Toronto Stock Exchange Golds lead Bay Street bull to even greater

The Bay Street bull has come down with a walloping case of spring fever and no one’s looking for a cure. The beast barrelled ahead 118.87 pts on the composite 300 this week, with more than half that amount gained today, to set yet another all time record at 3,593.46.

The golds provided the impetus as the price of the yellow metal rose on commodity markets. The TSE gold and silver index racked up an astonishing 727 pt gain on the week, again half of that chalked up just today, to muscle past the 7,000 barrier to 7,295.95. The price of the yellow metal was up too with a close on the Montreal spot market of $409(US)-bid $410(US) ask.

It’s not surprising that the majority of gold issues have been caught up in this euphoria and have risen to new highs. Among them Lac Minerals and International Corona.

It is nearly one year since Mr Justice Richard Holland handed down that bombshell decision transferring the ownership of the Page-Williams Hemlo mine to International Corona from Lac. Depending on which side of the fence investors found themselves at that time, this anniversary will either be a time of celebration or gnashing of teeth.

As recalled, an hour before the original decision was handed down, Lac shares were trading at $41.63, while Corona was at $13.63. But on the news of the judgment, Lac nosedived to $23.75, while Corona shot up to $25. The price of gold at that time was about $350(US)

Today with a decision still pending from the Ontario Court of Appeal on Judge Holland’s original ruling, Lac closed at $42, up $5.88 over the week, and higher than it was just prior to the original decision.

Corona settled at $40.38 after a gain of $2.62 on the week.

With the companies’ share price nose-to-nose, the market is obviously split on which way the court decision will go. As mentioned in last week’s column one wonders if this decision will come as it did last year on the Friday before the annual Prospectors and Developers Association convention which kicks off on March 8.

But despite the uncertainty of the lawsuit, Lac has had one of its most active years ever. Among the company’s many positive highlights is the news coming out from its Doyon mine in northwestern Quebec held in joint venture with Cambior Ltd. The results of a deep drilling program at this gold mine to confirm the continuation of the West zone and the Main orebody carry with them important implications for tonnage. (see front page story).

International Corona meanwhile has another court date marked on its calendar. In a petition filed with the Supreme Court of Ontario, Murray Pezim has asked the court to remove five Corona directors and appoint two of his associates who were recently dropped;, reverse the company’s purchase of a control block of shares of Lacana and forbid management from voting Corona shares held by subordinates. The hearing date is set for March 9.

For Royex Gold Mining which has a 38% stake in Corona, shares were up 93 cents to $5.38, while Mr Pezim’s Galveston Resources won $1.13 on the week to $24.13. And Teck Corp partners with Corona in the David Bell mine saw its B shares zoom up $4 to $31.25.

It looks as if Dome Mines is back in the trading fray, after spending months languishing in the $9 range. It was this week’s most active trader with a gain of $1.76 to $15.25. Campbell Red Lake had a great week as well with a win of $2.63 to $33.75.

Other issues that shared in the good news was American Barrick Resources new-highing at $34.63 after a gain of $6.13, Echo Bay Resources at $43 after winning $5.38 on the week. Belmoral Mines new- highed at $5.38 after a gain of $1.47; and Battle Mountain at $36.25 with a win of $5.38.