Toronto Stock Exchange Golds steams ahead over the 9,000 level

Golds picked up steam this week thanks to that on-again off-again U.S. dollar. An advance of 336.44 pts pushed the gold and silver index back above the 9,000 level to 9,233.24. On commodity markets gold was $7.50 an oz stronger this week with a close on the Montreal spot market of $458(US) bid $459(US) ask. Metals and minerals made an attractive 152.48 gain to 2,841.26, while the widely followed composite 300 closed this week 63.24 pts better at 3,767.47.

Big news hit mining circles today, with the emphasis on the word big. Three of this country’s most important gold mining companies have proposed a merger to form a single entity. Directors of Vancouver- based Placer Development and Toronto-based Dome Mines and Campbell Red Lake today approved in principle a p roposal for the three companies to amalgamate with a tax free conversion of shares and continue as one company.(See the story on page one for the full details.

If the merger goes through, the new company, as yet nameless, will be the largest North American gold mining company with a strong international and national asset base. Combined the three companies’ total net gold production last year was an astonishing 825,000 oz.

Though word of this proposed merger hit the street just a few hours ago, the market is already starting to react. Campbell Red Lake closed the week up $2.63 to $41, while Dome Mines was off 37 cents to $20.63. Placer closed at $47.25, up 50 cents .

Significant deep drill results from the Goldstrike project in the Carlin gold belt of Nevada is the prime reason for the huge $5.51 jump (nearly $5 of that just today) in shares of American Barrick Resources. As recalled, in early spring the company pulled a very hot intersection of 620 ft grading 0.3 oz gold per ton. Since that time, six additional holes have been completed and they seem to confirm the results of the original hole.

Franco Nevada Mining liked this news too as it receives royalty payments from the Goldstrike property. Franco closed the week at $11.25, up $1.25.

Rumour has reached our ears that HSK Minerals and Joutel Resources will close their purchase of four million shares of Queenston Gold Mines much sooner than the original June 30 deadline. HSK new-highed this week at $2.05 with a close of $1.50, while Joutel, this week’s second most active trader, ends at 60 cents after a win of 11 cents . Queenston ends at $2.75 after a 10 cents gain.

This week’s third most active trader is Toronto-based Ego Resources with over two million shares trading hands for a 5 cents gain to $1.75. Despite repeated calls to the company, The Northern Miner was not able to find out the reason behind the stock movement. At last report, back in late March, the company said it was contemplating work on its Goudreau area gold bet.

Scintilore Explorations new highed at $3 this week and closed at $2.45. It has filed a statement of claim with the Supreme Court of Ontario against prospectors John Larche and Don McKinnon. It has also named as defendants Teck Corp., Hemlo Gold Mines and International Corona.

Teck’s B shares lost $2.88 this week for a close of $23.13. Hemlo was off a quarter to $26.63, while Corona was off $1.76 to close at $46.

Lac Minerals meanwhile, new highed this week at $48.25 with a close of $47. No word yet from the Court of Appeal on the ownership of the Hemlo Page Williams mine.