Alberta Stock Exchange Investors stay away (January 08, 1990)

It was all quiet on the Alberta front this week as investors seemed reluctant to shrug off their New Year hangovers and return to the business of buying and selling resource stocks.

As a result, the week ended Jan. 2 was characterized by low volumes and a dearth of significant gains.

Diamond explorer Glencairn Explorations, the subject of a lengthy article in The Toronto Star, was one of the week’s volume leaders. The Toronto company is overseeing the development of its 50% owned Feijao Cru diamond deposit in Brazil after obtaining European investors’ support.

While working in what President Kerry Knoll describes as “primitive conditions,” Glencairn is hoping to be producing diamonds by May. The issue remained steady at 90 cents .

Stratabound Minerals, which has been strong lately as a result of drilling at its CNE base metal project in New Brunswick, greeted the new year as it finished the old. The issue gained 5 cents before closing at $1.75.

Savanna Resources, one of the other big traders in Alberta this week, is awaiting approval from Aur Resources which recently optioned its Turner-Albright project in Oregon. Aur’s decision on whether to exercise the option is contingent on results of metallurgical tests. That may explain why the Savanna issue dropped 29 cents to close at 33 cents .

Investors appear intrigued by Naxos Resources’ Shumway Lake gold property in British Columbia, as indicated by recent increases in the Naxos issue. Trading on 191,200 shares, it was up 2 cents this week before closing at $1. 10.

Naxos is claiming that atomic absorption methods used to test a 1,800-lb. sample taken from the Shumway property produced values as high as 6.3 oz. gold per ton.

News that Kingswood Explorations has agreed to earn a 50% stake in a group of Val d’Or, Que., base metal claims held by Noranda Exploration, sparked a 4 cents increase in the company’s share price. With a creditable 155,000 shares crossing the floor, Kingswood closed at 36 cents .

Having agreed to spend $1.2 million on an exploration program conducted by Noranda, Kingswood is encouraged by previous drilling on the Bourlamaque Twp. property. Highlights to a vertical depth of 500 ft. include 6 ft. of grade 0.36 oz. gold and 2.5 ft. of grade 0.6% copper.