STOCK MARKETS — 1993 a banner year for Vancouver Exchange

The Vancouver Stock Exchange had such a good year in 1993 that it surpassed trading records set in the boom-and-bust year of 1987.

Volume for the year was more than 5.7 billion shares, compared with the 4.8 billion share record set in 1987, while value traded was about equal at $6.7 billion.

More significantly, the composite index posted a gain of about 68% during the year and now trades near its year-high of 1,057.35.

The resource index had an even better year, jumping a spectacular 144% to the 1,630-level, just off a high for 1993 of 1,672.79.

In 1992, diamond exploration played a dominant market role with the discovery of diamond-bearing kimberlites by partners Dia Met Minerals and BHP Minerals Canada.

While Dia Met remained in a relatively narrow trading range during 1993, follow-through speculation in other diamond exploration companies reached fever pitch during the year.

The DHK syndicate led by partners Kettle River Resources, Dentonia Resources and Alberta-listed Horseshoe Gold Mining was vaulted into the limelight with the discovery of diamondiferous kimberlite on the WO claim block in the Northwest Territories.

Kennecott is sufficiently impressed with the results that it is proceeding with a 5,000-tonne bulk sample on the DO-27 pipe.

Kettle River traded as high as $19.75 during the year before settling for almost a 4-fold increase at the $11 level.

Dentonia, trading at $1.65 a year ago, finished at the $6 level off from a high of $10.75 in the summer.

Horseshoe Gold followed a similar path, trading as high as $11 before finishing the year up $5 at the $6.50 level.

Other major movers on the diamond exploration front include partners Mill City Gold Mining, Fibre-Klad Industries and Tanqueray Resources. The companies recently reported the discovery of a number of diamond-bearing pipes on their Yamba Lake property in the Northwest Territories. Although the timing of the discovery missed the full-blown summer feeding frenzy experienced by many of the diamond explorers, the issues still did very well. Mill City Gold is up more than 5-fold at its recent level of $2.25, while Fibre-Klad posted a more modest gain of $1.06 at $1.66.

Tanqueray traded as high as $4.10 during the year before finishing at $2.85 for a gain of over $2.

Limited diamond exploration success in the shadow of extremely high expectations did manage to hurt several companies, including Kalahari Resources, now at 61 compared with a high of $4, and Consolidated Pine Channel Gold, currently at $1.50, off from a high of $8.25.

Although diamond explorers generally had an excellent year, junior golds also experienced a major resurgence with the resurrection of the price of gold. The yellow metals move from the US$330-per-oz. level to more than US$400 per oz. (followed by a drop to US$340 and recent jump back up to US$385) gave investors a run for their money.

Prime Resources Group, which is developing the rich Eskay Creek gold-silver deposit in British Columbia, more than quadrupled to the $9 level from a low of $1.85.

Miramar Mining, helped by the acquisition of the Con underground gold mine near Yellowknife, N.W.T., posted an impressive $5 gain to finish the year at more than $6.

The successful development of a heap-leach gold project in Mexico allowed Eldorado to more than triple its price to the recent $3.75 level. Companies active in Venezuela compounded gains made in 1992 including: Venezuelan Goldfields which more than doubled from $5 to the current $12; Tombstone Explorations up 8-fold at $4; Canarc Resource up 4-fold at $4.25.