MINING MARKET & INVESTMENT NEWS — EASTERN MARKETS — TSE falls while resource markets mixed

The Toronto Stock Exchange experienced a broad trading range over the Sept. 9-15 report period, with the 300 index shedding 120.01 points to end at 5,857.04.

Resource stocks were mixed, with the gold and precious metals sub-index rising 167.02 points to 5,591.12 and the metals and minerals sub-group falling 76.52 points to 2,870.74.

Gold climbed another $5 during the period and, on the morning of Sept. 16, was valued at US$289.15 per oz. Platinum rose an equivalent amount, while silver edged ahead 10 cents to US$4.95.

Senior producer Barrick Gold rose 95 cents to $26.40, and Placer Dome climbed 30 cents to $17.75. Similarly, Franco-Nevada Mining increased $1.55 to $26.25, while sister company Euro-Nevada Mining ascended 50 cents to $19.

A revised takeover bid by Homestake Mining for Prime Resources helped push the latter up 70 cents to $12. The new offer allows Prime shareholders to exchange each of their shares for 0.74 of a Homestake Mining common share or 0.75 of a Homestake Canada exchangeable share.

On the morning of Sept. 16, nickel was trading at US$1.84 per lb. — 8 cents cheaper than a week ago. Copper and zinc each remained unchanged, though lead saw a penny chipped off its value.

Inco slipped 25 cents on nickel’s poor performance, ending the period at $15.55. Some analysts were speculating that the nickel giant and rival Falconbridge were close to a joint-venture agreement on the Voisey’s Bay project in Labrador. A report in a Sept. 14 issue of Platt’s Metals Week states that four of Falco’s engineers visited the property as “part of a routine information exchange . . . because the company’s Raglan project, in northern Quebec, falls in the same geological belt” — which was news to many geologists familiar with the region. Curiously, Inco announced, on the same day, that its board of directors adopted a new shareholder rights plan to ward off any potentially unfair takeover bids. The plan will replace the old one beginning Oct. 3 but can be implemented earlier if needed. At presstime, Inco was down another 15 cents and Falco was off 5 cents to $15.05.

Also down were: Teck B-series, off 15 cents to $13.20; Noranda, off 15 cents to $21.35; and Rio Algom, off $1.60 to $18.05. The three companies announced their intention to develop their Antamina copper-zinc joint venture in Peru.

In junior markets, America Mineral Fields was up $1.41 to $3.70. The company, together with partner Anglo American, continued negotiations with the Congolese government for development of the Kolwezi copper-cobalt tailings project. According to previous reports by America Mineral Fields, these discussions were scheduled to have wrapped up earlier this month.