STOCK MARKETS (June 22, 1992)

Markets were mixed during the period ended June 16, but a bright spot was gold managing to edge above US$340 per oz. to finish at the US$342 level.

The Vancouver Stock Exchange resource index closed up 3.26 points at 557.92, while the composite index slipped 7.38 points to close at 620.55. The composite index on the Alberta Stock Exchange slipped 4.62 points to 832.84. Trading remained relatively quiet on the diamond scene with no further news on quality tests on the bulk sample from the Point Lake property in the Northwest Territories. Dia Met Minerals and a minority joint venture partner have allowed BHP-Utah the right to earn a 51% interest in the property, and if mines are found and developed, Dia Met will hold a 29% interest. Dia Met finished the week up 25 cents at $15.87.

New players to the diamond exploration area included KRL Resources, which acquired a 49% interest in 16,000 acres northwest of the Point Lake property. KRL acquired the interest from a private company wholly owned by Seamus Young, president of KRL, in return for $30,000, plus 150,000 shares and a 1% royalty interest. KRL jumped 12 cents to close at 32 cents.

Consolidated Newgate signed an option to earn a 50% interest in a 46,000-acre block of ground about 25 miles southwest of the Point Lake property. To earn the interest, Newgate must pay Winspear Resources $600,000, plus 200,000 shares and complete $1.5 million in exploration during the next five years. Newgate gained 14 cents to close at 70 cents.

Athabaska Gold Resources signed a letter of intent with Royal Oak Mines to acquire 100% of the diamond rights for that company’s Salmita property in the Northwest Territories. Athabaska finished unchanged at the 17 cents level. Texas Star Resources was nailed by sell orders; it plunged 47 cents to $1.40 before being halted by the VSE on June 16. The VSE stated that the drop in price was the result of a June 16 article in a daily Vancouver newspaper. The article noted that Texas Star is only acquiring a quarter interest in a consortium that has the right to explore in the Crater of Diamonds state park and that there is no guarantee that the group will be able to develop a mine if diamonds are found. (Strangely, Texas Star disclosed all of this information in a news release June 3.)

Trading in American Bullion Minerals propelled the issue to $1.05 for a gain of 35 cents. The company is in negotiations to acquire an industrial minerals property in Western Canada. No details have been released except that the property contains a drill-proven fluorite reserve.

Taseko Mines gave up some ground, closing off $1.38 at $14. The company recently released drilling results from its Fish Lake property near Williams Lake, B.C., indicating that reserves will increase.

Drilling on the Macuelizo property in Honduras returned a number of gold and copper intersections for owner Melinga Resources. One hole intersected 62.4 ft. grading 0.14 oz. gold per ton from surface to 62.4 ft., and 29.6 ft. grading 2.36% copper from 134.5 ft. to 164.1 ft. The issue lost a nickel to close at 98 cents.

Kookaburra Gold reached an agreement to purchase CoCa Mines’ 15% net profits interest in the Longshot Ridge property in Nevada. The acquisition will give Kookaburra a 100% interest in the copper-oxide property and the company is now negotiating various financing options with several groups in order to advance the project to the prefeasibility stage. Kookaburra gained 13 cents to finish at 50 cents.

Trading in Kokanee Explorations and Con-solidated Ramrod Gold remained volatile. The two companies plan to merge on a 1-for-1-share basis. Kokanee added 70 cents to close at $2.50 and Ramrod added 80 cents to finish at $2.70.