Montreal Exchange Latest Douay tonnage

Investors continued to be active but prices tumbled on the ME, with both the general market portfolio index and the mining and minerals index hitting new lows this year during the week ended Oct. 16. The market portfolio was off by almost 46 points and the mining and minerals index was down by more than 153 points. Daily trading volumes ranged between 4.7 million and 8.8 million shares. The three partners involved in the Douay gold project in Quebec’s Casa Berardi area report a preliminary reserve estimate of 584,000 tons grading 0.3 oz. gold per ton (at a cutoff grade of 0.08 oz.) after completing a 44-hole drill program at the West zone. Inco, Cambior and Societe d’Exploration Miniere Vior say the zone remains open at depth, especially down-plunge below the 600-ft. elevation and along strike to the west.

Further drilling at Douay is planned, the partners say. Trading 119,300 shares, Vior slipped 5 cents to 55 cents. Nickel giant Inco, trading 485,300 shares, dropped $3.63 to $27.50. Gold producer Cambior fell $2.75 to $10.25 on a volume of 245,400.

From Guyana in South America, OMAI gold project partners Cambior and Golden Star Resources report a preliminary reserve estimate of 52.4 million tons grading 0.046 oz. gold per ton. Results of a feasibility study for the project are expected in December. Trading 10,400 shares, Golden Star dropped 7 cents to $1.47.

Ressources Val d`Or says an agreement related to ownership and development of the Vendome zinc project north of Val d’Or, Que., involving itself, Abcourt Mines and a private company, has yet to be completed. Val d’Or is currently working on an option to purchase Abcourt’s interest in the project. Val d’Or closed unchanged at 3 cents on 63,500 shares, while Abcourt closed unchanged at 6 cents on 5,000 shares.

VSM Exploration is confident the current drilling program at its Grevet zinc project southeast of Matagami, Que., will boost reserves considerably. The junior and its project partner, French- controlled Serem-Quebec, recently added to their large land holdings in the area by optioning 40 adjacent claims (VSM-Serem may earn a 50% interest in the claims) from Noranda and BP Canada. VSM slipped 4 cents to $1.05 on 61,900 shares.