Toronto Stock Exchange Indices advance into uncharted waters

The heady times on the Toronto Stock Exchange continued for yet another week as records fell like ten pins. The tse 300 composite index flew past its previous record (set last week) to 4,104.98 at today’s close. The index is enjoying the fruits of a strong weighting in resource issues which have been experiencing a full-fledged rally.

Gold bullion traded sideways at $465(US) today as traders watched the South African situation closely. For the first time in history, the National Union of Mineworkers, representing more than 200,000 black miners, has pulled off the big one — shutting down almost every gold mine in the country. In the past numerous threats of a walkout failed to materialize. Any extended shutdown could significantly impact on South Africa’s gold output by placing upward pressure on bullion prices.

As a result of the strike and ever- increasing tensions in the Persian Gulf, gold issues led the precious metals index to a high of 10,091.73 pts before settling back marginally to 10,053.03 pts today.

Not unexpectedly, the senior golds responded best to the upward momentum in gold prices. American Barrick Resources appears to be making the act of hitting a new high a weekly event. The issue surged to $32.13 — that’s more than $64 on the pre-split basis. At the end of June, the issue traded at less than $47.

Echo Bay Mines was also stronger at $36. On a pre-split basis, that translates to a whopping high of $72. Dome Mines got a vote of confidence from Dome Petroleums. The oil company shot down a $450 million offer from Giant Yellowknife Mines for a control block in the gold miner. Dome was steady at $22 while Giant traded at $31.50 — a new high. Obviously, investors are buying Giant for more than the potential Dome deal which failed. The issue has gained $3.76 in just two days. The company hopes to have 300,000 oz of annual gold production within five years.

Base metal miners continue to benefit from record low inventories and perkier demand for their products. Falconbridge Ltd was active at $29.3 8 as was Inco Ltd at $28.50. Noranda Inc traded a large 756,899 shares for a value of $28.5 million. The issue advanced marginally to $37.63. 1300

Golden Terrace Resources, which created waves last week by heading the volume leaders, retreated to $1.51 in active trading. During the week the issue briefly touched $3.75 before starting to correct downwards. The issue started its rapid rise at 30 cents just two weeks ago, fuelled by news of strong drill results from a gold play east of Red Lake, Ont.

Wilanour Resources which was sold by American Barrick to Robert Fasken, advanced smartly to $1.90 — up 85 cents for the week. Mr Fasken says a major plans to join Wilanour in a big effort at the company’s Red Lake area gold properties. Stroud Resources was also a winner, coming up with some good drill results southeast of Timmins, Ont. The issue was steady at $1.16.

Rouyn Mining Resources reached a new high of $7.50 before dipping back to $7 today. The company plans to begin producing gold next year from the first of three future mines near Rouyn, Que. Lac Minerals is a partner on two of the projects. Sullivan Mines survived a hostile takeover bid from Montreal junior St. Genevieve Resources. The company closed at $7.38. Sullivan plans to amalgamate with its major shareholder, Cambior Inc.

Queenston Gold announced a deal with Inco’s new gold vehicle, appropriately named Inco Gold (see front page stories). Queenston could be seeing early production from its 35%-owned Anoki gold deposit near Kirkland Lake, Ont. Inco is going underground on the deposit. Also, major programs are in the works for three other important properties within Queenston’s portfolio. The issue advanced to $2.75 before closing at $2.50. Controlling shareholders Joutel Resources and HSK Minerals were quiet at 50 cents and $1.65 respectively.