STOCK MARKETS — Gold bugs aglow as indexes post gains

Gold bullion continues its ascent as we begin a new year, finishing the period ended Jan. 4 at the US$394.10-per-oz. level for a gain of about US$8.35 per oz.

Strength in the yellow metal helped the Vancouver Stock Exchange resource index post a 6.62-point gain to 1,634.50 while the composite index added more than 25 points to close at 1,072.62.

All North Resources did well, trading 928,000 shares over the holiday-shortened trading period to close up 20 cents at 70 cents. The company, which is active in both Mexico and Venezuela, is completing a 5,000-ton bulk sample at its Golden Horseshoe gold project in Mexico and may be the beneficiary of investor rotation into junior gold explorers. Investors took a closer look at Cusac Industries as well, pushing the issue up 47 cents to $1.47. Cusac is developing and putting into production its Table Mountain underground gold project near Cassiar, B.C.

Using an existing 300-ton-per-day mill at the site, the company expects to produce about 23,000 oz. gold in 1994 at an estimated cash cost of US$160 per oz.

A positive geological report from its Kokong gold project in Botswana helped Chase Resource, with a 90 cents boost to $5.75.

Zappa Resources, which has a large land position in Ecuador, added 23 cents to close at $1.70. The company expects to begin exploration on the gold prospects early this year.

The release of high-grade channel sampling results from the Santa Rosa project in Peru helped Southwestern Gold. The company completed a joint-venture agreement with Cambior to buy the property from a Peruvian company for staged cash payments of US$11.5 million over a maximum of eight years.

The results include a 344-ft. interval grading 0.21 oz. gold per ton and a 295-ft. interval grading 0.37 oz. gold.

Southwestern, which has a 30% interest in the joint venture, added $1.25 to close at $7.75.

St. Philips Resources added 25 cents to close at $2.05 in a game of catch-up against recent gains by partner El Condor Resources.

St. Philips, which has a 40% interest in the South Kemess copper-gold deposit in British Columbia, now has a fully diluted market capitalization of about $23 million while El Condor, which has a 60% interest in the property, has a market cap of about $80 million based on its recent close at the $5.50 level. That puts a value on the property of somewhere between $60 million and $130 million, depending on which company you own.

The acquisition of two gold properties in Bolivia, as well as an option on eight additional properties in the South American country, helped Alberta-listed Takla Star Resources.

The issue finished up a dime at $1.25.

Northern Crown Resources released results from the first hole of a 13-hole reverse circulation drilling program at its Guadalupe gold project north of Mazatlan, Mexico.

The drilling, designed to test the Zapote zone further, intersected 85 ft. grading 0.10 oz. gold, about 150 ft. downdip from a 90-ft. intersection grading 0.11 oz. gold drilled last year.

Northern Crown closed up 15 cents at $1.30.

American Bullion Minerals jumped 35 cents to $1.35. The company recently announced plans to acquire a major new exploration project.

Formation Capital gained back some lost ground, trading up 40 cents at $2.95. The company is now compiling 1993 exploration data from its Black Pine copper-gold-cobalt project in Idaho.

Thinly traded La Teko Resources shot up $1.05 on low volume. The company is developing a bulk tonnage gold deposit at its Ryan Lode property near Fairbanks, Alaska.

Antilles Resources also did well, adding 22 cents to close at $1.75. The company recently acquired options on several gold properties in Venezuela.