Montreal Exchange Rouyn completes funding

It was an up-and-down week for the mining and minerals index on the Montreal Exchange, although resource issues continued to trade actively.

Rouyn Resources of Rouyn, Que., which earlier this month completed the financing on approximately $11.2 million worth of flow-through funds, closed up 10 cents to $4.75 of a volume of 299,400.

President Jean-Guy Rivard told The Northern Miner that the company plans to spend $4.5 million of the above amount on exploration and development on the Francoeur gold property, which is located 12 mi west of Rouyn and in which the company now has a 50% interest. (Lac Minerals owns the other 50%; Rouyn Resources is the property manager.) Mr Rivard said hopefully a mine will be in production on the property in 1988.

Two other gold projects will also benefit from the flow-through funding, the Wasamac property in which Rouyn is buying a 50% interest from Lac, and the Lake Fortune property.

Closing down 5 cents to 62 cents with 92,800 shares changing hands was Vassan Resources, which recently released results from a drilling program on the Hummingbird property in Malartic Twp. President Jacques Garneau reports drill hole VH-35 returned values of which the weighted average is 0.13 oz gold per ton over 5 ft.

Trading 811,800 shares and closing up 19 cents to 70 cents was Oasis Resources, which is involved in a search for platinum group metals with Falconbridge Ltd. at the Ungava property in Cape Smith, Que. Oasis can earn a 40% interest in the property if it carries out $1.75 million worth of explortion by Feb 28, 1988.

Closing down 34 cents to $3.80 on a volume of 255,500 was MSV Resources “A.” MSV is earning a 49% interest (from Placer Development) in the Eastmain gold deposit in northern Quebec, where the driving of a decline ramp is about to get under way.

Now trading on the Montreal Exchange are the units of Dumagami Mines and Noramco Mining.