STOCK MARKETS — Lower prices for metals drag down mining

Lower nickel and copper prices and a fickle gold price led many of the mining stocks on eastern markets into decline amid the slow trading of Easter week.

For our report period, the week ended April 13, copper lost 2 cents to 90 cents per lb. and nickel shed 3 cents to US$2.70 per lb. Gold bounced between US$336.50 and US$339.00 per oz., finally closing today (April 14) in London at US$338.25.

Responding to the poor performance by metals (with the exception of zinc), the Toronto Stock Exchange’s gold and silver index dropped 147 points to 6327 while the metals and minerals lost 4 points to 2866. The Montreal Exchange’s mining and minerals index lost 58 points to 1863.

Heavyweight nickel producer Inco finished the week down 75 cents at $29 and Metall Mining touched a new low of $11.13 compared with a 52-week high of $14.25.

Selling pressure from China continues to keep the cap on copper prices, which have dropped almost a dime from mid-March levels. Today, however, many of the gold stocks recovered as the yellow metal approached US$340. Among the winners were American Barrick Resources, up 63 cents to $23.25; Placer Dome, up 38 cents to $18.38; and Royal Oak Mines, up 60 cents to $4.75. The gold and silver index jumped 145.5 points, or 2.3%. Taking the top trading spot on a volume of almost 5.4 million was Societe Miniere Louvem, which finished the week unchanged at 20 cents but charged ahead to 34 cents in active trading today. Noranda has accepted an offer from St. Genevieve Resources to purchase its 11.5 million Louvem shares for 15 cents per share. The deal is expected to close April 27.

St. Genevieve finished the week up 20 cents to 95 cents, while Noranda added 25 cents to $20.88.

Yorbeau Resources was also active, picking up 12 cents to 52 cents after VSE-listed Republic Goldfields’ exercised its option to purchase a private company with an interest in the Ellison gold property nestled between Lac’s Bousquet and Doyon gold mines.

Title to the property is currently the subject of a legal dispute between the private company and Yorbeau. The litigation is at the appeal stage. Reporting a 3-metre intersection of 10% zinc on its Godfrey Twp. property near Timmins, Ont., Moneta Porcupine Mines closed up 2 cents to 37 cents. It added another 4 cents to 41 cents today.

Gearing up for a May startup at its Sleeping Giant gold mine near Amos, Que., Aurizon Mines touched a new high of 49 cents before closing at 47 cents for a gain of 5 cents.

Losing 4 cents to 18 cents on a volume of 2.2 million shares was International Mahogany. The company reports that its Tuina copper mine in Chile provided a negative cash flow last year because of startup problems and high smelter treatment charges. About two months ago, the company closed its Silver City operation in Utah because of low gold prices.

Four core drilling rigs are now turning on diamond properties in the Northwest Territories, and another two are on their way to properties held by Lytton Minerals and the Aur-Thunderwood-Consolidated Abitibi joint venture. Dia Met Minerals is finishing up its bulk sampling program with one reverse circulation rig.

As Dia Met prepared to process the bulk samples in Colorado, it surpassed the $50 level for the first time in months, closing at $51 for a gain of $2.13. Lytton Minerals, responding to exploration success as well as powerful promotion out of Paris, also performed well. It touched a new high of $6 before closing at a $5.75 for a gain of 75 cents.

Trading 440,000 shares, KWG Resources added 25 cents to $3.40. Ashton Mining of Australia has agreed to earn a 51% interest in KWG’s diamond claims in the James Bay Lowlands if drilling in the area produces “satisfactory”results. Continental Precious Minerals, up 4 cents to 80 cents, holds an interest in some of these claims.