Montreal Exchange Drill holes disappoint

A languishing gold price and the threat of further economic slowdown are having a definite effect on the ME, where relatively light trading volumes continue. For the week ended May 1, daily volumes ranged between a scant 3.2 million and 4.8 million shares. The market portfolio closed the week where it started, while the mining and minerals index slipped more than 20 points. Disappointing investors were a number of news announcements, including unexciting results from two drill holes at the massive sulphide Louvicourt Twp. project of Aur Resources and Societe Miniere Louvem northeast of Val d’Or, Que. The core samples yielded sulphide mineralization but no economically significant values of copper, zinc or gold. Trading 66,400 shares, Louvem dropped $1.14 to $3.80, while Aur was down $1.09 on the week to $3.85 on a volume of 68,400.

Echo Bay Mines says it is no longer interested in becoming operator and part owner of two gold mines (Magino and Magnacon) in the Wawa area of northern Ontario which are currently being run by the Muscocho group. Instead, Echo Bay will retain, for the moment anyway, its equity interests in the three Muscocho companies involved. Echo Bay declined $1.25 to $15.75 on 26,900 shares, while Muscocho Explorations, trading 15,300 shares, remained steady at 36 cents.

From the Rouyn-Noranda, Que., area, Audrey Resources announced it was pulling out of its bid to acquire the mineral assets of Asamera Minerals, the asking price apparently being too high for Audrey’s liking. Trading 28,800 shares, Audrey fell 9 cents to $2.00. Asamera was untraded for the week.

Remaining active for another week, with just under 600,000 shares changing hands, was Ressources Val d’Or, which is in the midst of buying out its partner in the Bardome base metals project, Abcourt Mines. Val d’Or dropped 1 cents to close at 14 cents. Abcourt gained 1 cents to 18 cents on 21,500 shares.

Societe d’Exploration Miniere Vior and Societe d’Exploration Miniere Mazarin report the joint acquisition of two mining exploration properties in Quebec’s Casa Berardi region north of Joutel and La Sarre. Vior, trading 279,500 shares and falling 2 cents to $1.00, is already active in the area with two other partners at the Douay gold project. Mazarin gained 3 cents to 57 cents on 94,200 shares.