Vancouver Stock Exchange (September 02, 1991)

Both the resource and composite indices continued to rebound during the week ended Aug. 27 following the tumultuous events in the Soviet Union. The composite index added 8.27 points to finish at 563.71 and the resource index jumped an impressive 21.3 points to close at 557.58.

Gold’s performance continues to be a disappointment as the yellow metal slid below US$355 per oz. and now appears on the way to testing the US$350 level.

Rumors of a good hole on the Fish Lake project owned by Taseko Mines and Cominco pushed Taseko’s stock up $1 to the $5.50 level before the issue was halted. The company subsequently announced the first hole of its 1991 program intersected more than a half-mile of ore-grade material. The hole averaged 0.37% copper and 0.022 oz. gold per ton over the interval for a copper-equivalent grade of 1.05%. Following the halt, the issue traded more than 170,000 shares to finish at the $5.50 level.

Fairbanks Gold substantiated rumors that it was in negotiations with Amax Gold for the sale of its 51% interest in the Fort Knox gold deposit near Fairbanks, Alaska. The company would not, however, comment on the price of a potential offer which is rumored to be in the $9 range. Fairbanks finished unchanged at the $7.50 level.

The prolonged dive in the price of War Eagle Mining managed to reverse itself. The issue hit a low of 95 cents before rebounding to $1.19 for a loss of six cents. War Eagle reports it expects assay results from the first phase of drilling on its War Eagle Mountain property in Idaho by the first week in September.

Additional drilling results from the SIB claims in northwestern British Columbia appear to have helped 50% owner American Fibre. The results included a 37-ft. intersection grading 0.32 oz. gold per ton and a 23-ft. intersection grading 0.12 oz. gold, in addition to a number of low-grade intersections. American Fibre finished up 12 cents at 50 cents while the company’s 50% partner, Silver Butte Resources, remained unchanged at the 36-cent level. Galico Resources continued to slip, dropping 12 cents to 65 cents. No results have been released from drilling on the company’s Metla Creek property in northwestern British Columbia.

Eurus Resource and Columbia Gold Mines recently completed drilling at the Spectrum project in northwestern British Columbia and assay results from holes 77 through 86 are expected shortly. Both issues continued to search for bottoms, with Eurus hitting a 52-week low of 70 cents before closing down 16 cents at 75 cents and Columbia dropping 19 cents to finish at 40 cents.