Toronto Stock Exchange Blockbuster week as composite sets record

A powerful price surge both north and south of the border has made it a banner week for investors. With a blockbuster gain of 104.59 pts over the reporting period, the widely followed composite 300 has been charting new ground above the 3,000 level and closed today at 3,155.04 pts. Meanwhile New York’s Dow Jones with a close today of 1,993.95 is a breath away from breaking through the important 2,000 barrier.

Toronto’s gold and silver index was likewise extremely strong with a gain of 354.55 over the reporting period to close at 5,526.34, its highest level since Oct 29, 1980. The price of the yellow metal has recently been on an upleg and closed on the Montreal spot market today spot market today at $401(US)-bid $402(US)-ask.

In this year’s expected environment of rising commodity prices and weakening paper currency values, it may not be surprising but it is certainly heartening to see, amidst the spate of new year portfolio recommendations, so many analysts bullish on golds and other resource issues. And this week’s most active gold, Royex Gold Mining, is on more than one anaylst buy list.

The operating arm of International Corona Resources Royex has now become the operator with a direct 30% interest in the Jolu gold property in northern Saskatchewan. Over the week Royex gained 50 cents to new high at $4.20 with a close of $4.10. Corona was up 63 cents to close at $29.78.

Another favourite among analysts is Mascot Gold Mines held 52.75% by Royex. Mascot plans to bring its Hedley B.C. gold mine into production this year. Mascot was up 50 cents over the week to close at an even $12.

International Corona and courtroom opponent Lac Minerals meanwhile are still awaiting the decision of the court of appeal over the ownership of the Page William Hemlo mine which hosts proven reserves of 3.3 million tons grading 0.181 oz gold per ton, and probable reserves of 48.7 million tons with an average grade of 0.152 oz gold per ton.

However, Lac has reported good news of its own to help ease the waiting. The company has established an initial ore reserve figure of 7.8 million tons of 0.187 on the new zone near the eastern boundary of its Bousquet gold property in northwestern Quebec. Over the week, Lac was up $1.50 to hit $30.25 with a close of $28.13, a substantial improvement over the 1986 low of $17.25 reached after the bombshell court decision transferring the Page-Williams to Corona.

Lac’s neighbour to the east of the Bousquet mine is Paul Penna’s Dumagami Mines which has about 7 million tons of ore on its side of the property boundary. The two companies are currently drilling a joint hole right on the boundary. Dumagami won $1.13 over the week to close at $11.63. With a gain of $2.75 to new high at $33.50, Echo Bay Mines was a big winner this week. This high profile company expects to have a net production of 475,000 oz of gold this year. Among its many projects is a $3.6 million underground program on Nuinsco Resources’ Cameron Lake property near Kenora Ont. Nuinsco won 11 cents over the week to close at $1.75.

Sunburst Exploration made market waves this week with a 6 cents gain to new high at 30 cents and close at 26 cents . The company is currently drilling at its optioned Pickle Lake area claims and plans to start next week with drilling in the Casa Berardi area on a 71-claim block in Dieppe Twp.

Nickel producers Falconbridge Ltd and Inco Ltd start the year on a positive note. Falconbridge was up a quarter to close at $17.13, while Inco advanced 50 cents to close at $16.75. The latter company will be under a new CEO come April when Charles Baird passes the reins to president Donald Phillips.

Noranda Inc was busy and better on the week with a gain of $1.25 to close at $20.88.