STOCK MARKETS — Bema leads pack in heavy TSE trading

It was summer outside, but trading levels on the Toronto Stock Exchange shot up to levels not usually seen except in RRSP season. Volumes were in the 70-to-90-million-share range, and the TSE 300 composite index was 102.65 points higher at 5,150.89 — a gain of 2% for the report period ended Aug. 20.

The big excitement was Bema Gold, which added $4.60 to close at $11.20 on a volume of 40.4 million shares. Bema and Vancouver-listed joint-venture partner Arizona Star Resources announced results from their Aldebaran property in Chile, and the market behaved as though the companies had a sure-fire mine on their hands.

The actual assay results from the drill holes at Aldebaran were low-grade, often below 1 gram gold per tonne, with a fraction of 1% copper. The mineralization is in unweathered sulphides, and will not be heap-leachable.

The Canadian dollar was fractionally higher against the U.S. dollar, up 3 basis points from the previous week to US72.78c at noon on Aug. 21. The European curencies were generally higher against the Loony, while the Japanese yen fell slightly.

Gold was up 35 cents from a week before, fixed at US$387.45 per oz. on the London bullion market Aug. 21. Silver was the big winner in the precious metals this week, surging 12 cents on Aug. 20 and adding 1 cents on the following day, to finish the report period at US$5.21. Platinum fell slightly, losing 50 cents on the week and finishing at US$399.50 per oz.

Palladium, too, had a bad week, losing about US$4 to reach an interbank trade rate of US$127.25 per oz.

The TSE golds were higher, with the sub-index rising 294.65 points to close at 11,819.57 on Aug. 20, a gain of 2.5%. Bema was the volume leader by a factor of 10; its nearest rival, Barrick Gold, saw 4 million shares cross the counter. Barrick was 80 cents lower at $37.90.

Barrick’s intended, Arequipa Resources, finished $1.45 higher at $30.15, close to the share-trade value offered by Barrick.

Among the other heavily traded golds, Placer Dome added 65 cents to close at $34, and TVX Gold was up 60 cents at $11.30. Diamond explorer Aber Resources was also busy and $1.05 higher at $22.60.

As always happens when the market gets bullish on gold, royalty firms Euro-Nevada MIning and Franco-Nevada Mining jumped. Euro-Nevada was $4.10 higher at $32.90, and Franco-Nevada was up $2.10 to close at $45.10. Two low-priced issues on the gold sub-index made substantial moves: Quest International (formerly Consolidated Ramrod) was up 53 cents to $1.75, and Campbell Resources added 11 cents to finish the report period at $1.56.

London base metals were volatile. Copper lost 2 cents from the previous week for a morning settlement price of 89 cents per lb. on Aug. 21. Zinc and lead were both 1 cents lower, while nickel rode up 3 cents to US$3.19.

The TSE base metals were strong, as institutional investors appeared to move into the resource stocks. The metals and minerals sub-index added 168.24 points to close Aug. 20 at 5,283.26, up 3.2% from the previous week. With its legal problems apparently behind it, Diamond Fields Resources was higher by $1.70, closing at $42, and Inco added $1.65 to close at $44.35. Falconbridge added 65 cents to close at $29.25, while parent Noranda put on $1 to finish at $29. Cameco was up $2.25 to $67.35.

Aur Resources was 70c higher at $9.85, and Cominco added $1.80 for a close of $30.95. International Curator rose $1.55 to $16.40.

Actively traded juniors included: Queenstake Resources, unchanged at $2.80 on 2.3 million shares; Sikaman Gold, up 1 cents to 9 cents on 4.8 million shares; and Bre-X Minerals, adding $1.05 to close at $24.95.

The most active of the Montreal juniors — once again — was Vior Mining, which fell 6 cents to $1.09. Yet, still, there have been no news releases from the company. Mimiska Mines and Mirandor Exploration both made large price moves — Mimiska adding 11 cents to close at 30 cents, and Mirandor picking up 29 cents to close at 65 cents. The two companies are affiliated, each with most of its properties in northwestern Quebec, but, as with Vior, there has been no news from either.