Montreal Exchange: Prices in decline (February 08, 1988)

A falling gold price meant nothing but bad news for resource companies this week, with the mining and minerals index experiencing four consecutive days of decline, including an almost 46-pt drop one day. Volume throughout the week was fairly moderate, with the trading leaders being the “senior” companies such as Placer Dome and Echo Bay.

Reporting significant gold mineralization in two of three holes drilled in December at the Obalski mine property at Chibougamau, Que., was Syngold Exploration of Toronto, which slipped 19 cents to $1.35 on a volume of 5,000. The Obalski mine is a former gold producer. Syngold is earning a 50% interest in the property from Greenstone Resources, which dropped 4 cents to $3.60 on 3,000 shares.

Exploration last year of three zones of the Delta property in the Ungava area of northern Quebec indicates a possible and potential mineral inventory (nickel, copper and platinum group metals) of more than one million tonnes grading 2.63% nickel, 1.11% copper and 2.25 g per tonne pgm. Messeguay Mines and Oasis Resources report. Messeguay dropped 5 cents to 23 cents with 34,300 shares changing hands, while Oasis closed down 4 cents to 36 cents on 99,500 shares. Third partner in the exploration venture is Falconbridge Ltd., which slipped 88 cents to $18.88 on a volume of 87,800.

Perron Gold Mines, a Hughes- Lang company, reports it is well advanced in its underground exploration work at its Sleeping Giant project in northwestern Quebec. A production decision by Perron, which slipped 7 cents to $1.92 on 102,700 shares, is expected in the near future.

A $500,000 drilling program is under way on property in the Casa Berardi area of Quebec, north of Joutel, where Tandem Resources, which traded 26,200 shares and closed down 3 cents to 65 cents , is earning a one-third interest from Vancouver- listed Bresea Resources.

Recently boosting its interest to 9.9% in Toronto-listed Canacord Resources was MSV Resources, which purchased 1.36 million shares of Canacord at $1 per share. The msv A stock moved down 23 cents on the week to $2.25 on 81,500 shares.

Newly listed on the me is Globex Mining Enterprises of Rouyn- Noranda, Que.