Toronto Stock Exchange Golds still bright as market moves higher

Wednesday close, Dec 3

The ownership of the Page- Williams Hemlo mine is now resting in the hands of the five judges who have spent the latter part of last month in the Ontario Court of Appeal listening to the final arguments of Lac Minerals and International Corona. A decision from the judges is not expected before the new year. Meanwhile, over the past week, Lac shares were off 63 cents to $27.38, while Corona gained $1.50 to $29.25. In today’s trading Lac was up 13 cents to $27.50, while Corona gained strength with a 38 cents advance to close at $29.63.

In other legal news, Cuvier Mines says it is starting action in the Supreme Court of Newfoundland for the recovery of a 20 claim block in the Mings Bight area of that province. The company says the action is against Noranda Exploration and a private company called Maritec. Cuvier says the claims were under contract for sale to Cuvier and subsidiary, Vancouver-listed Golden Hind Ventures. Cuvier alleges Maritec sold the claims to Noranda in breach of obligations to Cuvier and Golden Hind.

Over the week Cuvier was the most active gold with over one million shares trading hands for a price increase of 16 cents to new high at 60 cents and a close of 52 cents . In today’s trading the company gained a penny to close at 53 cents .

Campbell Red Lake feels bullish on underground production at the Detour Lake mine, northeast of Timmins. President Henry Brehaut tells us the company is proceeding on the expectation that the green light will be given. Over the week Campbell, which holds 50% interest in the project and is operator, was up 75 cents to $27.50, followed by a gain of 13 cents today for a close of $27.63.

Watch for the Red Dog to run in 1991. Cominco Ltd. has announced that it is putting this rich Alaskan zinc deposit into production. Over the week the company was trading unchanged at $13.50, while today it lost a quarter to close at $13.25. Teck Corp. which earlier this fall bought control of Cominco, has reported good news of its own. Net earnings for Teck in i ts fiscal year ended Sept 30 were $23.2 million or 42 cents per share, an increase from the $16.1 million or 30 cents per share posted in 1985. Teck’s B shares were trading unchanged today at $23.75.

Investors seem enthusiastic about the plans to re-activate and re-organize Black Hawk Mining. Four Toronto investors lead by Paul R. Little have purchased a 42 cents interest in the company from Denison Mines and Roman Corp. The new Black Hawk plans to increase capitalization and to acquire a private company called Platinova which has interests in platinum, gold and industrial metals prospects in Canada and in Greenland. Indeed, Platinova is involved with Teck on a preliminary reconnaissance of a Greenland platinum bet.

Over the week Black Hawk was up 45 cents to new high at 55 cents . It gained a nickel today to close at 60 cents .

Seabright Resources was busy and better this week with its A shares making a gain of $1.63 to new high at $10.38 on a volume of over 200,000. Today it closed at $11.13. It has just reported the results of a diamond drill hole completed on its Beaver Dam property in N.S. The hole penetrated the Austen zone at a vertical depth of 1,930 ft below surface, 700 ft below the deepest intersection to date. Assay values show two zones. The first is 9 ft from 1,941 ft 1,950 ft grading 0.10 oz gold per ton, while the second is 9.3 ft from 2,046.2 ft to 2,055.5 ft grading 0.153 oz gold per ton.

With all this activity, the composite 300 moved up 10.37 pts to 3,070.84 on the day with golds still bright on an 18.82 pt to reach 5,295.27. The price of the yellow metal closed on the Montreal spot market today at $391.40(US)bid $392.40(US) ask, up about $10 from last week’s close. Metals and minerals didn’t fare as well today with a drop of 10.21 pts to 2,064.97. Oils and gas, however, were better by 34.49 pts to 2,832.43.