STOCK MARKETS — Murgor leads as western markets stage

With the bugaboo of tax-loss selling now past, western markets managed to rebound during the holiday-shortened period ended Dec. 27, 1994.

The Vancouver Stock Exchange composite index added 22 points to close at the 744 level, while the resource index managed an impressive 54.35-point gain to 1,231.10.

Murgor Resources put in a star performance, leaping 91 cents to $1.35 on more than 3 million shares. Recent stripping on the company’s Barry Twp. property in northwestern Quebec uncovered a 100-to-130-ft.-wide, steeply dipping, gold-bearing shear zone. Surface grab samples across the zone returned values of up to 0.77 oz. gold per ton across a 60-ft.-wide section. Subsequent trenching across the shear returned 31.4 ft. grading 0.33 oz. and 5.25 ft. grading 0.42 oz. Work is continuing in the form of line-cutting and geophysical surveys.

The acquisition of a half interest in private company Maple Leaf Mining gives Oliver Gold an interest in certain options on properties in Zimbabwe. The issue closed up 18 cents at a new high of $1.44.

Nevsun Resources reports it is unaware of any reason for declines in its share price over the past few weeks. The issue finished the week unchanged at $1.40, off from the $2.10 level at the end of November. As a result of the drop in price, the company has repriced a previously announced private placement to include 585,000 units at $1.50 per unit, down from 506,250 units at $2 per unit. Proceeds from the placement will be used to fund further work on the company’s mineral properties in Ghana and Mali in West Africa. The early closing of an initial tranche of a previously announced private placement will allow Arequipa Resources to begin exploration and development work on its holdings in Peru. The company sold 1.3 million special warrants at 75 cents and expects to complete the sale of the remaining 4 million special warrants, as scheduled, in mid-January. The issue finished up 13 cents at 83 cents.

HRC Development managed a 13 cents gain to $1.90. The company, together with Toronto-listed Eldorado, is testing six large gold targets on its Andes joint venture in Argentina.

Analysis of drill core from the SDS diamond property near Carrot River, Sask., revealed that no kimberlite was intersected. Calco Resources, which is earning a 15% interest in the property, lost a penny to close at 16 cents while Swannell Minerals, which holds a 42.5% interest, lost 6 cents at 34 cents. Toronto-listed Golden News Resources holds the remaining 42.5% interest. No further drilling is planned on the target although the property does contain several other targets which remain to be drilled. Alberta-listed Flag Resources is continuing its exploration quest on the Wanapitei Anomaly, northeast of Sudbury, Ont. The company plans to drill its recently acquired McNish Twp. option where exposures of base and precious metals are reported to be spread over a large area. The issue closed unchanged at 45 cents.

AGC Americas Gold touched a new high of 99 cents for a gain of 11 cents. The company hopes to spend $3 million on its JD claims in British Columbia during 1995. Efforts will be focused on proving up tonnage on the Finn gold zone. A second phase of drilling on the 10-Mile mine project in Nevada helped Golden Glacier Resources add 7 cents to close at 35 cents. The company is planning a third phase of infill drilling, starting in March, 1995, to confirm an estimated 2.7-million-ton resource grading 0.029 oz. gold. Formation Capital did well, adding 60 cents to close at $3.85. The company holds interests in several active exploration prospects, predominantly in Idaho.

Plans to raise $2.25 million through a private placement at 50 cents per special warrant did not help Arizona Star Resources, which lost 3 cents to close at 56 cents. Toronto-listed Bema Gold, already a major shareholder of the company, will buy the entire placement and plans to sell a portion of its existing holdings to finance the purchase. Proceeds will be used to fund further work on the Aldebaran and Yeguas Heladas projects in Chile.