Montreal Exchange Black Friday scare

A 4.8% drop in the mining and minerals index on the Friday contributed to an over-all weekly decline of more than 89 points; the market portfolio slipped 4% on the Friday and closed down on the week by more than 72 points. (A rally on the Monday recovered some of the lost ground.) Daily trading volumes ranged between 5.2 million and 12.7 million shares, the latter an indication of how busy investors were during the trading session following the Friday collapse.

Senior mining companies were among the favorite issues, with metals producer Noranda Inc. trading almost 540,000 shares and sliding $1.63 to $25.63, and gold-producer Placer Dome trading almost 460,000 shares and gaining 13 cents to $18.13. Corona Corp. was also among the leaders, with the A stock slipping 13 cents to $8.13 on a volume of almost 350,000.

In the Timmins, Ont., area, Placer Dome and Paymaster project partner American Reserve Mining report they are near dewatering the old gold mine’s workings, which reach about 6,000 ft below surface. Trading 16,800 shares, American Reserve moved up 2 cents to $1.15.

Belmoral Mines has been negotiating with Aur Resources for a deal to mill the latter’s ore from the Kierens mine and Norlartic property in the Val d’Or area. Once the papers are signed, Aur has agreed to lend Belmoral $4 million, on a short-term basis, the money to be used for working capital purposes. Belmoral dropped 1 cents to 63 cents on 23,500 shares, while Aur was down 88 cents to $11.50 with 144,700 shares changing hands.

The custom-milling agreement could lead to a closer relationship between the two companies, with Aur possibly assuming an equity position in Belmoral.

In the Val d’Or area, Exploration Denn’or and VSE-listed Orcana Resources are hoping to be able to raise sufficient funds to explore adjoining properties, the East Sullivan and Farquharson, for their polymetallic potential. Denn’or dipped 2 cents to 14 cents on 6,000 shares.

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