Alberta Stock Exchange Lacklustre trading

Last week’s collapse in bullion prices might have created a “second chance” buying opportunity for investors to pick up gold shares at a discount. But, judging by the lacklustre trading pattern during the week ended April 3, there hasn’t been a stampede back to the stock markets yet. BRE-X Minerals drifted 2 cents lower to 55 cents on thin volume of 16,500 shares. At presstime, BRE-X announced it’s buying a majority interest in an Arizona gold property with reserves of 1.3 million tons grading 0.22 oz. gold per ton. Another junior gold issue with property in the western U.S. is Naneco Resources which gained 2 cents to close at 35 cents on volume of 58,900. Encouraging drill results have been released from Naneco’s Longstreet gold property in Nevada. BMR Gold was 7 cents easier to close at $1.42. The company recently raised $922,000 in a private placement to fund work on its America mine project in California.

A bright spot for exploration continues to be the Eskay Creek gold discovery area of northwestern British Columbia where Consolidated Gold Hawk recently picked up a 50% interest in some claims. That acquisition helped Cons Gold Hawk gain 5 cents to close at 70 cents on volume of 261,100 shares. Integrated Resources is another company active in northwestern British Columbia with a property near Telegraph Creek. Integrated saw volume of 254,000 shares at the 30 cents level.

Kingswood Explorations slipped back 11 cents to 45 cents after announcing mixed results from a winter drill program on its property in the Casa Berardi gold belt of northwestern Quebec.

Flag Resources has settled all litigation with its joint venture partner Hecla Mining and received clear title to 183 copper-gold claims in MacKelcan Twp., near Sudbury, Ont. Flag traded 22,600 shares to close down 4 cents at 25 cents.

A 15-day cease-trade order has been issued against Naxos Resources for failure to file reports of material change and various insider reports. Cease-trade orders were also issued recently against Coxheath Gold, Octan Resources and Great Victoria Gold.

On an optimistic note, gold analyst Peter Cavelti says as long as there are pockets of prosperity around the world, jewelry demand — which currently absorbs more than 60% of the free world’s gold — will likely remain high.