STOCK MARKETS — Sliding indexes add to ongoing VSE slump

The Vancouver Stock Exchange indexes continued on a downward slide over the report period ended Jan. 17.

The composite index dropped 13.68 points to close at 742.52 while the resource index fell 33.31 points to finish at 1,188.20.

Assay results from confirmation drilling on the Lisbon Valley property in southeastern Utah added 10 cents to Summo Minerals, which closed at $1.30. Eight reverse-circulation holes, drilled in a Z-pattern across the Sentinel deposit, returned 27% more copper than historical drilling indicated. Upgraded minable reserves for the potentially open-pit deposit stand at 7.2 million tons averaging 0.34% copper, with a stripping ratio of 0.3-to-1. The property contains three significant sandstone-hosted copper deposits with total reserves estimated at 39.4 million tons grading 0.49% copper at a stripping ratio of 2.1-to-1. Assays for nearly 70 stepout holes drilled during 1994 are expected to be released over the first quarter. A feasibility study is underway to determine the economics of a heap-leach operation with a projected annual production of more than 30 million lb. copper. Adamas Resources finished up 7 cents to close at 48 cents. The company recently leased a gold property consisting of 18 lode claims within the Battle Mountain Trend near Crescent Valley, Nev. Exploration expenditures are to total US$184,000 over a 3-year period and the lease is subject to a 4% net smelter royalty, as well as advance royalty payments which are to begin this month.

Newly listed Pathfinder Resources began trading on Jan. 16, reaching a high of 50 cents to close at 44 cents. The company can earn a 25% interest in the Joy copper-zinc property held by Toronto-listed Noranda and Major General Resources. A ground electromagnetic survey is under way to define targets for a 1,000-to-2,000-metre drill program, expected to begin shortly. Previous drilling on the property, situated east of Red Lake, Ont., returned a noteworthy intersection of 4.2 metres grading 2.26% copper and 1.81% zinc at a vertical depth of 200 metres. Major General remained unchanged at 43 cents. Disappointing drill results were met by a drop of 84 cents for Olympus Holdings to finish at $1.25. At the Tarantula property in northwestern Mexico, the first stage of drilling by Olympus and joint-venture partner Minera Pionero S.A. consisted of 16 shallow percussion drill holes. Assays returned uneconomic gold values, the best being 0.011 oz. per ton (0.38 grams gold per tonne). The program was designed to test the extent of mineralization between anomalous sites. The next phase of drilling will be restricted to zones of known higher grade.

Liquid Gold jumped 23 cents to close at 78 cents. The company must produce 1,200 tons of ore by Feb. 12, 1995, from Huntington Resources’ Brett gold property near Vernon, B.C., to earn a 50% net profits interest. Liquid Gold is driving an 800-ft.-long adit into the side of the mountain to intersect the high-grade Bonanza zone, where previous drilling returned values as high as 3.2 oz. gold per ton. The adit is within 100 ft. of its target. Huntington Resources closed at 64 cents, up 4 cents.

The acquisition of interests in two properties in the Barry-Urban twps. area of Quebec (near the reported gold discovery of Murgor Resources) had little effect on Winspear Resources, which closed at 97 cents — a loss of 1 cents. Winspear can acquire up to a 55% interest in a 75-claim property, 7 miles northeast of Murgor, from Alberta-listed Cane, which closed down 2 cents to 24 cents.

Winspear can also acquire a 60% interest from Noront Resources in a 33-claim property lying 8 miles northeast of Murgor. Detailed geophysical and trenching programs are planned by Winspear for both properties. Noront closed up 3 cents to 18 cents and also reported that it recently acquired a 15-claim block northwest of Bathurst, N.B., adjoining a lead-zinc property of CDN-listed Hendricks Minerals Canada, where recent assays of boulders returned up to 14% combined lead-zinc and 14 oz. silver per ton. Murgor remained relatively unchanged over the reported week, gaining 1 cents to finish at $1.86.