Toronto Stock Exchange Profit taking terminates market winning

What initially appeared to be the start of another record breaking week on the Toronto Stock Exchange, has turned into a week of profit taking. Following a record high of 4,112.86 pts early in our review week, the tse composite index has lost ground for the past four consecutive trading days. Today the index gave up another 15.6 pts to 4,016.9 pts.

The downward correction comes as no surprise to market watchers. The tse has been setting a blistering pace this month, primarily led by the resource sector, and a bout of profit taking is par for the course.

Gold, which has been naturally volatile, was steady at $455 (US) at the close. The lack of direction was reflected in the price of most gold shares, which traded listlessly. The gold and silver index was up marginally by 71 pts to 9,720.4 pts. Most investors appear relatively calm about the strike organized by the 250,000-member National Union of Mineworkers in South Africa. Investors, especially Europeans with large exposures to South African golds, are merely waiting for the strike to end.

PlacerDome, which began trading this week, was active at $26 as 710,000 shares exchanged hands for a value of $18.1 million. Controlled by Placer management, the new company is the largest gold producer outside of South Africa and the Soviet Union. American Barrick Resources held on to $30.13 at the close. Surprisingly, the threat of losing its crown jewel, the Mercur mine to a law suit, has hurt the issue very little. Barrick also announced a huge increase in overall company reserves to 6.1 million oz.

Getty Resources was active at $15.50. However, the issue appears to be hurting from comments made by Noranda Inc. which downplayed their joint-ventured Tundra gold deposit in the N.W.T. Noranda officials say the Tundra deposit is not like Hemlo geologically. Who ever said it was? The Tundra has been referred to as Hemlo like in size (N.M., July 6/87).

The exploration junior of the week is Roxmark Mines which doubled on huge volume to 57 cents . Today the issue traded 247,000 shares. The price rise was solely attributed to an exclusive story in The Northern Miner in the previous week which detailed the company’s plans for early production.from the Magnet mine near Geraldton, Ont.

Pronto Explorations was also active on news that drilling cut a 13.4-ft section grading 0.38 oz gold per ton. The property is near Sudbury, Ont. Another company entering the Robert Fasken fold (Pronto is also under his control), is Wilanour Resources. Although the deal has not been completed, Wilanour soared to a new high of $2.85 today, before closing at $2.50. Just last week the issue was at $1.85. American Barrick plans to sell the company to Mr Fasken.

Westmin Resources could have a big gold mine on its hands in the near future. The company is working at the Big Missouri project near Stewart, B.C. Latest drill results are superb, indicating a large tonnage low grade Mascot-type gold mine is in the making here. Westmin was steady at $13.88. Junior partners Silbak Premier Mines and Tournigan Mining Explorations trade on Vancouver.

Vedron Ltd perked up on news that it will not merge with Belmoral Mines. Vedron closed at $4.50 whereas Belmoral was quiet at $7. The two companies are working on Vedron’s Timmins, Ont., area gold project. Queenston Gold was back in the news. American Barrick plans to take another crack at the Pandora mine in Quebec. The former producer has potential open pit reserves of one million tons. Queenston, which closed at $2.60, gets carried for 25%.