Toronto Stock Exchange Blame Rio for slump, but look for solace in

Put the blame on Rio for this week’s whopping market slump. Bank shares, hammered all week in reaction to Brazil’s debt repayment problems, pulled the overall market into a nosedive. Not surprising, investors looked to the golds for solace and found it.

While the composite 300 dropped 85.47 pts over the week to 3,474.56, the gold and silver index advanced a strong 362.15 pts to new high at 6,568.95 pts. The price of the yellow metal closed on the Montreal spot market at $403(US) bid $404(US) ask, up over $8 from last week’s close. Metals and minerals fared poorly with a 73.19 pt loss to 2,418.16.

Golden Knight Resources charged ahead $1.50 to new high at $18. The Northern Miner expects a decision very soon, possibly before the end of this week, on the Golden Pond East project in the Casa Berardi area of Quebec. Meanwhile the Golden Knight and partner Inco Ltd. are proceeding on their $24 million underground exploration project on Golden Pond West. Over the week, Inco was off a $1 to settle at $20.

Teck Corp., which has a 30% interest in Golden Knight, was 88 cents to $27.88 on its B shares. Its 50% owned David Bell mine in Hemlo is expected to reach its rated capacity of 1,000 tonnes per day by April. Right now it’s running about 936 tpd.

International Corona Resources has the remaining 50% interest in the David Bell mine, but it is still waiting to hear the ownership status of the Hemlo Page-Williams mine.

It has now been some three months since the time that Corona and Lac Minerals presented their arguments to the Ontario court of appeal. When the panel of five judges will hand down its decision on the ownership of the mine is anybody’s guess.

However, the first anniversary of the orginal decision transferring the mine to Corona is approaching. That bombshell judgment came down March 7, 1986, the Friday prior to last year’s Prospectors and Developers’ Association Convention. One can’t help but speculate as this year’s PDA convention approaches, whether the court of appeal judges will follow suit and hand down their decision the Friday before the convention. Obviously, we will all have to wait and see.

Meanwhile Corona made a big gain of $3.25 to end the week at $38.25. Lac closed at $36.75, after a gain of $3.01.

In the on-again off-again takeover of Corona story, Murray Pezim has been voted out as vice- chairman of the board of Corona and removed from the board’s executive committee. Mr Pezim says he intends to petition for a special meeting to force a change in makeup of the board.

Mr Pezim’s flagship company Galveston Resources won $3.38 to close at $22.75. The company plans to direct $4 million on exploration and development work in Canada this year under the direction of Hemlo Gold Mines, a subsidiary of Noranda Inc.

Hemlo Gold which holds the Golden Giant mine as its asset was up $2 to $21.63, while Noranda, this week’s most active trader, slipped 50 cents to $26.50.

New Goliath Minerals and New Golden Sceptre Minerals both won 37 cents to each close at $1.59.

Roxmark Mines made market waves this week with a 16 cents gain to new-high at 43 cents and close at 40 cents . The company has completed 15 drill holes of its current program in the Geraldton area of Ontario. Assay results are awaited and President Stanley E. Malouf tells The Northern Miner he’s as eager as everyone else to see them. He expects results to be ready by the time of the company’s annual meeting in early March.

Placer Development shares were up 75 cents to $27.88. Shareholders will be as ked to approve a 2-for-1 stock split at the company’s annual meeting.

Acadia Mineral Ventures was up and running this week with a 15 cents gain to $2.75. It plans to spend $5.4 million on major exploration work in Nova Scotia over the next 12 months.

Resurrected Vestgron Mines looks as if it will be an active concern once again. New President Brian Flemming tells us Vestgron, now based in Halifax, will continue as a holding company and will be on the look-out for resource and non- resource investments. The company was off 24 cents to $1.40.

Cominco was strong this week with a 26 cents gain to $16.50. The board of directors have approved a restructuring plan which will see non-core assets sold to reduce debt. The rumour mill grinds out the news that Teck, the controlling shareholder of Cominco will be selling off the fertilizer division and will concentrate on mining.