Toronto Stock Exchange (September 30, 1991)

Constitutional issues aside, Inco Ltd. was the big talking point among mining watchers during the week ended Sept. 24.

The nickel miner’s activities clearly caught the attention of residents in Sept-Iles, Que., where the company has staked about 50,000 acres it considers highly prospective for platinum and other precious metals.

But even more significant are some spectacular copper and nickel values intersected by Inco on the eastern rim of the Sudbury, Ont., basin close to its main nickel-producing operations. According to Inco, three drill holes returned grades of 1.5-2.6% nickel, 5.1-7.4% copper and 0.5 oz. platinum and gold across wide widths at a depth of 8,000 ft. below surface. Inco’s exploration activities had little effect on its share price, which was down this week in sympathy with softer nickel prices.

Today, Sept. 25, the Inco issue continued to reflect nickel’s demise by drifting from a high of US$43.88 to close at US$35.75. Inco ranked number two on the active list. By contrast, this week’s US$4.75-per-oz. increase in the price of gold helped precious metals issues to recover some of the ground lost when fears of Russian selling drove the metal to US$343. LAC Minerals, the week’s most active issue, was even at $8.75. Although gold ended the week at US$352.75 per oz. in London, American Barrick Resources and Placer Dome lost 13 cents and 25 cents respectively. Placer Dome has signed a letter of intent to earn a 50% interest from Ontex Resources in the Beardmore, Ont., gold property won by Ontex in a court battle with Metalore Resources. While the proposed agreement includes 39 claims still held jointly by Placer Dome and Metalore, the latter issue didn’t trade today. After gaining 88 cents earlier this week, Euro-Nevada lost some ground today, closing down 38 cents at $13.75. Pegasus Gold also gave up 13 cents. Granges Exploration was active on drilling results from the Unuk River project in British Columbia’s Eskay Creek region. Trading over 600,000 shares, Granges closed at $1.63. As indicated by general market activity, economic worries are still having a greater impact than the new constitutional proposals which were tabled during the reporting period. Many issues sank to new lows and today Toronto’s composite 300 index gave up 8.02 points to close at 3390.08 after 19.3 million shares valued at $220 million changed hands.

In other news, Metall Mining was active this week after copper futures hit a 5-month high of $1.10 per lb. The red metal was reacting to speculation that the political situation in Zaire could prove calamitous and reduce copper supplies by 4-5%. Metall closed down 13 cents today at $10.38. The blip in the copper price didn’t have much effect on either Audrey Resources or its Rouyn-Noranda, Que., partner Minnova. Down five cents today, Audrey hit a new low of $1.50. Minnova was unchanged at $16.50. Madeleine Mines also hit a low of $2.80 before trading was halted to allow the company to issue a press release stating that margin pressure is affecting some of its major shareholders. Many have bought in on the hope that President Patrick Sheridan will be able to bring the company’s Lac des Iles palladium-platinum project into commercial production. But charges laid against Madeleine by the Ontario Ministry of the Environment has cast doubts on Sheridan’s ability to do so, at least in the near future. Madeleine peaked this year at $6.50.

Other issues which hit bottom this week included Galactic Resources, Societe Miniere Louvem, St. Genevieve Resources, Wiscan Resources, Cathedral Gold, Kerr Addison and Agnico-Eagle Mines.