Vancouver Stock Exchange Resource index in small decline

In a week of backtracking on major markets, the VSE composite index remained virtually unchanged at the 560 level while the resource index shed 7.21 points to finish the period ended March 19 at 5689. TGold held above the US$360 level over the same period, finishing at US$36460 per oz.

Although an anticipated $5-million financing of Prime Equities by a major mining company (widely believed to be RTZ) has not yet been completed, Prime added 15 cents over the week, finishing at $116.

St Phillips Resources and El Condor Resources appear to be at odds over St Phillips’ dealings with private company Stork Ventures. El Condor and Kennecott, in a 60-40 joint venture, are earning a 60% interest in the South Kemess porphyry copper-gold property in northern British Columbia from St Phillips and Stork.

St Phillips, 75% owner of the property, is in the process of acquiring all of the issued shares of Stork which owns the remaining 25%. El Condor claims to have the right of first refusal on the minority interest while St Phillips claims there is no change in ownership of the actual property, and therefore El Condor has no claim to the interest.

El Condor closed off 16 cents on the week at $184, while St. Phillips closed at $1, down 2 cents.

With the spring drilling season approaching, investors appear to be anticipating the start of a $35-million program by partners American Fibre and Silver Butte Resources on the companies’ SIB claims, south of the Eskay Creek property in northwestern British Columbia.

Silver Butte gained a dime at $128 while American Fibre added 12 cents to close at $129. During 1990, a single drill hole cut a 469-ft intersection grading 042 oz gold and 309 oz silver per ton in an untested area of the property.

Bellex Mining did well during the week, jumping 38 cents to finish at $168 Noranda is expected to release assays shortly from drilling on the Monument Bay gold project in Manitoba. Bellex is earning a 50% interest in the property and recently announced a $500,000 loan agreement with Midland Walwyn Capital.

Jacqueline Gold came alive during the period, jumping from the 30 cents level to past 70 cents before settling at 66 cents. The company recently announced a $250,000 financing and the start of a drilling program on the Comstock property in Nevada by BMR Gold. Jacqueline has a gross royalty interest in the property varying from 05% to 5%.

Galico Resources gained 21 cents during the week, closing at $216.

The company recently announced it had been granted the right to earn a 60% interest in Cominco’s Metla property north of the Galore Creek area in northwestern British Columbia. The company can earn the interest by spending a total of $11 million on exploration by mid-1994.

Galico anticipates spending at least $11 million on the property in the coming season to drill-test a number of prospective gold and base metal targets. .NA7