Vancouver Stock Exchange (December 30, 1991)

Despite a generally “grinchy” outlook as the year draws to a close, both the resource and composite indices managed to post small rebounds during our report period ended Dec. 23. The resource index added more than nine points to close at 453.32 while the composite index followed suit, edging up 1.56 points to finish at 526.27.

Gold also managed to gain some ground, adding a couple dollars to finish at the US$359-per-oz. level.

The VSE refused to accept an engineering report on the Gibbs property in Mariposa Cty., Calif., until a third party has reviewed the results of the drilling program on which the report is based. In order to earn a 50% interest in the property, Dessir Resources paid the vender a total of US$1.4 million but must issue 2.8 million free-trading shares to become fully vested. Prior to Dessir receiving approval to issue the stock, the vendor must demonstrate to the VSE that 50% of the property is worth a minimum of US$4.5 million.

The report estimates reserves on the property at 826,000 tons grading 0.86 oz. gold per ton based on a recent 15-hole drilling program. The review, which should be completed by the end of January, offers the company an opportunity to clear up analysts’ skepticism of the project. In the meantime, Dessir’s share price managed to rebound to $1.20 after a prolonged slide to the $1.10 level.

Crown Resources lost more ground following the release of a new reserve estimate for the Crown Jewel property in northeastern Washington. Reserves increased to 8.7 million tons grading 0.19 oz. gold per ton. Crown finished down 63 cents at $8.50.

War Eagle Mining managed a strong rebound to $1.20 after disappointing drilling results from the company’s Mexican gold-silver property pummelled the company’s share price to the 80 cents level from better than $3. Shareholders of International Baron Resources approved a proposed reverse takeover by Azco Mining. International Baron will roll back its capital on a 6-to-1 basis and change its name to Azco Mining. The company recently completed a private placement of two million units at US30 cents per unit and plans to begin developing a large solvent extraction copper project in Arizona. The issue finished the week unchanged at the 37 cents level. Galico Resources finished up 7 cents at 87 cents. The company recently announced that it is in negotiations to acquire certain mineral claims in central Jamaica. The claims are reported to contain at least six copper showings.

Jordex Resources managed to hit a 52-week low, closing down 25 cents at $1. With the takeover of Moraga Resources earlier this year, Jordex can earn a 45% interest in the Expo copper property on northern Vancouver Island from BHP-Utah Mines.