STOCK MARKETS — Resource stocks add fire to TSE rally

Strength in the golds and metal miners pushed the Toronto Stock Exchange up 81.63 points (1.7%) for the trading period Jan. 17-23. The TSE 300 composite index closed at 4,847.62, near the record high set on Jan. 8. Volumes were also high, exceeding 90 million shares on four of the five trading days.

By noon, Jan. 24, the Canadian dollar was trading at US72.98 cents, down 0.08 cents from a week before, but the loony and the greenback were both leaving the other major foreign currencies well behind. The Bank of Canada’s base rate had risen a single basis point to 5.74% at the Tuesday Treasury bill auction, and the commercial prime rate was steady at 7.5%.

Gold finally broke through US$400 this week, for a Jan. 24 morning fix of US$403 per oz., up $4.10 from the previous week. Platinum was up $1.75 to US$421.50 per oz. and silver added 5 cents to US$5.54.

The TSE gold and precious metals sub-index rose strongly in response to the gold price, hitting a record 12,020.98 on Jan. 22. The sub-index eased slightly on Jan. 23, but was still 518.75 points higher than during the previous week, at 11,915.96.

All precious metals stocks were active, TVX Gold most of all. The market favorite of recent weeks was up 75 cents to $12.62 on a weekly volume of 12.8 million shares. The company signed an agreement with Triton Mining, enabling the senior to earn a 60% interest in Triton’s India gold project in Nicaragua. Placer Dome, which rose $1.88 to $38, saw 6.4 million shares change hands. Echo Bay Mines added 88 cents to $16.88, Barrick Gold $2 to $40.38, and Teck B 38 cents to $27. Cambior, moving back to production at its Omai mine, picked up another $1 to close at $17.75, but Omai partner Golden Star Resources was down 12 cents to $8.62. The only other loss on the sub-index was posted by Rayrock Resources, which fell 62 cents to $10.88.

Base metal prices were mixed on the London Metal Exchange. Copper slid some more, closing on Jan. 24 at US$1.15 per lb. for a 3 cents loss on the week; nickel was up 14 cents to US$3.68 per lb.; and lead tacked on 1 cents to US33 cents.

The base metal stocks rose steadily all week, closing at 4,917.58 on Jan. 23, up 230.11 points or 4.9% from the previous Tuesday. Noranda was the most actively traded miner, adding $1 to close at $26.38. Affiliate Falconbridge rose $1.62 to $29.50, and other nickel issues were up as well. Inco was $3 higher at $46, Sherritt 12 cents higher at $17, and Diamond Fields Resources 12 cents higher at $28. Inmet Mining moved up, adding a quarter to $9.50, and Cameco was up $3.25 to $58.38. Only Kerr Addison was lower, sliding $1 to $25.50.

Bresea Resources, a company with a 24% interest in Alberta listed Bre-X Minerals, continues to rise higher on the exploration successes of its affiliate. Shares of Bresea jumped 63 cents to hit a new 52-week high of $10.13.

Other companies involved in Indonesian exploration had mixed results. Yamana Resources continued to rise, adding 95 cents to close at $4.20, while Goldstake Explorations lost ground, closing at $1.25, down 7 cents.

Initial results from exploration of the Libertad concessions in Nicaragua helped Greenstone Resources add value over the trading period. Trenching and drilling resulted in on-strike extensions of the Mojon deposit, which is scheduled to enter production in early 1997. Two other areas of interest, east of the Mojon deposit, have also been uncovered. Greenstone shares tacked on 40 cents to end at $4.55.

Partners Tandem Resources and NAR Resources continue to roll on, setting new 52-week highs. Both companies are drilling their Guibord Twp. gold property in Ontario. More than 3.7 million Tandem shares changed hands as the stock hit 42.05, before falling back to $1.89, up by 44 cents. NAR shares hit a new high of $2.40, before slipping back to $2.10, up 55 cents on the week.

Interest in Murgor Resources appears to be running high once again, following news that the company has completed its latest phase of drilling at its Barry Twp. property in northwestern Quebec. Although no assay results were available, shares of the company vaulted 41 cents to $1.28.