Alberta Stock Exchange Borealis in free fall

After trading at around $19 last January, the tightly held Borealis issue has dropped steadily to $1.70 this week. While Chairman Rodney Cox has attributed the free fall to short selling, a lack of progress at the company’s Northwest Territories exploration project may also be a factor.

In its recent report to shareholders, Cox said that a financing agreement designed to raise $5 million initially for exploration at the Fat Lake gold project has fallen through. “Mining activity at Fat Lake has been halted pending further funding or the joint-venturing of the property,” Cox said.

Meanwhile, Vancouver-based Brydon Ventures has successfully raised $1.24 million for exploration at the company’s Rossland gold venture in British Columbia. Antelope Resources holds a 50% interest in the Rossland project.

However, news that European Mining Finance recently “came aboard” for 250,000 shares at $1.20 each, failed to ignite the Bryndon issue. Trading on 52,400 shares, it dropped 4 cents to close at $1.35.

The Marshall Minerals issue gained 10 cents on news that the company has entered negotiations with East West Caribou Mining to mine and deliver ore from the Restigouche base metals property in New Brunswick to Caribou’s mill site.

Following a 105-hole drill program, open pit reserves at the Restigouche property stand at 1,158,950 tons of grade 7.71% zinc, 5.96% lead, 0.38% copper, 3.26 oz silver and 0.04 oz gold per ton.

The above reserves are based on a 6% cut-off grade for lead and zinc. Trading on 89,900 shares, Marshall closed at $1.65.

Gold City Resources remained steady on 50 cents despite annual earnings of 16 cents per share for the year- ended Oct, 1988 from revenues of over $2 million.

The company says it is undertaking a two-phase expansion program at its Indian River gold project in the Yukon, which is expected to produce 10,000 oz gold this year from four mining units.

A new gold discovery at Baloil Resources’ Sumit claims in British Columbia failed to attract much in the way of investor attention. The issue dropped 6 cents during trading to close at 55 cents .

Baloil has been working on a series of adits since 1987 and recently encountered what it called a “low grade gold system which appears to be mineable by open pit methods.”

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