Wednesday close, Oct 15 Val d’Or mining company Louvem got a hefty shot in arm this week when a Swiss-based newsletter referred to it as the cheapest of all Canadian gold producers.
The European publication said Louvem could quadruple in market value over the next 12, and immediately market volume picked up. The stock went from $1.20 to $1.85 — a year high — before falling back to $1.55 on 477,300 shares.
Recently revived Massval Resources was the most active issue on the Montreal Exchange again this week, moving up 5 cents to close at 40 cents on 505,800 shares.
Investors seem to be keen on the company’s option to earn a 49% interest in Placer Development’s Eastmain gold property northeast of Chibougamau. However, there’s going to be some some manoeuvering before the deal is complete. Included in Massval’s reorganization is a stock consolidation, something the market usually considers a negative. Then there’s going to be a public offering that will likely result in dilution of existing shareholders’ equity.
Even so, the potential of the property seems to have caught the public’s interest. There’s already 1.2 million tons of reserves grading 0.32 oz gold per ton, and recent drill results seem pretty exciting.
There could be some new assays coming soon from a Casa Berardi property being worked by Inco in a joint venture with Vior and Cambior. The first hole, made public in late September, indicated anomalous gold in a wide zone and that was enough to pump up Vior’s stock. This week, Vior is moving up again reaching $1.45 on 139,100 shares
Cambior units were unchanged at $15.75 on volume of 449,100 while Inco was down 50 cents to $18.62 on 72,400 shares.
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