Vancouver Stock Exchange Low volume, higher interst rates

The VSE market churned its way on very low volume through yet another quiet week. The most noteworthy event was the VSE Index dropping below the psychological 1000 mark, but this wasn’t enough to get bargain hunters out of their trenches, even with the lure of slightly stronger gold prices. The fear of higher interest rates continues to shy away buyers, while profit- taking (albeit small profits in most cases) flattens out most gainers. A “quick blip” market, one broker comments.

At presstime the Index was off 0.22 points to 985.6 with declining issues well ahead of advancers. Among the more active issues was Black Swan Gold Mines which gained 2 cents to 65 cents . The company is active in Australia where it has a 25% interest in a producing gold mine.

Star One Resources was the busiest issue over our report period, gaining 11 cents to 96 cents . The company is working its property adjacent to the Premier Gold Project near Stewart, B.C. William Travnik, president, said the company has received considerable interest in the project from European investors.

War Eagle Mining just completed an “encouraging” drill program on its War Eagle Mountain property in Idaho and jumped 14 cents to 57 cents . Previous drilling encountered 15 ft of 0.2 oz gold per ton and new assays are expected shortly.

Colossus Resource Equities, which will control about 50% of Delaware Resources, moved ahead $1.00 to $5.00 while Dolphin Explorations gained 11 cents to $1.26 on news it was aiming (with the help of part-owner Corona Corp.) to advance its Cape Ray gold project in Newfoundland to the pre-feasibility stage by year end.

Central Crude, active in the Mishibishu Lake gold camp near Hemlo, Ont., continued its up and down ride, this week gaining 72 cents to $8.50. NDU Resources just signed a deal with Noranda Exploration on its Marg property east of Mayo in the Yukon and moved ahead 45 cents to $3.60. The deal allows Noranda Exploration to acquire up to 51% (by May 1, 1991) of NDU’s then- outstanding shares.

Footwall Explorations, active on a project near Zeballos, B.C. with Falconbridge Ltd., gained 29 cents to $1.14. A cross-drifting program intersected 6 ft of mineralized structure with the drift still in mineralization. A spokesman from the company said previous drilling in this area returned values of 6.5 ft of 9.03 oz gold per ton.

Another busy issue was Quartz Creek Gold Mines, which gained 21 cents to 96 cents . Atlanta Gold Corp. can earn a 50% interest in the company’s newly acquired Why claims west of Kelowna, B.C.