STOCK MARKETS — Rising gold stocks give TSE 300 index a

A firmer gold price rode to the rescue of an otherwise flat market during the week ended July 14 as the yellow metal hit US$350.90 in London, up US$3.25 from last week. Bolstered by the exaggerated influence of the gold-silver index, which rose 4% during the report period, The Toronto Stock Exchange share values posted successive gains despite concern over unemployment and the U.S. economy.

Led by gold stocks, Toronto’s composite 300 index went on a 5-day winning streak, which continued today, July 15, after the index added 8.86 points to close at 3472.03 on 30.4 million shares valued at $354 million. Agnico-Eagle Mines, Franco-Nevada Mining, Golden Star Resources, Goldex Mines and Pegasus Gold all touched 52-week highs as the yellow metal responded to bullish sentiment and weaknesses in the U.S dollar. After today’s 38 cents share price increase, American Barrick Resources was also nudging its annual high of $34.75. The stock closed at $34.63. Trouble in South Africa sparked platinum to a US$4.75-per-oz. advance this week.

“The natural resources sector keeps us on line when all else falls flat,” said ScotiaMcLeod analyst Fred Ketchen, who unlike other experts, doesn’t expect to see gold trading at US$365-375 per oz. by the end of this year. Given that gold has long been tagged a hedge against inflation, Ketchen says recent price increases stem from speculation and nothing more. In the news this week, Placer Dome emerged among the volume leaders as First Marathon Securities crossed a block of 191,200 shares at $13 each. Burns Fry also crossed 100,000 shares of gold miner Hemlo Gold Mines at $10.25, the level it traded today. Royal Oak Mines was even today at $2.15. Agnico-Eagle benefited from hopes that an intercept of 0.35 oz. gold per ton, reported almost one mile from the mine shaft, could breathe new life into the Eagle mine near Joutel, Que. The issue remained steady at $6.25. Shares of International Corona added 25 cents today after Homestake Mining extended its offer to acquire

all of the Vancouver company’s outstanding common and first preference shares until July 22. If the merger goes ahead, the combined company will emerge as North America’s largest gold producer with annual output of 1.8 million oz. While gold issues basked in the limelight of this week’s rally, base metals issues were comparatively quiet. Nevertheless, shares of Rio Algom peaked after the Ontario Municipal Employees Retirement Board, a pension fund, purchased 42,700 shares and 663,200 instalment receipts of Rio Algom. The board now owns 4.7 million common shares or 10.8%.

Trading at $1.24, in a narrow range of $1-1.40, Reclamation Management is on the verge of winning a $10-million contract to decommission Rio’s Quirke and Panel uranium mines at Elliot Lake, Ont. Pending final negotiations, President David Hayes says he expects the work to begin by mid-August. Still on the base metal front, Inco says it has withdrawn from negotiations concerning its possible purchase of a 72% interest in the Queensland nickel joint venture in Australia. The nickel issue was up 50 cents. Curragh and one of its contractors were charged this week with health and safety violations at the Faro zinc-lead mine northwest of Whitehorse, Yukon. But the market seemed to ignore the announcement, as Curragh remained unchanged at $3.20. After reporting 6-month earnings of 5 cents a share, nickel royalty company Redstone Resources closed at $4.25, down 5 cents.