Montreal Exchange Market woes persist

(Editor’s note: Please note this week’s me stocks table runs only to the Monday, Oct 26, close.)

Last week’s massive market “correction” continued on this week on the Montreal Exchange, with the general index, the market portfolio, sinking to its lowest level, 1,435.94 pt, since February, 1986. The market portfolio was off more than 108 pt (7%) that day (Oct 26); experiencing an even greater drop was the mining and minerals index, which was off 134.41 pt (9.4%). Although there were a couple of “up” days, the market finished the week in over-all decline. Having completed the purchase of about 33% of the outstanding shares of Louvem Inc. in a private placement, St. Genevieve Resources has announced an agreement with Soquem to purchase that company’s approximately 3.1 million shares of Louvem. The agreement, subject to regulatory approval, will give St. Genevieve about 55% of the common shares of Louvem before dilution. St. Genevieve closed the week at $4.05, down 90 cents , while Louvem moved up 25 cents to $2.20.

Signing an agreement with Ressources Minerales DeMontigny, which will contribute $10 million in exploration expenses during the next three years in return for an increased participation of up to 50% in the Siscoe-extension gold property (now called the DeMontigny mine) in northwestern Quebec, was Maufort Resources, which closed the week at $1.50, down 35 cents .

Syngold Exploration, which slipped 45 cents to $2.05, has announced encouraging drill results from a 1987 program on the Owl Creek West property at Timmins, Ont. Syngold’s partner and the operator is Kidd Creek Mines. The strike length there is reported to be a minimum 550 ft and to extend from a vertical depth of 500 ft to at least 1,700 ft.

Announcing the resumption of drilling at its Malartic gold property in northwestern Quebec was J.A.G. Mines, which moved down 5 cents to 39 cents . Last year’s drilling campaign delineated, the company reports, a mineralized structure along 1,200 m and to a depth of at least 220 m, and with a thickness varying between a few metres and 10 m.