Vancouver Stock Exchange Index gains ground in quiet trading

As each year comes to a close, economists and analysts bring out the crystal ball and make projections on what is in store for the future. Although the threat of recession and unrelenting high interest rates still top the collective worry list, it appears there are optimists predicting “slow growth but no recession” as into the last decade of this century approaches.

Only time will tell, but in the meantime investors and brokers remain encouraged with gold’s steady price base over the $400(US) threshold. But, most Canadian exchanges experienced generally lacklustre trading over t he holiday season.

As expected, trading volumes on the Vancouver Stock Exchange remained at modest levels. At noon today, Dec 27, the VSE index was off 3.42 points to 700.3 although this represents a small gain of 4.41 points from a week ago.

Armeno Resources lost ground today, off 3 cents at 41 cents . The company made gains in recent weeks after announcing developments on several mineral projects in the international arena. The most recent involves a “letter of understanding” with Nissho Iwai of Japan for possible financing and development of the San Bartolome silver-lead- zinc-gold deposit in Ecuador.

Suntac Minerals was the volume leader over our report period, ahead 4 cents to 35 cents . The company has been drilling to expand reserves at the Polaris-Taku mine project in northwestern British Columbia and a work program is planned for 1990. The former gold producer is near the Tulsequah Chief massive sulphide project being explored by Cominco Ltd. and Redfern Resources.

Maghemite Inc., a company in the Hughes-Lang group, held at 5 cents despite some recent trading. The company’s key asset is a plant in Quebec producing ferrite products.

A surge of interest in Dayton Developments’ gold project in Chile boosted that company’s share price 29 cents to $1.47. However, the issue was recently halted pending rectification of a discrepancy involving the clearing of a small number of rights.

Seven Mile High group continued to be an active issue this week even though a marked difference of opinion exists on the status of the joint venture Vault gold project near Vernon, B.C.

While Seven Mile says a production decision is “imminent,” operator and 60% owner Inco insists the project will require more work before it even reaches the feasibility stage. Seven Mile advanced a dime to $2.75.

Prime Resources gained 18 cents to $2.03. Talk on the street is that barring unforeseen events, Prime’s proposed merger with Calpine Resources is likely to win approvals at shareholders’ meetings early in 1990. The meetings are awaiting the completion and distribution of a second fairness opinion as requested by the Superintendent of Brokers.

Another Pezim-controlled company, Springer Resources, recouped 7 cents to 34 cents . The issue lost ground several weeks ago after announcing disappointing results from one of its exploration projects near Eskay Creek in northwestern British Columbia. But the company has yet to explore the bulk of a large joint venture land package in the area.