MINING MARKETS & INVESTMENT NEWS – EASTERN MARKETS — Golds rebound in buoyant Toronto market

The Toronto Stock Exchange recovered strongly from the previous week’s woes, as favourable Canadian and U.S. economic news and firmer commodity prices combined to put stocks in a good light. The TSE 300 composite index was up 263.18 points, or 4.2%, to 6,488.37, over the five trading days ended March 9.

Most of the sectors were strong, but the base metals sub-group lagged behind the broad market, rising only 1.3% to finish the period at 2,985.96. Except for nickel, which tacked on 4 cents to finish the period at US$2.26 per lb., base metal prices were lower or unchanged.

Inco resumed its upward trend during the report period, adding 90 cents to close at $18.60 on March 9 on a volume of 7.3 million shares. Heavily traded over the same period was Boliden, which was up 11 cents to $1.49, with 5.5 million shares changing hands.

Falconbridge also racked up a gain, adding 80 cents to close at $16.65, but this didn’t filter through to parent Noranda, which was 30 cents lower at $15.70. Cominco didn’t share the joy either, sliding 30 cents to $19.95, but Rio Algom was up 75 cents to $16.55 and Aur Resources added 8 cents to close at $2.

The golds outpaced the rest of the market, with the TSE gold and precious minerals index up 386.24 points to 5,749.04, for a gain of 7.2%. Gold was significantly stronger on the London bullion market, adding $4.85 over the five trading days to finish at US$291.50 per oz. on the morning of March 10. The other precious metals were all lower, though, with silver off 11 cents at US$5.24, platinum $2.50 lower at US$370.50, and palladium down $5 at US$345.

The most active gold was Placer Dome, which surged $2.10 to close at $18.85 on a volume of 15 million shares. Barrick Gold was up $1.80 to $28.60 as the market digested its takeover of Sutton Resources. Sutton was up 75 cents at $12.85, partly pulled by Barrick’s gains.

Also healthier were Kinross Gold, up 18 cents to $3.52, TVX Gold, which added 31 cents to close at $2.34, and Goldcorp, whose B-series shares were 70 cents higher at $10. Euro-Nevada Mining, always sensitive to rallies in the gold price, saw a $1.95 gain to end at $23.70, and stablemate Franco-Nevada Mining was $2.65 better at $26.

On the Montreal board, junior Plexmar Resources was 9 cents higher at 15 cents, on news that it had acquired a property in the Lac Rocher area of Quebec. VenCan Gold was down 16 cents to finish the period at 20 cents. VenCan, which leased its Edwards gold mine in north-central Ontario to River Gold for an advance royalty plus half of all operating profits, announced in January that it was submitting a dispute over the mine’s earnings to arbitration. River was up 20 cents at $3.75.

Among the Toronto juniors, Metallica Resources was up 36 cents to close at 91 cents on news of a successful drill hole at its El Morro project in Chile, which intersected 192 metres grading 0.64% copper and 0.22 gram gold per tonne.