Montreal Exchange A year’s difference

There was little celebration one year ago today when stock markets around the globe collapsed. Not that it was the end of the world; on the contrary, investment life went on, albeit at a somewhat slower pace. In the mining sector, for example, developing properties have become producers and new exploration projects undertaken.

One of those new mines, the Magino in northern Ontario near Wawa, was recently officially opened by operator Muscocho Explorations, which slipped 9 on the week to $4 on 15,900 shares, and TSE-listed McNellen Resources. With drill-indicated reserves of 1.9 million tons grading 0.25 oz gold per ton to an average depth of 500 ft, the partners have undertaken an exploration campaign below that level to test for new tonnage. The Magino mine is Muscocho’s second gold producer; the company turns out gold (along with silver, zinc and lead) from its Montauban project near Quebec City.

In a 2-day fall during the October collapse last year, the ME experienced a loss of slightly more than 267 pts, with the market portfolio declining to 1,495 pts. Recovery has been a slow and at times uneven process; today that same index sits at about 1685 pts. Typical of what has been happening of late, this past week the market portfolio recorded a loss of almost 5 pts, while the mining and minerals index rose by more than 12 pts. Volume was fairly light, with the exception of one day’s trading of 7.5 million shares.

Aiming for a production startup in April, 1989, at its Beauchastel gold property near Rouyn-Noranda, Que., is Augmitto Explorations, which traded 12,300 shares and climbed 7 to $1.10. Construction of processing facilities are under way at the project.

Val d’Or, Que., area producer Belmoral Mines has acquired an option to earn a 50% interest in the Rand Malartic gold property from Nova-Cogesco Resources and TSE- listed NSR Resources, by spending $2.5 million on exploration work by March 31, 1993. Debt-free Belmoral, which closed unchanged at $1.80 with 15,000 shares changing hands, has been entering into property option agreements in an effort to shore up ore reserves which can be fed through its milling facilities. Nova-Cogesco closed un- changed at $1.20 on a volume of 6,700.

Newly listed on the ME is Virginia Gold Mines of Quebec City, which owns three properties in the state of Virginia in the U.S. and which recently completed a $750,000 offering involving shares and warrants. The company closed unchanged at 55 on 56,300 shares.