Vancouver Stock Exchange Subdued reaction to high gold prices

Wednesday close, Sept. 17

The market reaction here to higher gold prices has certainly been subdued — at least by previous standards. There is still concern that gold prices won’t hold, so investors are being very selective in their choice of speculative issues. Even so, the market psychology is changing and another price increase could precipitate a late-year rally which would certainly be welcome.

Trading activity at press time was mixed with Greenwell Resource Corp. posting an 8 cents increase to 48 cents on a volume of 958,600 shares. Ravenroc Resources climbed 5 cents to $1.95 in good volume and Genoveva Resources was also a nickel higher at 42 cents . Ravenroc is a Pezim-Group company which is diversifying into the broadcast field. Genoveva has a gold property about 75 miles northeast of Vancouver where Esso Minerals will be drilling one claim group in the near future and Golden Phoenix, another. At press time the market index was ahead 2.5 points to 1418.7.

Over our report period, Texpez Oil and Gas was very active, rising 18 cents to 77 cents on a volume of 852,700 shares. Banco Resources was also busy, gaining 62 cents to $9.63 on a volume of 657,100. Texpez has property in the Casa Berardi area and visible gold has been reported from overburden drill samples. Banco is completing a pipeline into its Tennessee gas field.

Posting one of the largest increases over our report period was Marco Resources. It was ahead $1.85 to $3.35. Marco claims to have received a letter of intent from “an American conglomerate” to develop its precious metals property near Needles, Calif. Production would be 5,000 tons per day with Marco receiving 12.5% of net proceeds.

Link Resources climbed 50 cents to $3.75 and Goldstack was up a similar amount to $1.50. In April Link announced plans to acquire Noranda’s interest in the Blackbird project in Idaho for $4 million(US). Goldstack has discovered a new gold zone on its Val d’Or area property. One hole returned 41 ft of 0.24 oz gold. Better Resources, which has been reporting encouraging results from its Mt. Washington gold project on Vancouver Island, was 44 cents higher at $1.35.