STOCK MARKETS — Gold equities feed off bullion’s new

Gold bullion prices finally posted a strong gain after several weeks of sluggish movement. Prices rose US$9.05 per oz. to close our report week at US$385.30. The Toronto Stock Exchange gold and silver index closed up about 300 points at 10,373.79. It had hit a high of 11,660.65.

The rising gold price had the desired effect on the major gold equities. American Barrick closed up $1.63 to $33.50; Placer Dome rose by the same amount, closing at $32.13; Lac gained 50cents to close at $11.88; Echo Bay gained $1.13 to $17; Agnico Eagle was up $1.25 to $16.38; Franco Nevada gained $2.25 to close at $81.25; and Euro Nevada rose $1 to close at $42. At presstime, Breakwater Resources closed at 26cents, up 10cents over the week. Volume for the stock was an impressive 1.9 million shares. Huge volumes had also been recorded the previous week. The Northern Miner contacted Breakwater President Gordon Bub, who was at a loss to explain why the stock has been so active. The company is proceeding with a previously announced restructuring, having just completed a private placement of 2.5 million shares. In addition, Bub said, the company is drilling on the East Amphi gold property in Quebec, but no assay results were available.

A planned reorganization of CSA Management, Dickenson Mines Goldcorp and Wharf Resources had a positive effect on the first three stocks. CSA rose $1.33 to close at a new 52-week high of $11, Dickenson A and B shares were up $1.12 each to both closing at $8.13, while those of Goldcorp jumped $1.75 to close at a new 52-week high of $11.75. Wharf was unchanged at $12.50. Texas Star gained 20cents on the week to close at $4.10. The move was precipitated by a joint-venture agreement between Placer Dome and Texas Star over the latter’s Arkansas diamond project. Placer can earn a 51% interest in the project by reimbursing Texas Star for past exploration and funding future expenditures through to the feasibility study stage.

After reporting that kimberlite indicator minerals had been found in samples from its coastal and river diamond properties in the Northwest Territories, Caledonia Mining closed up 35cents

at $3.95.

Acadia Mineral Ventures continues to move up, following the signing of an agreement with Nunavut Tunngavik to explore and develop mineral deposits in the eastern Northwest Territories. The issue gained 9cents to close at 30cents on a volume of more than 1.1 million shares.

Sister companies Hardrock Extension and Roxmark Mines both gained on the week, largely in response to speculation about Asarco Exploration Co. of Canada’s activities in the Geraldton gold camp in northwestern Ontario. Asarco is earning 51% in Lac Minerals’ Geraldton project. Hardrock gained 12cents to close at 42cents, while Roxmark added 11cents to finish at 25cents. Even after reporting a net loss of $1.3 million in the last quarter of 1993, Dakota Mining managed to post an increase of $1.10 a share on a slim volume of 66,000 shares. In September, the company completed a financial reorganization whereby its assets and liabilities were revalued. The issue closed

at $3.85.

Orvana closed up $1.38 at $7.75 following news that its interests in Bolivia had been increased substantially. It has also been asked by the Bolivian government to contribute to a pilot study on the environmental impact of mining in historic camps.

In a separate news item, Orvana announced that Placer Dome had opted out of its agreement to explore the Thimble Mountain and Eholt properties in British Columbia. However, Orvana plans to continue with the exploration. New reports say that Noranda and Trelleborg are planning to sell a 25% stake in Falconbridge.