Montreal Exchange (April 04, 1988)

Placer Dome division

A major news item that Placer Dome wishes to create a Quebec mining division helped to brighten a trading week which saw both the market portfolio and mining and minerals index turn downwards. Trading volume was light-to-moderate throughout.

The giant mining firm Placer Dome, which slipped 38 cents to $15.75 on 171,000 shares, says it intends to merge, with shareholder approval, Kiena Gold Mines and Sigma Mines (Quebec). Placer Dome, which has substantial holdings in both companies, wants to boost its ownership in each to 100%. The Quebec division would have an annual gold production of about 130,000 oz. Kiena gained $1.88 to $14.38 on a volume of 9,500, while Sigma traded 900 shares and moved up 75 cents to $14.

A production decision by Cambior Inc. is expected within the next two months for the Flavrian property located near Rouyn-Noranda, Que., the company reports. The property came into the Cambior fold last year after the company swallowed Sullivan Mines. Cambior lost 13 cents to $15.88 with 290,500 shares changing hands.

Eider Resources, which closed unchanged at 14 cents on a volume of 59,600, reports abandonment (for the moment, anyway) of its Lake Rose gold project in northwestern Quebec. The company was disappointed in the results of a bulk sample about 6,000 tons in size.

Back in the news with yet another encouraging intersection (50 ft of 0.12 oz gold per ton) at its Launay/ Privat property, located about 30 miles northeast of Rouyn-Noranda, was Messeguay Mines, which slipped 8 cents to 40 cents on 95,000 shares. The company recently announced cutting a longer section with slightly better assay results in another hole from the same area of the property.

Also encouraged by recent drilling results, from the Vezza property located 15 miles south of Matagami, Que., were North American Rare Metals, which traded 29,600 shares and climbed 5 cents to 60 cents , and TSE-listed Dundee-Palliser Resources. A couple of 6.6-ft sections from one of the better holes returned values of 0.35 oz and 0.38 oz, the companies report.