Montreal Exchange Low holiday volumes

Low daily trading volumes, in the 2-million-share range, marked a week shortened by the year-end holidays. Both the market portfolio and the mining and minerals index managed advances during the week ended Dec. 31, the former by more than 12 points and the latter by 39.4 points. Preliminary year-end statistics indicate how challenging 1990 was for the ME. The total value of stock trading, at $15.6 billion, was down by more than 23% from 1989 (but up slightly from 1988). Volume of shares traded fell by 16% compared with 1989 (but was up by 6.2% compared with 1988). The number of equity transactions declined drastically in 1990 from the previous year.

At the Douay gold exploration project in Quebec’s Casa Berardi region, Inco, the operator, and Societe d’Exploration Miniere Vior have bought out third partner Cambior. Inco’s interest rises to 53% and Vior’s to 47%. Inco, which traded 30,100 shares, slipped 75 cents on the week to $29.25. Vior closed the year at 65 cents.

The purchase price is in proportion to the venture interest of the two remaining partners. (Cambior owned slightly less than 21%.) Vior is paying $204,750 plus 500,000 shares of Vior, and Inco is paying $545,250.

Much farther south, in Guyana in South America, Cambior, which gained 38 cents on the week to $12.13 on 48,600 shares, approved a feasibility study for the Omai gold project. Six engineering firms carried out the study under the supervision of Kilborn Inc. Cambior’s partner in the venture is Golden Star Resources, which moved up 10 cents to $1.30 on a volume of 18,300.

A diesel power supply is preferred (hydro-electricity is another option) for the project, which would be built at an estimated capital cost of US$151.5 million. Startup would be in 1993. Average annual production during the first three years would be an estimated 255,000 oz. gold.

From northeastern Ontario in the Wawa area, Hemlo Gold Mines says it has terminated talks with Muscocho Explorations and TSE- listed Flanagan McAdam Resources for the purchase of their interests in the mill, related infrastructures and surface rights at the Magnacon gold mine. Trading 12,400 shares, Hemlo Gold gained 13 cents to $10.75. Muscocho slipped 2 cents to 6 cents on 12,800 shares.