 a firm

The market ends the year on a firm and upbeat note, despite the quiet post-Christmas trading. At noon the widely-followed composite 300 was up 3.15 pts to 3048.28, a 5% improvement over the 2,900.60- pt level logged in at the last day of trading in 1985.

Gold mining issues had been showing strength all morning. By noon the gold and silver index had advanced 8.84 pts to 5,185.03, a substantial 19% increase over the 4,349.09-pt level on the last day of trading in 1985. The price of the yellow metal on the Montreal spot market at noon was $389(US)-bid $390-ask. Metals and minerals have been holding their own all week with 3.91 pts gained by noon for a close of 1,961.39. Oils and gas were off 2 pts by noon to 3,003.27.

Among the gold mining issues, there are a few ending the year with a bang. Broulan Resources gained 30 cents over the week to new-high at $1.98 with a close at noon of $1.95. Significant gold values have been intersected on that company’s Timmins property by operator Belmoral Mines. Belmoral, which has the right to earn a 50% interest in the property by spending $2.3 million within a year, was up a nickel for a close of $2.60.

The week has also been good to Galveston Resources which recently signed a joint venture agreement with Noranda Exploration regarding a 20,000-acre gold bet in the Carlin gold belt area of Nevada. Over the week, Galveston won 38 cents to new-high at $6.13 with a close at noon of $5.88. Noranda was trading unchanged at $19.63 at noon.

Nuinsco Resources was a winner this week with a gain of 12 cents to close at $1.62. A 2,700-ft ramp is being driven on the company’s Cameron Lake gold property in the Kenora mining district of Ontario. Echo Bay Mines is funding this $3.6-million phase one underground exploration program.

Echo Bay closed the week at $31, off 12 cents . This company can look back over the past year with a certain amount of justified satisfaction with more than one analyst ranking it as a buy for gold investors. The company is one of North America’s largest gold producers with this year’s estimated gold production coming in at about 300,000 oz.

Dome Mines, which expects to have a net gold production this year of some 375,000 oz, lost 26 cents on the week to close at $10.25. Campbell Red Lake, with an estimated 1986 gold production of 350,000 oz, was off $1.50 on the week to close at $25.88.

Lac Minerals and International Corona end the year with the ownership of the Hemlo Page-Williams mine still unresolved. And market- wise the companies are playing a game of see-saw with no spectacular gains or losses either way. Over the week, Lac was down 38 cents to $26.88. Corona was up 75 cents to $29.33.

Teck Corp., meanwhile, has seen its B shares climb 38 cents to $23.75 over the week. The Teck-Corona mine at Hemlo, named the David Bell Mine in recognition of the Corona geologist who discovered the mine in 1981, will be included in Teck’s earnings after the completion of pre-production underground development. Mine workings have now reached the lower levels with the mill rate expected to be up to 1,000 tonnes per day by year-end.

Onitap Resources made market waves this week with a gain of 33 cents to new high at 60 cents and close at 53 cents . This company has just completed raising funds via a private placement and expects to have work start on its Nova Scotia properties, located near Isaac’s Harbour, in the new year.

Nickel producers Falconbridge Ltd. and Inco Ltd. end the year quietly. Falconbridge was up 13 cents on the week to $16.75, while Inco was off 13 cents to $16.38.