As president of Toronto-based mining finance house MVP Capital (TSE), McAvity’s fortunes have flagged slightly along with his company’s investment in the Alaska- based Valdez Creek placer mine, which was shut down in October.
MVP holds a 91% stake in Camindex Mines which in turn has 51% of the Valdez Creek operation. The other 49% is held by American Barrick Resources (TSE) and Cambior Inc. (TSE).
Undaunted by what has been a difficult year for gold bugs, McAvity sees a major uptrend in the price of the yellow metal which could peak at $830-1,320(US) per oz in 1993. Gold is currently trading in the range of $415 per oz.
“For only the sixth time since free-trading was restored in the gold market in March 1968, the November, 1989, monthly gold price is crossing up through a declining 12-month moving average of the gold price,” says McAvity in his monthly newsletter deliberations.
“This is a basic technical confirmation of an uptrend after the extreme lows of a bear market have been seen,” he says.
While he remains confident that a gold price of $425-450(US) per oz would see the Valdez Creek mine reopening, McAvity is also backing another gold prospect.
Encouraged by drilling results at the Summit Gold project of Biron Bay Resources (ASE) and NovaGold Resources, McAvity recently bought 4,500 shares of Biron Bay for $1.15 each to hold 49,500.
Biron Bay has the option to earn a 60% stake for $4 million in NovaGold Resources’ Summit Gold project in New Mexico where 1.3 million tons of grade 0.19 oz gold per ton and 19 oz silver have been outlined. McAvity is a director of both Biron Bay and NovaGold.
“It looks like the current program will add to the tonnage and grade,” he told The Northern Miner.
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