STOCK MARKETS — Profit-taking sends TSE marginally lower

Following several weeks of gains, investors on the Toronto Stock Market opted for profit-taking and, in doing so, sent the TSE 300 composite marginally lower. Over the 5-day report period ended June 27, the TSE 300 composite drifted downward to 4,520.92, off 26.45 points.

There was also little change in both the trend-setting Bank of Canada rate and the Canadian dollar. Last Tuesday, the Bank set its key rate at 6.97%, down two basis points, while the dollar managed to post a gain of US$0.28 to end the week at US72.77 cents.

Precious metals prices were all lower on the week, with gold posting the largest loss. The London morning gold fix per ounce on June 28 was US$389.30, off US$1.40; the fix for platinum was US$442, down US$0.75, while silver was reported at US$5.33, off US$0.16.

After hitting a new 52-week high last week, the gold and precious metals subgroup was off markedly. The subgroup ended at 10,741.32, down 2% from the previous week’s close.

Gold producers also fell victim to profit-taking, with most of the senior issues losing ground. Placer Dome lost 50 cents and ended at $36.88; Barrick Gold shed 75 cents to $35.50; and Echo Bay Mines was unchanged at $13.25. Despite the ongoing strike at the Golden Giant mine, Hemlo Gold Mines managed to add value, gaining 25 cents to close at $15.

Gold royalty companies Euro-Nevada Mining and Franco-Nevada Mining were mixed on the week, with the former gaining 50 cents while the latter dropped $4.50 to close at $71.50.

Base metal prices, for the most part, were up, with nickel posting the largest gain. The London settlement price on June 28 was US$3.71 per lb., up US20 cents.

The two senior nickel producers followed the price of the underlying commodity and increased: Inco rose by $1 to close at $38.25, while Falconbridge added 25 cents to end at $25.25.

More than 530,000 shares of Wheaton River Minerals changed hands, making it the second-largest volume-trading issue of the week. The company released drill results from three holes, indicating that high-grade gold mineralization of the Ursa deposit continues at depth. After more than doubling last week, Wheaton River shares lost 10 cents to close at $2.90.

Preliminary reports from consultants, regarding the feasibility study being completed at the Bibiani gold project, helped International Gold Resources hit a new 52-week high. Reports suggest the Bibiani property in southwestern Ghana will produce 300,000 oz. in the first full year of production and 200,000 oz. in each of the following two years. IGR hit $5.25 before settling back to $4.88, up 63 cents.

Following the completion of a 68-hole, 17,850-ft. drill program, Campbell Resources announced that eight new gold zones have been discovered on its Santa Gertrudis gold property in northern Mexico. After completing additional infill drilling, the company intends to calculate minable reserves for the new zones. Campbell shares hit a new 52-week high of $1.25 before rolling back to $1.12, down 3 cents.

Two stocks on the Montreal Exchange posted dramatic gains last week. Continental Precious Minerals found nickel anomalies on a 400-sq.-km area within its Baffin Island claims. The company plans to sell a 42% interest in the properties to Vancouver-listed International Capri Resources. Continental hit $2.55 before ending at $2.50, up 50 cents.

Alberta-listed Bre-X Minerals once again increased resources at its Busang gold project in Indonesia. A new calculation, based on assay data and geological information from 76 holes, indicates the Central zone holds a resource of 2.3 million oz.; it is believed that, in total, the property could hold between 6 and 8 million oz. Bresea Resources, which holds a 25% stake in Bre-X, hit a new 52-week high of $7.50 before closing at $7.13, up $1.38.

Silver explorer United Keno Hill Mines announced that exploration in the Yukon has enabled it to expand resources at three past-producing mines there. Total resources now stand at 428,500 tons averaging 34.1 oz. silver per ton. Shares of United Keno responded by gaining 28 cents to $2.35.