Alberta Stock Exchange Zahavy moves up (May 02, 1988)

The spectre of the Oct 19 market downturn may still be casting a long shadow across North American equity markets, but a number of Alberta gold stocks showed significant increases during trading this week.

They included the Zahavy Mines issue which led the way by gaining 60 cents to close at $3.60 on a volume of only 9,300 shares traded. Zahavy was responding to a recent announcement that Battle Mountain Gold of Houston, Tex., has acquired a 40% interest in the former company’s Favorable Lake property as part of an $40 million agreement with Noramco Mining.

A $3 million exploration program at Favourable Lake, including 3,000 m of diamond drilling, is focusing on one of six parallel gold and silver bearing shear zones.

While 443,000 shares of Mohave Gold changed hands, making it the biggest trader, the issue gained 20 cents to close at 50 cents .

In a concerted push toward production at Mohave’s Pilgrim mine property in Arizona, the company is involved in a 3-pronged program to test the extent of current gold reserves. They stand at 550,000 tons of 0.06 gold per ton.

The program calls for construction of a 200 ton per day cyanide leaching plant to process underground and open-pit ore, and the installation of hoisting facilities. In-fill and step-out drilling will also attempt to prove up current drill indicated reserves.

Trading on 284,000 shares, Penway Explorers gained an impressive 40 cents to close at 80 cents .

The company recently raised $1 million for exploration at its Labrador Trough property near Shefferville Que., and $500,000(US) to earn a 50% interest in a couple of Nevada- based low grade precious metal properties. The Nevada properties are the Diamond Silverado prospect near Eureka where a 500-ton- per-day heap leaching operation is expected to be under way this summer. Penway’s other Nevada interest is the Quartz Mountain bet 50 miles north of Tonapah.

News of a dewatering program at the old Aldermac mine property nine miles west of Rouyn-Noranda, sent Seadrift International’s share price up 45 cents . The issue closed at $2.75 on 80,100 shares traded.

After acquiring Nuinsco Resources’ 50% interest, Seadrift is currently exploring the No 8 zone which is several hundred feet east of the deepest drift level.

While shareholders gave Gold City Resources the go-ahead to take over Yukon Resource Ventures Ltd., the share price remained steady, closing at 38 cents on 3,300 shares. Under an agreement, Gold City will purchase all of Yukon’s outstanding shares in exchange for 750,000 shares of the company.