Alberta Stock Exchange Suffolk loses ground

With gold prices in the $427(US) per oz range and the market still sleepwalking through summer, it’s hardly surprising that there wasn’t much action during trading this week.

Volumes were generally low and big traders like Suffolk Resources and Gallery Gold Mines failed to gain much ground. Following a production decision at a placer gold property on the Ivory Coast of West Africa, Suffolk has been a consistently high trader in recent weeks. But it closed down 9 cents at 12 cents on a volume of 635,500 shares traded.

An annoucement that Borealis Explorations has arranged for a $25 million gold backed loan to finance exploration at the Fat Lake project in the Northwest Territories, did little to move the company’s share price.

Trading on a volume of 4,100, it gained 25 cents to close at $15.25. Under an agreement with Whytecliff Investments of New Jersey, Borealis is scheduled to receive $5 million before Oct 2 and the $25 million loan is on a non recourse basis.

The Octan Resources issue was up 15 cents to close at $1.75 following news that the company has acquired the rights to Terra Mines’ 500-ton- per-day Camsell milling facility and other equipment.

Octan President Martin Burger says he plans to use the facility, which he agreed to purchase for $6 million, to process ore from the El Bonanza claims at Great Bear Lake, Northwest Territories. Under an agreement, Terra will be issued 1.25 million Octan treasury shares.

Burger said pure silver deposits have been discovered on surface and drill results are expected soon.

The Goldbrook Exploration issue remained steady at 25 cents despite news that the company expects to increase reserves at its Wood Mountain gold project near Boulder, Colorado.

During a phase-1 exploration program, underground workings were rehabilitated and mapping and sampling programs were carried out. Future exploration targets include the Summit vein where a 3-ft intersection assayed at 4.85 oz gold.

Although a price wasn’t available at press time, Reymont Gold Mines has started trading on the Alberta Exchange. The company is involved in a $1 million project with Takla Gold Mines at a gold property 100 miles northeast of Smithers, B.C.

A drill-indicated inventory of 220,000 tons grading 0.4 oz gold per ton has been outlined on the Takla property which is undergoing 18,000 ft of diamond drilling.