Montreal Exchange (October 07, 1991)

While most senior gold miners lost ground during the week ended Oct. 1, Cambior (TSE) picked up 38 cents to close at $9.38 on moderate volume.

Two major banks have agreed to underwrite a 330,000-oz. gold loan to finance construction of Cambior’s joint venture Omai project in Guyana. Omai hosts reserves of 44.7 million tons grading 0.047 oz. gold per ton and is expected to enter production in the first quarter of 1993.

Cambior shares Omai with Golden Star Resources (35%) and the Guyana government (5%). Golden Star gained 13 cents to close at $1.13. A feasibility study recently completed on the Lightning zone near Matheson, Ont., indicates that the deposit would provide an 18% rate of return, assuming a gold price of US$375.

More than half of the 5.5-million-ton deposit lies on ground shared by Freewest Resources (40%) and Hemlo Gold Mines (60%). The partners are also earning an interest in the portion of the zone held by Teddy Bear Valley Mines.

Freewest closed unchanged at $2.75 while Hemlo gained 13 cents to close at $9.63.

One of the week’s most active traders, Inco continued to lose ground in sympathy with the weak nickel price. The giant producer gave up 75 cents to close at $35.13 as nickel hovered well below US$3.50.

Other active traders included Vior Mining Exploration, which picked up seven cents to 33 cents, and Audrey Resources, which lost 13 cents to touch a 12-month low of $1.25.