Toronto Stock Exchange Trading still lively after all these weeks

Well into the third month of the new year and still the pace of trading has not slackened. If anything it’s becoming even more hair- raising with records being shattered right left and centre. The composite 300 climbed 160.79 pts over the week to set a new high of 3,780.89. The big news, however, comes from the oil department. Encouraged by a tentative recovery in oil future prices, the oil and gas index has shot up an amazing 436.75 pts to hit 4,118.9, a level not seen since September 1981.

While the metals and minerals index ended the week ahead by 105.85 pts to 2,604.32, the gold and silver index netted a 124.57 pt gain to reach 7,443.16. The price of the yellow metal closed on the Montreal spot market at $405(US)- ask $406(US) bid.

Not one to let the grass grow under its feet, St. Joe Canada has given production go-ahead at its Golden Patricia property in the Pickle Lake area of Ontario just 14 months after pulling the first disocvery hole. Drill-indicated reserves now stand at 283,000 tons averaging a high 0.88 oz gold per ton. The mine is expected to be on stream in mid-1988 and will be producing 40,000 oz of gold annually. This Toronto-based company is the wholly-owned subsidiary of tse listed St. Joe Gold which was off a quarter to $16.88.

It seems like that terrifc hole pulled by operator American Barrick Resources on its Goldstrike property located in the heart of the Carlin gold belt was on everyone’s lips this past week. And no wonder. The hole, all in sulphide, cut 620 ft of 0.3 oz gold per ton. There are four deep drill rigs currently working on the property. The news propelled American Barrick shares upwards $1.76 to $37.63.

The hole was good news too for Franco Nevada Mining Corp. which recieves a 4% net smelter royalty and a 5% net profit interest on the property. These shares were up $2.87 to $7.88.

Most active trader of the week is Noranda Inc. with a $1.88 gain to new high at $31.13. After four long years of dismal balance sheets, the company has posted a very handsome profit of $43.3 million quite a blockbuster improvement from the net loss of $253.9 million posted in 1985. Rumours have reached our ears that Noranda Exploration has just pulled a very rich drill hole in Newfoundland.

Though newly listed, Eastmain Resources is already making market waves with a 32 cents gain to 82 cents . The company is exploring for gold in the Eastmain River region of northwestern Quebec.

Placer Development is involved with Montreal-listed MSV Resources in the Eastmain area and the two are planning to drive a decline ramp at the Eastmain gold deposit in one month’s time. This deposit hosts reserves of over one million tons grading 0.45 oz gold per ton. Placer was off 88 cents to $40.75.

Canamax Resources hit a new high of $9.50 this week but has since settled to $9.38. The company now is 100% owner of the Kremzar gold project near Wawa after paying $9 million to Algoma Steel for its 50% interest which was held via Kremzar Gold Mines The property hosts reserves of over one million tons grading 0.25 oz gold per ton.

The company also tells us that the feasibility study is completed on the Ketza River project in the Yukon held with joint venture partner Pacific Trans Ocean and the results are favorable. Pacific closed the week at a new high of $3.80 after a 50 cents gain.

The ramp going down at the Nuinsco Resources’ Cameron Lake gold project in the Kenora area of Ontario has now advanced about 1,100 ft, almost half of its total length of about 2,700 ft. Echo Bay Mines, project operator closed at $45.88 after a gain of $3. Meanwhile Nuinsco new-highed at #3.40 over the week, but has since settled to $3. President Douglas Hume tells us activity is likewise high on Nuinsco’s Aldermac and Lac Dufault projects in Quebec held in joint venture with Alberta-listed Seadrift International.

No word yet from the court of appeal on the Lac Minerals, International Corona Resources lawsuit regarding ownership of the Page Williams Hemlo mine. Lac lost $1.75 to $38.88, while Corona was up a quarter to $39.75.

In other courtroom news, Murray Pezim has until March 20 to file arguments against Corona, while the latter has until March 27 to file counter arguments. Mr Pezim and his flagship company Galveston Resources are challenging Corona’s acquisition of a control block of Lacana Mining, which turns out to be this week’s third most active trader with a $1.88 advance to $14.38. Galveston, meanwhile, dropped $4.25 to $18.50.

In base metal circles, Falconbridge Ltd. was up 63 cents to $20.38, while Inco Ltd. traded unchanged $20.75. Cominco meanwhile new highed at $18.25 after a gain of $1.50.