Montreal Exchange (August 26, 1991)

Political troubles in the Soviet Union didn’t sit too well with investors around the world, whose immediate reaction was to get out of the market. In Montreal, the pattern was no different. Both the market portfolio and mining and minerals index declining during the week ended Aug. 20, the former by 28.3 points and the latter by 11.6 points. Daily trading volumes ranged between 3.2 million and 5.8 million shares.

Growing gold producer Cambior had its share of announcements. The Val d’Or, Que.-based company reported second-quarter results which featured higher revenue and gold output but slightly lower net earnings compared with the same period last year. It also said it bought some base metal properties in the U.S. and put its signature to a mineral agreement covering the Omai gold project in Guyana, South America. Trading 118,100 shares, Cambior closed up 63 cents to $10.25.

Among the U.S. properties Cambior bought (through its American subsidiary) is the Carlota copper project in Arizona with four identified copper-oxide deposits. A feasibility study for the project is expected to be completed in 1993. At Omai, the mineral agreement outlines the business conditions for the development and operation of the project. Cambior’s partners in the Omai venture are Golden Star Resources, which closed unchanged at $1.25 on a volume of 22,500, and the Guyanese government.

Kewagama Gold Mines (Quebec), ahead by five cents to 90 cents on 215,100 shares, reported concluding an option agreement with Simcor Canada Holdings for property in Langevin and Bellechasse twps. in northwestern Quebec. Recently changing its name to Richmont Mines was Rouyn Mining Resources, which has a 50% interest in the Francoeur gold mining project near Rouyn-Noranda, Que. Richmont closed unchanged at 63 cents on 14,400 shares.