Vancouver Stock Exchange Few bearish on gold sector

Trading activity on the Vancouver Stock Exchange showed definite signs of life at noon today, Nov 22, with the index up 4.28 points to 713.12. This represents an increase of 7.03 points from a week ago.

Calpine Resources, which owns 50% of the Eskay Creek gold project north of Stewart, B.C., jumped a further 37 cents to $5.62 today after gaining ground steadily over the past week. Prime Resources, Calpine’s largest shareholder, moved up a further 16 cents to $2.20. Shareholders of both companies will be meeting in mid-December to consider a merger. A dissident group intends to oppose the share swap transaction.

If there were best-seller lists for insider trading reports, the August and September issues would likely top the list. These reports — which received widespread media attention — show that Murray Pezim, partner Arthur Clemiss and several other insiders were busy selling at the height of the Eskay Creek buying frenzy last summer. Pezim subsequently poured back a good portion of his profits, although indications to date are that Clemiss did not. Prime company Adrian Resources managed to gain 3 cents to $1.25 today, despite the uncertainty affecting the status of its property adjacent to the Eskay Creek project.

Goldbelt Mines was also active today, up 1 cents to 61 cents . Corona Corp. recently made a substantial investment in this junior which is headed by former Granges directors Mike Muzylowski and Douglas McRae. Muzylowski recently became a director of Dragoon Resources.

Akiko-Lori Gold Resources was among the more active Prime group companies this week, up 28 cents to $1.36. Interest is probably focused on the company’s joint venture gold prospect operated by Noranda Exploration east of Red Lake, Ont. Five gold-bearing zones are reported to have been identified on the Springpole property and the best intersection from one of the zones is 47 ft of 0.47 oz gold per ton.

Stikine Resources, which owns 50% of Eskay Creek, is still on the block although rumors of potential buyers have all but dried up. Stikine’s share price gained $2.38 to reach $43.50.

Athena Resources got a boost of 23 cents to $2.38 after announcing that Placer Dome U.S. had signed a letter of intent agreement involving its Talapoosa gold project in Nevada.

Trading activity in Big Strike Resources has to do with the start of an exploration program on a property in Pascalis Twp., Que., where the company is earning a 50% interest from Victoria Diego Resource. Big Strike said the property is underlain by the same volcanic rock groups that underlie the Aur-Louvem discovery.

Armeno Resources announced it had entered into a joint venture agreement with the government of Sudan involving exploration and development of a copper project with existing reserves. Armeno gained 12 cents to 60 cents .

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