STOCK MARKETS — Trading volumes help VSE indexes gain

Despite a drop in bullion prices, the Vancouver Stock Exchange resource index climbed more than 31 points to close at 1,483.00 during the period ended Nov. 2. The composite index also gained ground, finishing up over 19 points at 1,029.82.

The market strength is reflected by year-to-date trading volumes which, as of Oct. 29, surpassed the 4.795 billion shares traded in all of 1987. Gold followed silver prices down after Xerox announced it plans to manufacture graphic arts film without using silver. Bullion traded down to the US$360-per-oz. level before rebounding to US$365 for a loss of US$5 on the week.

Although details of the kimberlite discovery at Tobin Lake, Sask., remain elusive, Consolidated Pine Channel Gold managed to add another 92, to close at $3.20.

Golden Peaks Resources, the company’s joint-venture partner on the project, did not fare as well, gaining only a dime to close at $1.55. A drill hole at Tobin Lake intersected pyroclastic kimberlitic material 9 metres below surface and is reported to contain diamond indicator minerals. Pine Channel also reported that a hole drilled on its ground on the western end of the Molanosa Arch contained purple pyrope garnets in pyroclastic kimberlitic material.

The widths of the two intersections have not been disclosed and there appear to be some skeptics out there — the short position in Consolidated Pine Channel, as of Oct. 29, stood at 388,300 shares.

Pine Channel and Mountain Province Mining have received drilling permits for their joint-venture ground in Saskatchewan and expect to begin drilling geophysical anomalies before the end of November.

Mountain Province gained 20 cents to close at 79.

Diamond exploration appears to agree with Tenajon Resources, which posted a new high of $1.15 before closing up 36 cents at $1.04. The junior has an interest in a diamond project in the Northwest Territories.

Southwestern Gold continued to gain ground, touching a new high of $7.38 before closing up $1.50 at $7.

The company has signed an agreement with Cambior regarding the Cristo Rey property in Peru.

Cambior can acquire 60% of the polymetallic project by paying US$5 million cash over four years and funding it to feasibility.

Plans to concentrate its activities in Quebec, with an emphasis on the acquisition or discovery of gold fields in the Abitibi region, helped Prime Equities International post a 50 cents gain at $3.90.

The company plans to raise about $6 million through a shareholder rights offering but will not be proceeding with a merger with Venture Pacific Development.

Booker Gold added 21 cents to close at $1.10 after releasing assay results for the first hole on a new magnetic anomaly at their Hearne Hill property near Smithers, B.C.

The hole intersected 230 ft. grading 2.08% copper plus 0.014 oz. gold per ton and President Hugh Grenfal said drilling should begin shortly on a second magnetic anomaly, which is believed to be another breccia pipe. Seawest Resources, which is negotiating to acquire an interest in mining properties in the former Soviet republic of Kyrgyzstan, added 12 cents to close at 33.

Plans to acquire a minority participating interest in a “significant” gold producer in West Africa helped Mutual Resources post a 24 cents gain to 64. The company is waiting for government approval of the acquisition before releasing details. Three other gold projects are being reviewed, as well. Tombstone Exploration added 35 cents at $2.90 after announcing plans to raise up to $15.5 million shares through a special warrant issue at $2.17 per warrant. The warrants are convertible into one share and one share purchase warrant exercisable at $2.17 in the first year and $2.50 in the second year.