Montreal Exchange Golden Pond drilling

News that a new gold mine in Quebec’s Casa Berardi region is being opened by Inco Gold and Golden Knight Resources is exciting enough, but now the two companies report a couple of significant intersections (83 ft of 0.84 oz gold per ton and 50.5 ft of 0.86 oz) from underground drilling on another section of the Golden Pond property. Current reserves (all classes) at the project stand at about 10 million tons grading 0.22 oz, not including any mineralization from this latest discovery. On the week, Inco Ltd. (parent firm of Inco Gold) traded 281,400 shares, slipping $1.25 to $36, while Golden Knight gained 13 cents to $10.13 on a volume of 2,600.

The up-and-down trading on the ME continued this holiday-shortened week, with the market portfolio showing a gain of almost 19 pts and the mining and minerals index a decline of about 18 pts. Light trading prevailed, with the exception of the week’s opening, when the day’s volume climbed to 6.4 million shares.

Messeguay Mines, which closed unchanged at 25 cents on 146,900 shares, reports a re-examination of drilling performed in 1987 revealed an extension of the A zone at its Launay-Privat property northeast of Rouyn-Noranda. The A zone, the company says, remains open to the east and at depth.

After taking over Cambior Inc.’s 51% interest in the Flordin gold property in Desjardins Twp. in northwestern Quebec, Bachelor Lake Gold Mines is planning to raise $2 million for more exploration work at the property, where two mineralized zones have been identified. Cambior traded 16,600 shares and moved down 38 cents to $14.38, while shares of Bachelor Lake did not trade ($1.45 bid, $1.75 ask).

Involved in a deep underground exploration program in the Kirkland Lake area of northern Ontario is Armistice Resources, which reports it has all but collected $6 million in flow-through share financing which is earmarked for construction of a headframe and a shaft-sinking program. Armistice closed unchanged at 65 cents with 43,900 shares changing hands.

Rio Algom, trading 2,100 shares and dropping 13 cents to $21.38, announced a deal is in the works with Kerr-McGee Corp. whereby Rio Algom would buy the U.S. company’s uranium properties in Wyoming and take over Kerr’s wholly- owned subsidiary Quivira Mining, which mines uranium in New Mexico. The purchase price would be $28.5 million(US).