Montreal Exchange Essor earning option

Closing up 15 cents to 85 cents on a volume of 614,600 shares this week was Essor Exploration, which is earning a 50% interest in gold property in Malartic Twp. from Black Cliff Mines.

President Guy Morissette told The Northern Miner that while Essor must spend $2 million by December, 1988, to earn the 50% interest, he expects the company will meet its financial commitment for the property this year with its exploration program, which will involve underground work. Essor is the operator and manager.

General activity this week on the Montreal Exchange saw fairly heavy trading in terms of volume with both the market portfolio and the mining and minerals index experiencing losses.

President Guy Hebert of Audrey Resources told The Northern Miner that a production decision for the Mobrun project located 31 km northeast of Rouyn, Que., could be made in June. Audrey closed up $1.15 to $5.50, with 1,049,500 shares changing hands. The Mobrun project is a joint venture between Audrey (70%) and Minnova Inc (30%), with the first $8 million in profits from the project belonging to Audrey. Proven Mobrun reserves to date stand at 1.3 million tons grading 0.09 oz gold per ton; Mr Hebert said he expects the reserves to increase in size and the grade to improve, possibly to 0.11 oz. Should the decision be made to proceed, Mr Hebert said the mine could be in operation by July with a daily production rate of 1,000 tons of ore. In addition to the gold, silver, copper and zinc would also be recovered.

Awaiting results from a bulk sample from gold property in Malartic Twp. is Abitibi Metal Mines, which closed up 10 cents to 26 cents on a volume of 952,600. The bulk sample was collected this past winter.

Still drilling, both on surface and underground, at its Astoria gold property, located three km south of Rouyn, is Yorbeau Resources, which closed up 4 cents to 90 cents on a volume of 582,400. Drill-indicated reserves to date stand at 800,000 tons grading 0.2 oz. A company spokesman said a feasibility study on the property is expected to be completed by the fall of this year.

A new listing on the exchange is Freewest Resources of Montreal.