Montreal Exchange Syngold doubles

Wednesday close, Dec 10

Syngold Exploration, criticized here a month ago for spending flow- through money indiscriminately, has proved the value of the tax- incentive scheme with some drill results that made the market sit up and take notice. Kidd Creek Mines, a subsidiary of Falconbridge and operator on the Owl Creek West property, cut 174 ft grading an average of 0.18 including a 79-ft section grading 0.32. Syngold is funding the work on the Timmins-area project with flow- through money without which the project would likely not have gone ahead.

Syngold can earn a 25% interest by spending $1 million before the end of February. It can add 10% to that interest by spending another $400,000 by the end of February, 1988.

A month ago Syngold was trading good volume at less than $1 and just prior to announcing the drill results it was at about $1.20. After the results came out, the stock doubled to a year high of $2.50 before settling at $2.25 on 947,300 shares, the most active issue on the Montreal Exchange.

Cogesco continued to climb this week, too, gaining 20 cents to close at 84 cents on 489,900 shares. Good results from the Ribago property seem to have prompted this issue to come alive, but it has a number of other projects on the go as well.

Vior slipped 15 cents to $1.91 after a sustained climb that took it to a year high last week of $2.25. Some good results from overburden drilling on the Casa Berardi property in which it’s earning an interest were released, but the company also announced a move to diversify into the quarrying business.

Vior has bought Shield Quarry of Winnipeg for about $110,000 in cash and shares. Shield operates a quarry of red granite and Vior sees the purchase as providing steady cash flow.

Novamin touched a year high of $3.50 on the strength of drilling results from its joint venture with St. Joe Canada near Cadillac, Que., but it closed the week down 39 cents at $2.85 on 26,200 shares.

Gordex was down 11 cents to $1.73 on 42,000 shares despite some encouraging drill results from its Cape Spencer heap leach gold project in New Brunswick. The company produced 1,800 oz of gold from a demonstration heap and the recent drill results have added to the ore reserve potential of the property.