Alberta Stock Exchange Trading lacklustre (July 06, 1987)

While trading on the Alberta Stock Exchange continued to be lacklustre, McSev Exploration was the week’s outstanding issue with 727,200 shares traded.

McSev, which remained steady to close at 40 cents , recently acquired a 49% working interest in Blue River Mines’ calcite deposit at Blue River, B.C. A small scale production facility is currently being erected on site.

Although a more modest 61,800 shares of Ontex Resources changed hands this week, the issue was up 65 cents to close at $4.00. COATS-listed Ontex is currently involved in a legal wrangle which is stalling the sinking of an 1,800-ft shaft on the Brookbank property near Beardmore, Ont.

In March l986, Ontex launched a legal suit claiming $500 million in damages or return of the property from Metalore Resources. The case is still pending.

Some promising drill results from Calgary-based Sunmist Energy ’86’s Eric Lake gold property in the Northwest Territories had a lesser effect on the stock price. It rose by just 2 cents to close at 55 cents on a volume of 38,000.

Results from the deepest hole intersected an 8.5 ft section with an uncut average grade of 1.05 oz gold per ton. That included a section of 4.29 oz over 1.5 ft at a vertical depth of 391 ft.

According to President R.H. Brondyke, the Eric Lake gold zone is structurally complex and will require additional drilling before it is fully defined.

However, Gunnar Gold’s option and joint venture agreement with Tyranex Gold, to earn a 50% interest in Tyranex’s option to purchase the Tyranite gold mine in Knight Twp., Ont., had much less impact on the issue. It remained at last week’s $2.00 closing level. Under the agreement Gunnar and partner Mill City Gold can earn their interest by spending $5 million o n development and feasibility studies between June l987 and August 1990. After that the companies can form a joint venture partnership to finance the Tyranite mine to production.

A former producer, the Tyranite Mine produced 31,352 oz of gold from 223,810 tons of ore grading 0.14 oz between l939 and l942.

After it started trading last week, City Gold Corp remained at $1.30 on a volume of 52,800 shares traded. A federal company with mining claims in Casa Berardi, Que. and La Ronge, Sask., City Gold carried out a limited amount of reverse circulation drilling on its 10,000 acre Normetal South property in Casa Berardi.