MINING MARKETS & INVESTMENT NEWS — EASTERN MARKETS — Base metals stir as yellow metal tests new lows

The Toronto Stock Exchange fell slightly over the period ended June 15, giving up modest gains made in the previous five trading days. The TSE 300 composite index was 71.88 points lower at 6,865.82, a loss of about 1% over the report period.

The base metals were strong again, with the TSE metals and minerals sub-group adding 2% to close 72.49 points higher at 3,679.54. Prices of the industrial metals continued to recover on the London Metal Exchange: nickel was up another 5 cents at US$2.32 per lb. on the June 16 morning ring, and aluminum was 2 cents higher at US60 cents. Both copper and zinc were fractionally higher, and lead was slightly weaker.

The price of Inco shares reflected the strength of its primary commodity, rising 70 cents to close at $23.85. Alcan was up 70 cents at $48. Falconbridge, which had been neglected by the market, regained $1.45 to close at $19.10. Cominco was 75 cents higher at $22.50.

Except for silver, which is showing renewed strength, the precious metals had a much poorer week than the base metals. Gold continued to fall, dipping $3.10 over the report period to US$258.90 on the LME morning fix of June 16. No new announcements came along to batter the price further, but continued low trading indicates that consumers are steering clear of the market. Silver added 8 cents to finish at US$5.01 per oz., platinum was down $8 at US$356 per oz., and palladium slipped $11 to close at US$338 per oz.

Of the golds, Placer Dome was the most active, with 13 million shares changing hands. It rose a nickel to finish the trading period at $15.75. Barrick Gold was up a quarter to close at $25.75. Other lively issues included Kinross Gold, down 2 cents at $2.50, and TVX Gold, which fell 17 cents to finish at $1.31.

Activity among the eastern juniors was relatively light, with the exception of Indochina Goldfield, which rose 7 cents to $1.35 on 4.4 million shares traded. Also up was Birim Goldfields, which climbed 4 cents to 30 cents on news of impressive drill results from its Dunkwa gold project in Ghana.

Going the opposite way was Gran Colombia, which plummeted 18 cents, to 50 cents, on news that it had struck a deal in the telecommunications industry. The junior has added its weight to a bandwagon already creaking under the heft of former explorers getting into the high-tech business.

Trading was light in the diamond sector, but Namibian Minerals jumped 45 cents to $5.25. Resources in the measured and indicated categories at the junior’s Luderitz Bay concession have been increased three-fold.

Not so lucky were Rex Diamond, which fell 23 cents to $3.12, and SouthernEra Resources, which fell 10 cents to $4.78. The latter recently provided an encouraging update on its properties in Angola and South Africa.