Montreal Exchange Traders more confident

Investor confidence appears to be on the upswing again, judging by the positive results on the Montreal Exchange this week. And benefiting most seem to be the larger mining firms, such as Placer Dome, which traded more than one million shares, and Noranda-controlled Hemlo Gold, which moved more than 500,000 shares. Trading was relatively light throughout the week, which finished on a strong note with the mining and minerals index posting a gain of 70.1 pt.

Reporting encouraging drill results from the H vein at its Sleeping Giant gold project north of Amos, Que., was Perron Gold Mines, a Hughes-Lang group company aiming for production early next year. Perron closed down 12 cents to $2.30 on a volume of 45,400. Another Hughes-Lang company, D’Or Val Mines, which became a gold producer this year at a property near Val d’Or, Que., traded 16,200 shares and moved up 5 cents to $1.60. D’Or Val announced the signing of a letter of intent to enter into an option agreement to acquire a 100% interest in a copper-gold play in Mexico.

Gaining 15 cents to $3.65 with 18,300 shares changing hands was Cheni Gold Mines of Vancouver, which reported the near doubling of ore reserves at the Lawyers gold-silver property in north-central British Columbia. Cheni, following its summer drilling program, now estimates reserves in all categories on the property to be more than 1.9 million tons grading 0.19 oz gold per ton and 7.09 oz silver.

Working out a deal with Societe en Commandite Sofimines 1987 for $326,400 in exploration funding was St. Genevieve Resources, which jumped 25 cents to $4.25 on 197,700 shares. St. Genevieve will issue to Sofimines 65,280 flow-through shares at $3.85 per share. General partner of Sofimines, Gestion Soficorp Inc., has the option to subscribe for an additional 38,961 shares at the same price and shall receive, as compensation for services rendered to St. Genevieve, an additional 3,264 shares.

Jointly obtaining an option to acquire a 100% interest in a polymetallic prospect in Elmhirst Twp. in northwestern Ontario were Oz Exploration, which traded 32,000 shares and closed unchanged at 30 cents , and Farboro Resources, which slipped 6 cents to 16 cents on a volume of 59,000. To earn their option, the two companies must spend a total of $1 million on exploration and development work by Aug 31, 1989.

Recently listed for trading on the me was Fairfield Explorations of Rouyn-Noranda, Que.