STOCK MARKET — Toronto market up on good economic news

A milestone was reached this week at the Toronto Stock Exchange with the announcement that this year’s dollar-value-traded topped $147 billion. It is the second year in a row that a record was reached, with 1994’s record surpassing last year’s by 25%.

News of an upbeat outlook for corporate earnings, along with the lowest unemployment rate in three and a half years and a lower-than-expected federal deficit, enabled the TSE 300 composite index to gain 62.03 points. The TSE closed the report week ended Oct. 11 at 4,315.39.

The gold and precious metals sector also posted a small gain of 145.41 points, closing the week at 10,624.72.

In contrast, gold bullion was down, with the London afternoon gold fix on Oct. 11 set at US$387.90, off US$5.80 from a week ago.

The metals and minerals sector followed the composite index, making a slight gain of 57.88 points and closing the week at 4051.98.

However, most of the base metals prices were listless. Lead and zinc were unchanged at US29 cents and US47 cents per lb., respectively, while copper was off US1 cents per lb. to end the week at US$1.13 per lb. Nickel resisted the general malaise of the metals market, rising US8 cents per lb. to close at US$2.98 per lb.

The trend-setting Bank of Canada rate advanced marginally over the period, rising by 0.08%, to 5.62% from 5.54%. This action was followed by a corresponding move in the Canadian dollar, rising by US0.04 cents, to US74.40 cents from US74.36 cents.

Despite the setback in bullion prices, senior gold producers showed no trend in price changes and ended the week mixed. American Barrick Resources added a quarter to $34.50; Lac Minerals was unchanged at $16.63; Echo Bay Mines dropped 13 cents to $17.75; Placer Dome added 13 cents to $34.25 and Hemlo Gold Mines lost 13 cents to $14.87.

Hemlo announced it had reached an agreement in principal with Freewest Resources that would see the two companies amalgamate. Shareholders of Freewest would receive one share of Hemlo for every 4.1 Freewest shares owned. In addition, they would receive shares in a newly incorporated company whose assets would include $3 million in cash and all of Freewest’s existing exploration properties on a one-for-one basis. The deal would not include the Holloway joint venture and other related Harker-Holloway properties. Once Hemlo reaches a definitive agreement, completes due diligence and receives the necessary approvals, its stake in the Harker-Holloway project will rise to 84.65% from 50.79%. The remaining interest in the project is owned by Teddy Bear Valley Mines. Freewest shares jumped 70 cents to $3.70. Intermediate gold producers performed somewhat better than their senior counterparts this week. TVX Gold added 25 cents to $10.25; Agnico-Eagle edged up by 13 cents to $19.13; Kinross Gold added 13 cents to close at $7.39; and Cambior added 75 cents, up to $21.39.

Cambior has agreed to buy 40% of the outstanding shares of an Argentinian company that owns the Pachon copper project. With a mineral inventory of 500 million tonnes averaging 0.75% copper, Cambior plans to complete definition drilling and prefeasibility work to develop the resource further. News that drilling by River Gold Mines has found parallel zones, which could increase the reserve tonnage at the Eagle River property, had a positive effect on the stock. Shares of River Gold rose 15 cents to close at $2.55. In Ivory Coast, drilling by Eden Roc has intersected gold-bearing sulphide mineralization at its 68%-owned Afema property. This new development has enabled the company to increase contained reserves to more than 1.1 million oz. from just over 800,000 oz. Earlier this year, Eden Roc shares gained 50 cents to $6.50.

In neighboring Ghana, along the same structure that hosts the Afema property, Opawica Explorations has entered a joint venture with a foreign mining company concerning Opawica’s 2,000-sq.-km reconnaissance licence. Golden Shamrock Mines has agreed to spend up to $4 million on exploration over the next four years and buy 500,000 Opawica shares to earn a 60% interest in the concession. Opawica shares gained 20 cents to close at $2.90.