STOCK MARKETS — Precious metal index jumps as gold price

Spurred on by a slight increase in the gold price, the Toronto Stock Exchange’s gold and silver index jumped 146.3 points to 5293 today (Dec. 16).

Gold added $US2.40 to close in London at US$337.30 per oz. Active gold stocks included American Barrick Resources, up 88 cents to $38.63; Placer Dome, up 50 cents to $15; and Lac Minerals, up 25 cents to $7.25. According to TSE statistics, the volume of shares traded on the TSE increased by 26% in November compared with the same month last year. Volume reached 712.3 million shares in the 11th month, up from 565.7 million a year earlier. Value increased by 5.1% to $6.83 billion.

A spokesman for the Exchange said diamond explorer Lytton Minerals emerged as one of the top traders of the month. About five million shares of the heavily promoted Lac de Gras participant changed hands. Lytton continued its active trading during the week ended Dec. 15, closing down 10 cents to $1.30 in a 52-week range of 6 cents-$1.44.

As investors eagerly awaited further results from the

Aber-Commonwealth-SouthernEra claims, other diamond stocks joined the most active list.

Top trader Pure Gold Resources lost 3 cents to 38 cents on a volume of 17.5 million shares. The junior, in partnership with Australia’s Ashton Mining, reports the recovery of diamond indicator minerals from its Lac de Gras property. Pure Gold has picked up additional ground around Lac de Gras as well as a property in Alberta.

Adding 25 cents to 99 cents was United Reef Petroleums, whose debt to major shareholder Canhorn Mining has been forgiven in exchange for a royalty on United’s African diamond prospect. Canhorn lost 5 cents to 60 cents. With the completion of a $4.2 million financing to continue diamond exploration and acquisitions, Aber Resources added 17 cents to $2.60. After touching a new 52-week low of 12 cents, Kirkland Lake diamond explorer Wheaton River Minerals closed at 18 cents for a gain of 3 cents. The company plans to launch a drilling program on its Morrissette Creek kimberlite property in the New Year.

Down 5 cents to 56 cents on the week, Queenston Mining reports that Battle Mountain Canada has elected not to exercise its option to earn a 50% interest in the Battle Mountain/HSK project gold project near Kirkland Lake, Ont. Shares of Exall Resources jumped 25 cents to $1 after the company announced it has an agreement with American Barrick to explore for gold (and other minerals) on properties in Mexico. Exall will have the option to retain a 25% interest in any project Barrick develops under the agreement. Touching a new high of $1.65 was Richmont Mines. The Caisse de Depot et Placement du Quebec has purchased 1.1 million common shares of Richmont and consequently becomes one of the junior’s major shareholders with 9.2% of all shares issued and outstanding. Richmont finished the week at $1.62 for a gain of 22 cents.

A 7 cents increase in the nickel price to US$2.60 failed to impress Inco investors, who knocked 25 cents off the nickel miner’s share price. Inco, which received some bad press after announcing that 85 administrative staff would be sent underground or face layoffs, closed at $28.63 in a 52-week range of $24.50-$39.50.

Among the senior stocks, Cameco stood out as a winner; it touched a new high of $18.38 on speculation that the federal and provincial governments would sell their remaining interests in the uranium producer. Cameco, also involved in the diamond play, recently signed an agreement to develop a gold deposit in the former Soviet Union. Its shares closed up $1 to $18.

After announcing that foreign investors had agreed to buy a debenture worth $7.2 million, International Platinum moved up 2 cents to 12 cents. In partnership with CDN-listed Swansea Gold Mines, the company will use the money to purchase properties on the PGE-bearing Bushveld Complex in South Africa.

Platinum opened at US$362.75 per oz. in London this morning, down 75 cents from a week earlier. Palladium added US$5 to US$112 per oz.

On the Montreal Exchange, Wrightbar Mines was up 2 cents to 12 cents on speculation that the junior may be subject to a takeover attempt. Belmoral Mines, which closed down 1.5 cents at 6.5 cents, has an 18% interest in Wrightbar.