STOCK MARKETS — Golds, base metals falter on the week

The Toronto Stock Exchange drifted this week in quiet trading, finishing the report period ended July 23, down 2 points to 4,918.59. Golds and base metals were slightly higher while industrial products — the sector that includes the technology and software stocks — fell the most.

The Canadian dollar closed fractionally lower at US72.91 cents and was nearly unchanged against the other major foreign currencies. The Bank of Canada cut the central bank rate a quarter-point to 4.75%, and the commercial banks responded with lower prime rates.

Gold showed a little strength on the London bullion market this week, adding 75 cents to reach US$384.40 per oz. at the July 24 morning fix. Platinum continued its recovery, tacking on $4.65 for the week to finish at US$396.65 per oz. Silver, which has missed out on the modest revival in precious metals, lost 2 cents on the week to reach US$4.98 per oz. on July 24.

TSE gold stocks saw minor gains, with the gold and precious metals sub-index rising 14.7 points to 10,821.00. Placer Dome was lower by 90 cents, closing at $29.90, while Barrick Gold added 40 cents to close at $36.40. TVX Gold, down 25 cents to $10, and Bema Gold, down 10 cents to $5, were also actively traded. Aber Resources, the diamond company on the gold index, picked up $1.10 for a close of $19 on the news that Kennecott is ready to start bulk sampling at its project in the Northwest Territories.

Hemlo Gold Mines pulled out all the stops for its farewell performance, rising $2.60 to $17.20. Its merger with Battle Mountain Gold (which rose $1.75 to close at $12) was approved by shareholders of both companies, and Hemlo will now trade as Battle Mountain Canada.

Base metal markets were mostly weaker, with nickel down 6 cents to US$3.16 per lb. Lead and zinc held at US35 cents and US45 cents, respectively, and copper, which has been extremely volatile, added 3 cents to US92 cents per lb.

The TSE metals and minerals sub-index rose 1.72 points to finish July 23 at 4,914.60. Inco, in its accustomed role as market leader, fell 60 cents to close at $40.80, but Diamond Fields Resources added $1.10 to finish at $37.35. Noranda was off 40 cents for a closing price of $26.60, and uranium miner Cameco picked up $2.25 to close at $65. Inmet Mining was 30 cents lower at $9.70 and Westmin, not on the index, was 25 cents higher at $7.25.

The juniors had a generally good week on the eastern exchanges, with Bre-X Minerals up $3.25 to $25.20 and Montreal-listed Bresea Resources, playing Stan to Bre-X’s Ollie, up $1.50 to $15.25. Takeover target Arequipa Resources was pushed 20 cents higher to $28, presumably by arbitrageurs convinced that another company is prepared to put up even more money than Barrick.

The Montreal Exchange had two big winners this week: Vior Mining rose 32 cents to 52 cents, and Armistice Resources, which had announced results of drilling at its Virginiatown, Ont., project, added 10 cents to close at 66 cents.

Cumberland Resources and Comaplex Minerals announced drill results from their Meliadine property in the Northwest Territories. Cumberland added 65 cents to close at $3.40, and Comaplex was 35 cents higher at $3.25.

Guyanor Ressources picked up $1 to close at $10 after releasing drill results from its St. Elie property in French Guiana. Parent Golden Star Resources was down 20 cents at $18.05.

Queenstake Resources, which arranged a warrant distribution to finance work in Peru, added 55 cents to close at $2.55. Nufort Resources was 40 cents higher at $1.45, and Cornucopia Resources was 35 cents better at $2.25.

Northern Orion Explorations fell 65 cents to $4.75. Vancouver-listed Miramar Mining exercised 1.9 million warrants for Northern Orion shares at $5.25.