STOCK MARKETS — Composite index enables TSE to shine brightly

After losing the spotlight to the major American indexes over the past few weeks, the TSE 300 composite took centre stage once more, as investors driving it to a new 7-month high. The

composite jumped 63 points to close at 4,345.61 for the 5-day report period ended May 16.

The dollar also continued to climb against its U.S.

counterpart, gaining almost a third of a cent to end the period at US73.8. The trend-setting Bank of Canada rate was firm,

closing at 7.47%, unchanged from the previous week.

Precious metal prices were weaker, with the London fix on May 17 being US$5.38 per oz. silver (down US10 on the week) and gold remaining unchanged at US$383.40 per oz. Nevertheless, the gold and precious metals subgroup managed a modest gain of 1.1% to close at 9,762.56.

Senior gold producers were mixed, with Barrick Gold gaining 63 to $32.37; Hemlo Gold Mines adding 63 to $15.50; and Echo Bay Mines dropping 25 to $12.13. Placer Dome was unchanged at

$31.63.

In contrast to the weakness in precious metals prices, base metal prices were stronger, with nickel adding 31 to close at US$3.31 per lb. The metals and minerals subgroup mimicked base metal prices, rising by almost 4% to 4,123.45.

Market-watchers continue to monitor developments at the Voisey Bay nickel-cobalt-copper discovery in Labrador. Key player

Diamond Fields Resources announced results from 15 drill holes that suggest the mineralization has a strike length in excess of 1.8 km and extends to a depth of 190 metres.

Despite the unavailability of results of those holes that

indicate the extended strike length, sulphide mineralization intersected farther to the west was described as being

disseminated to semi-massive. Diamond Fields shares, while they traded briskly, posted only a small gain, adding $1 and ending at $55.38.

Diamond Fields’ partner, Teck, also posted a modest gain, with its B class shares adding 50 to close at $24.87. Inco and

Falconbridge, rumored to be wooing Diamond Fields for a piece of the pie, also posted gains. Shares of the former rose by $1.50 to close at $34, while the latter managed a 50 rise to end at

$21.38.

Montreal-listed Bresea Resources hit a new 52-week high of $2.95 before rolling back to end at $2.65, up 15 on the week. The company owns a 43% interest in Indonesian explorer Bre-X. The affiliate is currently drilling to upgrade reserves on its Busang property and has just released preliminary drill results from its Sangihe copper-gold porphyry property.

Definition drilling enabled Golden Star and Cambior to increase proven and probable reserves at their Omai gold mine in Guyana.

An additional 13.9 million grams (446,000 oz.) were outlined, entirely within the Wenot pit. Shares of Cambior were up by 13, closing at $15.50, while Golden Star shares lost ground, dropping 50 to close at $10.39.

A 2,000-metre drill program is under way on Tri Origin’s Straw Lake gold property, 300 km west of Thunder Bay, Ont. The program is designed to test geophysical anomalies found within schists which extend over a cumulative strike length of 4 km. Tri Origin shares lost 5 to close at $1.

St. Genevieve Resources acquired five exploration permits,

covering 450 sq. km in northeastern Haiti. The property

reportedly hosts several gold-copper-molybdenum porphyry

deposits, including the Douvray and Blondin. The junior will spend $6 million in the coming year to complete feasibility

studies on these two deposits, and to evaluate other targets on the property. St. Genevieve shares gained 4 to close at 58.

Results from drilling on Black Hawk Mining’s Hoyle Twp. gold property appear to be having a positive effect on the stock

price. Drilling has intersected six gold-bearing zones, with grades within the V-1 South contact zone running as high as 20.9 grams across 2 metres. More than 1.2 million Black Hawk shares changed hands as the stock rose 18 to close at 99.