STOCK MARKETS — Gold stocks sustain buoyancy of Western

The Vancouver Stock Exchange is experiencing its strongest market in recent years, with the latest quarter showing the second-highest volume on record, and the highest since 1987. The upsurge in gold prices together with companies chasing Venezuelan gold and/or diamonds in the Northwest Territories helped drive the index to its highest level in years. At presstime, 12 noon on June 16, the VSE’s resource index reached 1,311.48, a gain of 37.48 points from a week ago. The composite index was at 987.58, ahead 6.4 points from last week.

A growing number of juniors are taking advantage of the buoyant markets by arranging multi-million-dollar financings, mostly through private placements. As Murray Pezim told British Columbia securities regulators a few years back: “You raise money when you can.”

The largest financing in VSE history, $42 million, was recently completed by Venezuelan Goldfields. The issue slipped 75 cents over our report period to settle at $9.87. The junior is concentrating its efforts in the geologically promising Kilometre 88 district of Venezuela. The trading frenzy accompanying the rush to acquire ground in this district has abated somewhat since disputes over ownership of concessions revealed a lack of clarity about mineral title in the country.

Another junior exploring offshore is Adrian Resources, which lost 13 cents in active trading to settle at $2.06. The company is forging ahead with plans to advance the Petaquilla copper-gold project in Panama, a joint venture with Metall Mining. Adrian recently picked up more ground based on a view that the known deposits are within a large, unexplored mineral district. Adrian also has a “slice” of the Eskay Creek gold deposit being developed by Homestake Mining (See feature story beginning on page 1.).

The most active trader on Western markets over our report period was Chutine Resources, which gained 2 cents to settle at a nickel. The issue has been on a downward slide since 1991, when American Barrick dropped its option to earn into Chutine’s Amelia gold project in Mexico. More recently, Princeton Mining aborted plans to amalgamate one of its subsidiaries with Chutine. This decision was made after Princeton carried out a drill program on the Luz del Cobre copper project in Mexico, held 49% by Chutine. The drilling is reported to have confirmed grade but not tonnage.

Gold Canyon Resources picked up 25 cents, to reach 90 cents, after it announced the start of a 10,000-ft. drill program at the Blue Dog and Chandler gold properties near Weiser, Idaho.

The recent weakness in copper prices and the grim outlook for all base metals are beginning to affect junior companies advancing copper deposits that will require conventional milling and large capital costs. El Condor Resources, active on a copper-gold deposit in British Columbia, lost 25 cents at $4.25. Two juniors sharing common management, Taseko Mines and Pacific Sentinel Gold, also lost ground. Taseko was off 75 cents at $13.25, while Sentinel lost 20 cents at $4.45. Both juniors are working on bulk-tonnage copper-gold deposits in Western Canada.

Focal Resources, which came to prominence after reporting high values for gold and platinum group elements from its Alberta project, eased off 15 cents at $1.25. The Alberta Exchange recently requested the company have its unconventional assays confirmed by a certified Canadian lab using fire assaying. Gold results were far lower than originally reported, and the junior still has not released check assays for the platinum group elements. Focal says it will not do this after all, because it has decided to concentrate “only on the gold.”

The DHK juniors were active. Dentonia Resources, was ahead 50 cents at $8.37. Commonwealth Gold, also active in the region, was up 6 cents at $1.46.