Montreal Exchange Sullivan active

Several upbeat trends conspired to once again give an impressive lift to trading on the Montreal Exchange, including rising commodity prices, especially in base metals, signals of rising profit pictures for the second quarter, and even the expectation that the U.S. trade deficit, although headed for a record $200 billion this year, for the month of May could be as low as $11 billion.

Maufort Inc. was again one of the major movers on the exchange in the period, trading 849,400 shares, although it fell off 4 cents to close at $1.66 per share. No further news had been received from the company, which in the previous week had reported significant results from a gold prospect in the Val d’Or area of Quebec.

Close to a million shares (958,400 to be exact, rating as the most active on the Montreal board) traded hands for North American Rare Metals, and the stock price leaped 70 cents to close at $1.70. As reported in last week’s issue, North American and partner Dundee-Palliser continue to get encouraging results from a major drill program on their joint venture gold prospect in Vezza Twp., just south of Matagami in northwestern Quebec.

Sullivan Mines, which is trying hard to fend off a takeover bid by Ste. Genevieve Resources, was very active, trading 779,300 shares and climbing 13 cents to close at $7. The company has officially opposed the Ste. Genevieve bid, and is proposing a merger instead with Cambior Inc., (front page story) which wants to increase its Sullivan interest to more than 50% (now at around 35%).

Exploration Essor advanced 20 cents on heavy volume to close at $1.40. The company has reported encouraging results from drilling on the Aiguebelle property in Quebec, and is planning a second drill program to verify what it is calling an important auriferous structure.

With trading suspended earlier in the week, Greenstone Resources on resumption of trading advanced by $1.15 to $7.85. Greenstone reports high gold values in an initial drill program on the Gwillim gold property in the Chibougamau area of Quebec, with operating partners Flanagan McAdam Resources and Muscocho Explorations.