Alberta Stock Exchange Gold shares drop

Investors reacted negatively to recent declines in the price of gold by launching a sell-off which sent many stocks to new lows during the week ended Oct. 16. Although the turmoil on stock markets has created some attractive purchasing opportunities, buyers seem content to stay on the sidelines. Shares of BMR Gold dropped 32 cents to $1.05, while Golden Pacific shed 49 cents to close at $5 on volume of 22,100 shares. BMR has signed a joint venture agreement with Vancouver-based Palms Mining to develop BMR’s America gold mine project in Nevada. Meanwhile, Golden Pacific recently announced plans to take over a company which sells computer software systems with GST capability for the retail industry.

Dingman Industries gave up some of the gains it made in recent weeks by dropping 24 cents to close at 85 cents on volume of 52,500 shares. The junior company made headlines this fall when it struck a deal with a Soviet firm to process gold concentrates from the Republic of Kazakhstan.

Mill City Gold traded 252,000 shares to close at 22 cents for a drop of 3 cents during the report period. Falling gold prices also spilled over to affect Ontex Resources which lost 9 cents to close at $2.05. The company reported a preliminary reserve estimate of 1.4 million tons grading 0.23 oz. gold per ton for the Brookbank deposit in which it has a 10% interest. Ontex is still in a court battle with TSE-listed Metalore over the Brookbank property.

Also giving up some of its recent gains was Flag Resources. It fell 9 cents to 57 cents on volume of 41,800 shares. Flag holds a strategic group of claims over a large gravity- magnetic anomaly near Sudbury, Ont., where Falconbridge Ltd. is exploring for base metals.

Shares of Valdez Gold began trading during the report period. The company has an indirect 51% interest in the Valdez Creek placer project where gold production recently resumed.