Toronto Stock Exchange: Golds rule the roost with impressive gains

Wednesday close, Oct 8 The golds ruled the roost this week making impressive gains that broug ht the gold-silver index up to levels not seen since December 1980. This index closed the day at 5,376.79 pts, a huge 373.68 pt gain over last week’s close. The price of the yellow metal closed on the Montreal spot market today at $437(US)-ask $439(US)-bid, an over $10 increase since last week. The metals and minerals index gained 3 pts today to close at 2,166.35. The oil and gas index did well too with a gain of 13.51 pts. With all this momentum the widely followed composite 3,000 had little choice but to follow suit with a strong advance of 17.62 pts to close at 3,041.86.

With a successful completion of an exchange offering prospectus for 2 million shares at 20 cents per share, Joutel Resources, this week’s most active trader, has raised $400,000. Says Hugh Harbinson who with John Arnold and Charles Page acquired control of the company earlier this summer the money will enable the company to have enough working capital to get back on its feet. He tells us approximately $100,000 will go towards work on two properties: one in the Pickle Lake area in Ontario and the other near Stewart, B.C. The balance will be held as working capital. In today’s trading Joutel shares were up a penny to 25 cents .

Listed just a few weeks on the exchange, Highland-Crow Resources is already distinguishing itself as a steady mover. With a gain of 45 cents over the week, the company new- highed at $4.50. In today’s trading, 40 cents was tacked on for a close of $4.70. This company is expected to be making a decision soon to dewater the No 1 shaft at the former Pickle Crow mine near Pickle Lake, Ont.

Teck Corp. which has a 24.9% stake in Highland-Crow, has been generating its fair share of news lately. Last week a Teck-led international consortium bought control of Cominco Ltd. from parent Canadian Pacific. Teck also has an option to acquire a 100% interest in Vancouver-listed Fleck Resources’ Marathon, Ont., platinum- palladium play subject to a 50% net profits interest to Fleck. Teck’s B shares which were trading unchanged all week at $24.25 moved up 38 cents today for a close of $24.63.

Making waves in platinum circles this week was Toronto-based Madeleine Mines which has plans to bring its Lac des Iles platinum- palladium property near Thunder Bay, Ont into production. Madeleine was up 40 cents on the week to $3.65. In today’s trading it took a leap of 60 cents for a close of an even $4 with 89,500 shares changing hands.

Nose-to-nose marketwise, Lac Minerals and International Corona each closed the week at $26.75. The two will meet next month in the court of appeal concerning the Page-Williams mine. While Corona moved up $1.13 today to $27.88, Lac dipped 13 cents for a close of $26.63. Meanwhile, Lac’s joint venture partner on the Doyon gold mine in northwestern Quebec keeps moving up. This week it gained $1.63 for a close of $15.75, a new-high. It closed today at $16.25 after a 63 cents gain.

In the midst of a $12 million program which will completely revamp its half-a-century old grinding mill at its Red Lake, Ont mine, Campbell Red Lake was up smartly with a gain of $3.13 to $30.50 this week, a far cry from the $19.88 level it was trading early this spring. Today it dropped a quarter for a close of $30.25.

Dome Mines fared well this week too with a gain of 88 cents to $9.75, though it closed the day at $9.50. This company has stressed it will not be forced to go into receivership even if debt-laden Dome Petroleum were to go into receivership. Apparently, Dome’s $225 million guarantee of Dome Pete’s energy loan is backed by a line of credit with the Toronto-Dominion Bank which does not have to be repaid till 1996.

A production feasibility study is under way at Inco Ltd and Golden Knight Resources Golden Pond East property in the Casa Berardi area of Quebec. As well, drilling is scheduled to start immediately at the Golden Pond West property where previous work indicated a geological resource of over 2 million tons grading 0.21 oz gold per ton.

Over the week Inco was up 38 cents to reach $20.13 while the Knight advanced 88 cents to $9.88. Inco closed at $18.88 today after a drop of a quarter while its partner was up 13 cents for a close of $9.50.

As last week, both Golden Sceptre and Goliath Gold posted gains this week. Golden Sceptre added a dollar to reach $15, while Goliath was up 88 cents to $15.38. The two share a 50% interest in the Hemlo Golden Giant mine while operator Noranda holds the balance. As mentioned last week, rumors still abound that the three are coming up with a new public Hemlo company. Sceptre traded unchanged at $14.88 today while Golden closed at $16 after a gain of 63 cents . Noranda traded unchanged at $20.50.