Alberta Stock Exchange Guinness plummets

However, the lack of trading activity didn’t preclude a sudden change in the value of some Alberta gold stocks. They included the Guinness Gold issue which plummeted from $2.49 to close at $1.40 on a volume of 74,200 shares.

In late March, Guinness released the results of drilling at the Randall Lake property in northwestern Ontario, but company officials were unavailable for comment on the issue’s performance.

If investors are unsure about the current economic climate, they may be equally uncertain about a reserve update from Bitech Energy Resources’ Nugget Pond gold property in Newfoundland.

That may be why Bitech was down 3 cents on the session’s largest volume of 660,300 shares. The latest news from Newfoundland is a 122% increase in Nugget Pond gold reserves which now stand at 555,500 tons grading 0.350 oz gold per ton.

But at a time when investors are staying away from gold stocks, it is far from certain how big the Bitech/ Equity Silver project will turn out to be. “They have a nice little deposit but there isn’t enough tonnage there to support a large operation,” said Canarim Investment Corp. mining analyst Fred Knight. “There is a lot of stock out (about 28 million shares) and that might be one of the deterrents (preventing speculators from buying the stock),” said Knight.

The Savory Minerals issue made an impressive 30 cents gain on a volume of 132,500 shares before closing at $2.15. When last heard from, the former Springlake Resources had acquired a 50% interest in the former Camborne gold camp in British Columbia’s Revelstoke area.

The Camborne camp produced 17,487 oz gold from modest mining operations a number of years ago.

Gunnar Gold was also up 4 cents after releasing some encouraging results from the Fireweed polymetallic property near Smithers, B.C. Under a joint venture agreement with Canadian United Minerals, Gunnar can earn a 50% stake in Fireweed by spending $5 million. According to Gunnar, a major shear-breccia structure containing significant sulphide veining, has now been traced for more than 1,800 ft.

Previous drilling on the structure encountered 13 ft of 8.87% zinc.

Following consultations with the Alberta Securities Commission, placer gold miner Gold City Resources is preparing to revise financial statements previously issued for the year ended Oct 31, 1988.

Shareholders will have a chance to review the new statements at the company’s annual meeting June 16. However, the issue remained steady at 40 cents this week.

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