Montreal Exchange Maufort big mover

Springing back from a lacklustre performance last week, the Montreal Exchange this week surged into some new ground, reflecting market activity that was said by some observers to stem from relief on the part of investors that U.S. President Reagan (so far at least) has escaped direct implication in the Iran-contra affair from testimony by Lt-Col Oliver North. That notion was pooh-poohed by others who said the market surge was nothing more than a response to the fact that the U.S. dollar is bottoming out.

The big mover on the Montreal board was Maufort Inc., which traded 691,800 shares and closed up 48 cents to $1.71. Reporting results from exploration on its property about 30 miles west of Val d’Or, Que., the company said grab samples had given gold assays ranging from 0.18 oz gold per ton right on up to 59.26 oz per ton.

Augmitto Explorations, which traded 36,400 shares and advanced 1 cents to $1.92 a share, reports (in a front page story in this issue) that it is only a matter of weeks away from a production decision on its Beauchastel Twp. gold prospect in Rouyn, Que. If the go-ahead is given, the company looks to produce in the order of 57,000 oz gold a year from the new mine.

Among majors on the exchange, Noranda Inc., not too surprisingly in view of the current improvements in base metal markets, traded 359,700 shares and climbed by $4.25 to close at $32.50 a share. Noranda, too, is involved in a number of gold exploration joint ventures with promise, including several in Quebec.

Audrey Resources, which reported a substantial increase in income in its fiscal year ended Mar 31 (to $7,550,000, compared with $1,230,000 in the previous year), lost 24 cents on the week to close at $4.30, on volume of 55,60 0 shares.

Among the volume leaders was Golden Star Resources, which traded 246,000 shares, moved up by $1.25 to close at $7. The company recently concluded an agreement with Placer Development for further development and exploration on a gold deposit in Guyana, South America.

Also active was Abitibi Metals Mines which closed at 17 cents for no gain on the week, on volume of 338,500 shares. Abitibi is waiting for results of a 4,000-ton bulk sample taken from its Audet gold property in northwestern Quebec.