Vancouver Stock Exchange Vera Cruz is big mover

A brightening in market sentiment ahead of the coming exploration season and an increase in corporate activity helped push the VSE composite index up 9.81 points to 577.04 while the resource index remained unchanged at the 534 level.

Excellent drilling results from property in New Mexico boosted Vera Cruz Minerals to $2.81 from $1.35 during the week ended May 7.

The drilling intersected a wide zone of massive to semi-massive sulphides in two holes. Hole 14 intercepted 210 ft. grading 0.12 oz. gold and 0.19 oz. silver per ton plus 0.34% copper, while hole 15 cut 190 ft. grading 0.28 oz. gold and 0.18 oz. silver plus 0.15% copper. Both holes bottomed in mineralization leaving it open both horizontally and vertically.

Galico Resources was quick off the mark in arranging an earn-in deal on the property only days after the Vera Cruz announcement. Galico may earn a 50% interest by spending $3 million on the property as well as issuing Vera Cruz a total of 300,000 shares during the next three years. Galico traded at the $3.15 level after the announcement, up 35 cents on the week.

Corporate developments at Taseko Mines helped push the stock to $4.30 at the end of the reporting period for a gain of 95 cents. The company announced it has settled the dispute over the Fish Lake deposit with Cominco.

Taseko was seeking to regain a 100% interest in the copper-gold property after alleging Cominco had not met its joint venture obligations. The settlement gives Taseko full control of the deposit until May 31, 1994, during which time the company hopes to sell the property. In the event of a sale, the companies will split the proceeds. If a takeover offer is made for Taseko, the funds would be split between Cominco and Taseko shareholders based on a complicated formula.

The Fish Lake deposit, near Williams Lake, B.C., is estimated to contain reserves of 360 million tons grading 0.23% copper and 0.013 oz. gold at a cutoff of 0.4% copper-equivalent.

Pacific Sentinel came alive, adding 45 cents to finish at $2.05. Street rumors would indicate the company is about to vend in a new property.

Chase Resources also had an encouraging week, adding 75 cents to close at $4.05. The company has an option to earn a 50% interest in a large copper-gold project in the Philippines and recently announced a private placement of 350,000 shares at $2.55.