STOCK MARKETS — Pacific Sentinel, Big Creek jump on merger

Western markets gained some ground during the period ended Aug. 25. The Vancouver Stock Exchange composite index added 7.2 points to finish at the 577 level, and the resource index posted a 10.9-point gain to close at 549.6.

The Alberta Stock Exchange composite index finished up 7.5 points at 840.3. Gold managed to reverse its recent slide thanks to a plunge in the value of the U.S. dollar against the Deutsche mark. The U.S dollar hit a new post-war low of 1.4007 marks, down about 3.8% from the previous week’s close of 1.4566 marks. Bullion posted a relatively modest gain in light of the currency fluctuations, edging up to finish at the US$341-per-oz.level. On the VSE, patient shareholders of Pacific Sentinel Gold were rewarded following release of the company’s plans to merge on a 1-for-4 basis with Big Creek Resources. Pacific Sentinel has been searching for a new project for more than a year, during which time the issue remained essentially dormant at the $2 level. Pacific Sentinel posted a 60 cents jump on the news to close at $2.60; Big Creek followed suit, climbing 81 cents to $2.55.

Big Creek’s primary asset is an option to earn a 50% interest in the Casino copper-gold porphyry deposit northwest of Whitehorse, Yukon, from Casino Silver Mines. The deposit contains an estimated mineral inventory of 417 million tons grading 0.3% copper, 0.04% molybdenum and 0.01 oz. gold per ton. Big Creek also has the right to boost its interest to 100% (subject to a 10% net profits interest in favor of Casino) by paying Casino a total of $15 million by the end of 1994. After hitting a year high of $1, Casino settled back to close up 9 cents at 80 cents.

The deal marks the third copper-gold project for the Hunter-Dickinson team which controls the Fish Lake project near Williams Lake, B.C., through Taseko Mines, as well as the South Kemess project in north-central British Columbia through El Condor Resources.

GWR Resources jumped 31 cents during the period, finishing at 72 cents after hitting a high of $1.03. The company recently completed hole 92-2 on its Miracle-Murphy claims near Lac La Hache, B.C.

The company had reported visual observations of native copper from 53.9 metres to 212.4 metres and chalcopyrite from 212.4 metres to 317.1 metres. However, a subsequent news release noted that on assaying, a 14-metre section assayed 0.22% copper. The company’s consulting geologist noted that the intersection would be considered “ore grade” in a porphyry deposit. Assays for hole 92-3 have not yet been released although the company reports that “considerable” native copper has been observed from 28.7 metres to 45.7 metres as well as bornite and chalcopyrite from 45.7 metres to 99.6 metres. Trading in Silverspar Minerals took a turn for the worse, as the issue plunged $2.63 to bottom at $6. The company recently released an independent interim engineering report on its Silver District property in Arizona suggesting the project has the potential to be an economically successful operation. A full feasibility study was recommended at an estimated cost of about $200,000.

Manhattan Minerals added 38 cents to close at $1.35. The company, in partnership with a private firm, recently staked 77 claims in northern Ontario. Manhattan notes that the claims cover 18 geophysical magnetic targets, some of which are known to be caused by intrusions of potentially diamond-bearing kimberlite.

Plans to merge with a New York based company gave New Lintex Minerals a boost, with the issue adding 25 cents to close at $2.04. The New York company’s major asset is a coal property in northern British Columbia containing an estimated 72 million tons of low-ash, low-sulphur coal as well as $500,000 in cash.

On the ASE, Monk Gold and Resources announced it will begin production at a leased mill near Wawa, Ont., by the end of September. A 10,000-ton bulk sample from the company’s area gold property will be processed. Monk says it is negotiating custom-milling contracts.