Toronto Stock Exchange Golds look good as U.S. dollar fuels

With fears that high interest rates and inflation are lurking around the corner, investors sought solace the only way they knew how — by stocking their portfolios with bullion and gold shares. As the composite 300 took a correction of 94.95 pts on the week to settle at 3,771.99, the gold and silver index took off an astonishing 1,037.25 pts to new high at 9,779.3 before stalling with a drop today of 667.49 pts and a close of 9,131.81.

Commodity markets were equally a sizzle. Bullion prices jumped up to close in New York yesterday at a four-year high of $450(US) an oz, up some $20 since last week. The closing spot price on the Montreal market today was off just a bit at $443(US)-bid $444(US) ask.

Metals and minerals were up 4.87 pts this week to 2,757.5, while oils dropped 190.34 pt to 3,975.26.

With nearly 5 million shares trading hands and a $5 gain, Dome Mines emerges as this week’s most active trader. Noranda Inc. and Placer Development both admit they have an interest in possibily making a pitch to Dome Petroleum for its shares of Dome Mines. Dome Pete holds 20.8 million shares of Dome Mines which represents a control block of the gold mining company. The Dome group of mines is the largest gold producer in the country with an output last year of 557,586 oz.

Dome ends the week at $21.75, with Noranda at $30.75 after a loss of $1.25 and Placer trading unchanged at $47.25.

Two junior companies have made some market waves. HSK Minerals and Joutel Resources have entered into an agreement with the Canadian Imperial Bank of Commerce to each purchase two million shares of Queenston Gold Mines. This will give the two companies a total of four million shares or 41.5% interest in Queenston.

Queenston not only has a very healthy balance sheet with close to $2 million in working capital but it has strong interests in the famed Kirkland Lake mining camp of Ontario. The company new-highed at $2.40 after the announcement with a gain of 42 cents , but closes at $2.10. HSK also new-highed at $1.10 with a 12 cents gain but closes down at $1.01. Joutel gained 9 cents to new high at 45 cents and closes the week at 44 cents .

The directors of International Corona Resources have accepted the report of an independent committee of the board that says the terms of an offer by Royex Mining Corp. are fair and reasonable.

However, this committee advised that no recommendation be made to Corona shareholders and warrant holders concerning the offer. One reason was that the market price of Corona shares could be substantially higher or lower depending on the final outcome of the litigation with Lac Minerals involving the ownership of the Hemlo Page-Williams mine.

Royex has offered cash, stock and warrants for four million Corona shares and stock and warrants for all the Corona warrants outstanding. Royex valued the offers at about $50 per share and $40 per warrant.

Meanwhile, Corona shares shot up an amazing $7.25 to new high at $56.50 with a close today at $48.50. Royex netted 62 cents on the week to close at $6.75, while Lac advanced $3.13 to close at $42.75.

Other Hemlo players which fared well this week include Teck whose B shares won $1.25 to $38.25 and Hemlo Gold Mines gained $1 to $28.25.

Nova Beaucage new-highed at 66 cents but closed at 55 cents this week. Last week we reported the company had cut strong gold values in deep drilling at its Elder gold property near Rouyn. Joint venture partner is Montreal-listed Aunore Resources.

A recommendation by an investment advice hotline on Friday, April 10 meant that traders were met the following Monday with a flood of buy orders for Acadia Mineral Ventures which they could not match. It was all sorted out by Tuesday and Acadia with three drilling properties in Nova Scotia closes the week at $4 after a 74 cents gain.