Wednesday close, September 3
Overall it’s been a good week for Canadian gold producers. Markets haven’t done too badly either, with gold’s ascent to more than $400(US) pushing many stocks higher. Analysts are attributing part of that rise to a declining U.S. dollar — a circumstance which has failed to move gold much in the past (perhaps we have entered a “catch-up” phase). Japanese buying, some from the Middle East, and a shaky U.S. economy, are all thought to be extenuating circumstances. Incidentally, today’s price adds up to around $560(C) which should be a boon to existing and would-be producers. No doubt a lot of established gold mining companies are scrambling to sell some of their production forward.
Carnes Creek was active this morning on a volume of 920,500 shares (an underwriting) and traded at 22 cents . The company expected to raise about $165,000 in the public offering, part of which will be used to explore its Willey gold placer property in California. Texpez Oil and Gas, a Pezim Group company, was also busy, rising 8 cents to 60 cents . The company has been exploring a property in Quebec’s Casa Berardi area.
New Beginning was a heavy trader today, jumping 2 cents to $1.28. Drilling is underway at the company’s Sumich mine and recent results included 29.6 ft grading 0.36 oz gold and 16.5 ft of 0.62 oz with additional silver values.
There were a number of very active issues over our report period including Radcliffe Resources which closed $1.04 higher at $1.30 on a volume of about 1.2 million shares. GLE Resources traded heavily too and closed at $1.28 — a gain of 57 cents . The company recently changed control and was reorganized. Lady Robyn. a new listing, came out of the blue and jumped $2.65 to $3.75.
Also, over the period, International Corona posted a $1.37 increase to $22.50. Negotiations are under way between Corona and Mahogany Minerals which could see Corona and Royex Gold Mining act as operators on Mahogany’s Jolu gold property in Saskatchewan. Pezcorona warrants came on strong, jumping $1.50 to $16.63. Western Allenbee Oil and Gas, which recently concluded an agreement on a European extraction process for gold from tailings, shot up $1.02 to $5.12. Meanwhile Golden Chance managed a 95 cents gain to $2.40. It recently raised $200,000 in a private placement for “general corporate purposes.” Black Swan Gold, which expects to complete a feasibility study for its Gabanintha gold project (Australia) this September, tacked on 91 cents to $3.35.
The Vancouver stock exchange reports a short position of 3.4 million shares and warrants as of Aug 22, 1986.