STOCK MARKETS — Dow Jones sets record, TSE posts solid gain

Markets in New York City and Toronto posted solid gains this week, resulting from the perception that, at least for the time being, low inflation and steady economic growth are upon us.

During the report week ended March 28, the Dow Jones industrial average hit a new record high, while the TSE 300 composite index managed to hit a 5-month high, breaking through the 4,300-level. By week’s end, the TSE composite settled back just below 4,300, closing at 4299.72 — up more than 53 points. Both the Canadian dollar and trend-setting Bank of Canada rate were largely unaffected over the report week. The latter was up marginally, rising seven basis points to 8.47% from 8.4%, while the latter was listless, drifting down by US0.03 to US71.30.

The price of gold also appears to be stuck in the doldrums. The London afternoon fix, set on March 29, was US$383 per oz., up only US75 from the previous week.

The two key subgroups, metals-and-minerals and gold-and-precious-metals, performed strongly, however. They posted respective gains of 4% and 1.3% The performance of stocks in the senior gold group was mixed, matching the uninspiring gold price. The largest gains were made by Barrick Gold, which was up 50 to end at $33.63, and Hemlo Gold Mines, which added 13 to end at $13.63. Echo Bay Mines dropped 25 to go to $13.50

What had been shaping up to be a heated battle between Placer Dome and Gold Fields over the Pipeline gold deposit in Nevada appears to have settled. Placer shares added 50 to close at $32.13

The latest results from drilling by Diamond Fields Resources at the Voisey Bay property suggest the main deposit has excellent continuity in both grade and thickness. In addition, four holes, drilled to test another geophysical anomaly zone, have uncovered additional mineralization. Initial results from the four holes encountered intervals of disseminated and semi-massive mineralization. Diamond Fields will continue to drill the two discoveries, as well as other exploration targets found on the 1,800 sq. km that it controls. Shares of Diamond Fields added 38 to end at $22.75

A drill program at the Piedras Verdes project in Mexico’s Sonora state enabled Azco Mining to increase the copper inventory to 1.3 billion lb. contained within 154 million tons averaging 0.41% copper. The project is expected to produce 100 million lb. of copper cathode for at least 10 years. Direct operating costs are expected to be less than 50 per lb. Azco shares closed at $2.55, up 25.

Meanwhile in southern Ecuador, Ecuadorian Minerals has outlined a preliminary resource of 1.6 million oz. gold at the Gaby porphyry gold joint-venture project. The yellow metal was also discovered in the nearby Tama zone, northeast of the Gaby. Further exploration and development work are planned, and a prefeasibility study is expected by the summer of 1996. Shares of Ecudorian were unchanged at 33.

Two junior gold producers, Great Lakes Minerals and Geomaque Explorations, announced plans to merge. When combined, the new entity will hold interests in three gold mines and one copper producer. Total production is projected at 55,000 oz. gold and 400,000 oz. silver in 1995 at a cash cost of US$207 per oz. gold- equivalent oz. Shares of Great Lakes were off 8 to $1.61, while Geomaque shares added 9 to end at $1.42.

At its first annual meeting, Anvil Range Mining announced development plans for the Grum lead-zinc deposit, part of the Faro mine property in the Yukon. The company plans to spend $70 million to complete work on the deposit before it can start shipping lead and zinc in October. Anvil’s shares dropped 10 to close at $4.90

Ottawa-based Trillion Resources has agreed to buy a 30% stake in the holding company of South Africa’s seventh-largest gold mining group. The purchase price is set at $5.5 million plus shares of a Trillion subsidiary exchangeable for 3.2 million Trillion common shares. Trillion lost 10 to end at $4.25.