STOCK MARKETS — TSE rises despite weak performances of golds, base metals — Aurado Exploration remains hottest ticket; Rex share price hits three digits

The Toronto Stock Exchange 300 composite index climbed 78.97 points, or 1.1%, in the report period of Feb. 11-17, to end the week at 6960.46.

Trading volumes were relatively healthy for most of the period, except for Feb. 17, when volume decreased to 61 million shares. The market was spooked by the firing of Indonesia’s central bank governor by President Suharto, but confidence was restored on the following day, when 129.3 million shares were traded.

The Canadian dollar gained 9 basis points on its American counterpart, finishing the week at US69.70cents. The loonie also gained ground against the pound, but lost some on the deutschmark. The exchange rate between the yen and loonie remained unchanged.

On Feb. 18, gold was down US$1.15 from the previous week; the London morning fix was US$297.80 per oz. Also off were silver, which lost 37cents to finish at US$6.72 per oz., and platinum, which shaved US$7.50 to close at US$382 per oz.

The TSE’s gold and precious metals sub-index sank 249.83 points, or 3.7%, to land at 6401.31. Accordingly, gold producers suffered: Barrick Gold was off 85cents to close at $27.50; Placer Dome was down 70cents at $17.55; and Cameco was down $1.25 at $44.65.

Franco-Nevada ended the week $1.20 lower at $29.80, while sister company Euro-Nevada finished at $22.35, off $1.35.

One week has passed since Kinross Gold announced it was merging with New York-listed Amax Gold. Although the amalgamation will create the fifth-largest gold producer in North America, the news seems to have fallen on deaf ears, as the junior’s shares shed 5cents, ending the week at $5.15.

In a repeat performance of the previous report period, the TSE’s metals and minerals subgroup shed 19.6 points, or 0.5%, to end the week at 4077.32.

Nickel was 10cents lower at US$2.42 per lb., while lead broke even at US23cents per lb. Copper and zinc were each down 2cents to US74cents and US46cents per lb., respectively.

Despite the weaker metal prices, Rio Algom edged $1.25 higher to $27.90. Up 40cents each were Noranda, at $26.80, and Westmin Resources, at $5.80. Going the opposite direction were Inco, which fell 20cents to $25.40; Teck B-series, down 60cents at $19.60; and Falconbridge, down 70cents to $19.25.

Aurado Exploration was once again the hottest penny stock on the market. The junior is acquiring a 49% interest from a unit of Cominco in each of two properties near the San Nicolas massive sulphide discovery in Zacatecas state, Mexico. The news helped the issue rise 14cents to 41cents, representing a four-fold jump in two weeks.

The San Nicolas zone is being explored by partners Western Copper Holdings and Teck, which recently returned 155 metres of massive sulphides in drilling. The first 89 metres of that interval graded 1.38% copper, 2% zinc, 16.96 grams silver per tonne and 0.33 gram gold.

Western Copper dropped 85cents to end the week at $9. A total of 1.5 million of the company’s shares were traded.

Other active issues were Westley Minerals, which jumped 8cents to 16cents on a trading volume of 2.9 million shares. Less fortunate was Princeton Mining, which fell 3cents to 12cents, and Consolidated Nevada Goldfields, which dipped 2cents to 21cents.

Making its debut out of the penny stocks was Rex Mining, which increased 17cents to $1.05. The company is attempting to improve production at several of its kimberlite fissure mines in South Africa. The fissures are touted to hold 1.5 million carats of proven and probable reserves.