McAvity still bullish on gold as Biron Bay connection shows (December 18, 1989)

As president of Toronto-based mining finance house MVP Capital (TSE), McAvity’s fortunes have flagged slightly along with his company’s investment in the Alaska- based Valdez Creek placer mine, which was shut down in October.

MVP holds a 91% stake in Camindex Mines which in turn has 51% of the Valdez Creek operation. The other 49% is held by American Barrick Resources (TSE) and Cambior Inc. (TSE).

Undaunted by what has been a difficult year for gold bugs, McAvity sees a major uptrend in the price of the yellow metal which could peak at $830-1,320(US) per oz in 1993. Gold is currently trading in the range of $415 per oz.

“For only the sixth time since free-trading was restored in the gold market in March 1968, the November, 1989, monthly gold price is crossing up through a declining 12-month moving average of the gold price,” says McAvity in his monthly newsletter deliberations.

“This is a basic technical confirmation of an uptrend after the extreme lows of a bear market have been seen,” he says.

While he remains confident that a gold price of $425-450(US) per oz would see the Valdez Creek mine reopening, McAvity is also backing another gold prospect.

Encouraged by drilling results at the Summit Gold project of Biron Bay Resources (ASE) and NovaGold Resources, McAvity recently bought 4,500 shares of Biron Bay for $1.15 each to hold 49,500.

Biron Bay has the option to earn a 60% stake for $4 million in NovaGold Resources’ Summit Gold project in New Mexico where 1.3 million tons of grade 0.19 oz gold per ton and 19 oz silver have been outlined. McAvity is a director of both Biron Bay and NovaGold.

“It looks like the current program will add to the tonnage and grade,” he told The Northern Miner.

Other mining executives who were active in the stock market during October and November include:

Atlantic Goldfields (COATS) former director William Burton sold 200,000 shares at $1.20 to hold 868,000.

Aur Resources (TSE) Vice- President Howard Stockford, who purchased 800 shares for $9.251 to hold 10,800.

Aur Resources (TSE) President James Gill exercised a put option to purchase 150,000 shares at $4.25 and sell 250,800 for $11.50-12.25 to hold 656,058.

Cambior Inc.’s (TSE) Exploration Vice-President of exploration Jean Boissonnault sold 1,000 shares at $15 to hold none.

Cambior director Robert De Coster also purchased 1,000 shares at $12.50 to hold 1,600. He also sold 1,000 warrants to hold none.

Central Crude (TSE) director Stephen Headford sold 1,000 shares for $5.50-5.375 to hold 21,000.

Kingswood Exploration (ASE) President Stephen McIntyre sold 3,000 shares at 30 cents to hold 112,327.

Louvem Mines (TSE) corporate Secretary Michel Jodoin sold 7,500 shares for $7.25-9.125 to hold 2,500. Neptune Resources director John Gairdner sold 18,000 shares for between 95 cents and $1.35 to hold 832,800 shares directly .

Neptune Resources director Douglas Belanger bought 49,000 shares for $1.24-1.31 to hold 49,000. Those shares can be converted to shares of ABM Gold (AMEX) as a result of the recent amalgamation of Neptune with ABM Gold.

Noble Peak Resources (ASE) director Murray Gibson bought 4,100 shares at $1 to hold 62,700.

Noranda Inc. (TSE) President (of Noranda Minerals’ zinc group) John White sold 1,000 shares at $25 to hold 66,756.

Northfield Capital (COATS) director John McBride bought 15,000 Northfield Capital subordinate shares at 15 cents and sold 55,000 for 21-26 cents to hold 45,000.

NovaGold Resources (TSE) director Jean Jacques Treyvaud bought 51,100 shares for $1.19- 1.30 through Swiss Canada Corp. and sold 28,300 for $1.35-1.43 to hold 32,800.

Pan East Resources (TSE) President Bernard Gallant sold 5,000 shares for $1.85-1.90 to hold 15,000 shares directly and indirectly.

Platinova Resources (TSE) President Robert Gannicott sold 25,000 shares for $1.50 to hold 4,580,639.

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