Vancouver Stock Exchange Prime, Stiking make impressive gains

The Vancouver Stock Market seems to have lapsed further into a state of lethargy with the composite index slumped at the 750 level. There appears to be far more excitement taking place away from the computer screens and trading desks as the media jockeys for position in what is obviously going to become a full-blown circus. If the hearing into insider trading activity drags out long enough, and the T.V. stations get their way (wanting to televise the event), perhaps they could make a real-life drama series out of it. In any event, there is no doubt that Murray Pezim will become even more accustomed to camera lights as the hearing unfolds this summer.

What ever the outcome, Pezim’s flagship property at Eskay Creek north of Stewart, B.C., continues to churn out impressive drilling results.

On April 18, today, both Prime Resources Group and Stikine Resources where halted on reports of a high-grade stepout drill hole.

The most recent results, released April 16, had typical grades in the ounces for gold and the tens of ounces for silver, igniting a rally in both Prime and Stikine. Prime jumped $1 per share before settling at $6, for a rise of $0.50 for the week ended April 17. Stikine rose $2 over the reporting period to $57 per share showing no sign of settling back before the halt. With the Prime-Calpine merger complete, the market will have a difficult time using its previous 7-to-1 price ratio for the price of Stikine relative to Calpine. Many feel this was holding back the share price of Stikine.

The new Prime warrants, the result of the merger with Calpine Resources, put in an impressive performance in their first week of trading, almost doubling from a low of $1.25, reaching a high of $2.25 before finishing at $2.08 before the halt. The warrants give the holder the right to buy one share of Prime at $5.25 for one year, putting their current premium at about 22%.

Adrian Resources was another bright spot over the week almost tripling in price from last week’s 86 cents. The issue reached a high of $2.60 per share before pulling back to the $2.40 level. The action was spurred by the findings of the Chief Gold Commissioner who dismissed the mysterious Ken McKenzie’s claim to the IKS 1 claim, but awarded him ownership of the IKS 3 claim.

The IKS 1 claim covers a narrow and likely valuable gap in the 21 zone on Prime and Stikine’s Eskay Creek property. Adrian has hired consulting engineers Roscoe Postle and Associates to calculate a reserve figure for the gap.

Sutton Resources appears to be coming to life from a hibernation at the $1.50 level. The stock added $0.50 per share on light volume to close at $1.99 on April 17. The company recently announced two private placements; 450,000 units at $1.32 each and 151,500 flow- through shares at $1.65 each.

Akiko-Lori Gold has yet to find a bottom on its share price, retracting a further 90 cents during the period to $3.70 per share. Partner Noranda has been making less than glowing remarks about the previously much touted Springpole property in northwestern Ontario.