One of the highest flyers on Alberta during the past month has been Shabu Gold Mines. The issue, which came out at 35 cents in February, soared past $11 today. Unbelievable as it may sound, Shabu’s only asset is a grass-roots gold play east of Red Lake, Ont., near Shabumeni Lake which was purchased from its president for 2.5 million shares. As far as we can tell, no results have ever been released from Shabu’s program which would warrant such a price rise. At $11 and with 3.75 million shares issued, Shabu is capitalized at an outrageous $41 million. Repeated calls to the company’s office in Calgary remain unanswered.
Monte Carlo Gold Mines, which was hammered back to $2 last week, made back the loss and advanced to $3.05. The company has a gold concession on the Caribbean island of Aruba. In a strangely worded press release, President Bruce Leatherberry says that a quartz vein found by a “metal discriminator” contained “nuggets of free gold comparable in size to twenty five and fifty cent pieces.” Maybe they’ve unearthed some old pirate booty?
Volume leader Sweany Gold remained unchanged at 15 cents . The company has released encouraging drill results from a gold play near Beardmore, Ont. Zahavy Mines added 15 cents to $3.50. The company holds the first right of refusal on Getty Mines 50% interest in the Favourable Lake, Ont., gold project. Getty says it has a buyer for the stake who will pay $3.6 million cash. Zahavy is considering buying the 50%.
Barron Hunter Hargrave Strategic Resources added a nickel to 30 cents on good volume. The company is planning a drill program on an Arizona gold property with modest production history. The company will be testing two targets — high grade- bearing quartz veins and a quartz stockwork in a porphyry.
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