STOCK MARKETS — Taseko stock price reacts to news about Fish

The price of gold fell more than $6 to the US$344-per-oz. level during our report period ended Oct. 13. This decline, coupled with media coverage of a recent article in The Observer (a respected London weekly which described the Vancouver Stock Exchange as “scandal-ridden”), was little help to an already embattled market.

The VSE resource index posted a 6.33-point drop during the week, finishing at 554.50, while the composite index remained virtually unchanged at the 557 level.

The Alberta Stock Exchange composite index edged down 2.14 points to close at 874.75.

Taseko Mines estimates that the Fish Lake deposit southwest of Williams Lake, B.C., contains 1.19 billion tons grading 0.23% copper and 0.012 oz. gold per ton at a 0.3% copper-equivalent cutoff grade. This announcement helped push the issue to a high of $16.

However, a recent article in The Globe and Mail, which noted that the company had only until May, 1995, to find a buyer for the property, may have dampened enthusiasm somewhat. The issue finished the week off 50 cents at $13.12. Under a property agreement with Cominco, if Fish Lake is sold for more than $70 million, Cominco will receive 40% of the proceeds to a maximum of $48 million.

If a buyer can’t be found by May 31, 1995, management reverts to Cominco, with Taseko holding only a 20% net profits interest.

Market capitalization of Taseko now stands at about $139 million, putting an implied value of at least $187 million on the property.

About 1.5 miles to the north of the Taseko-Cominco ground, Valerie Gold Resources expects to start a 6-hole drilling program on its Mega-Gold property. Kennecott, which can earn a 51% interest in the property by spending a total of $4 million, has committed to fund the initial $170,000 program and pay Valerie $50,000 cash.

The drilling will test a large geophysical target with four holes plus an additional hole drilled in each of two smaller targets. Valerie finished the week up 12 cents at 90 cents.

Miramar Mining lost some ground, falling 20 cents to close at $1.40. The company recently reached an agreement with Viceroy Resources and affiliated company Channel Resources, giving them an option to earn a 50% interest in Miramar’s Bruner gold property in Nevada.

Kookaburra Gold did some back-tracking after its recent price surge, falling 28 cents to close at $1.80. AG Armeno Resources, which recently granted Kookaburra the right to earn a 65% interest in a copper-oxide project in Ecuador, finished the period unchanged at the $1.20 level.

Athena Gold touched a new high of 53 cents on thin volume, finishing at 48 cents, up 3 cents. Pegasus Gold is in the process of evaluating the company’s Talapoosa gold property in Nevada and may earn a 70% interest by spending a total of US$2.8 million and making cash payments totalling US$3.25 million. Last reported reserves at the property were stated at 19.6 million tons grading 0.045 oz. gold and 0.6 oz. silver per ton.

Texas Star Resources gained 33 cents to close at $2.53. The company recently negotiated the exclusive right to enter into a joint venture with the owner of certain lands in Arkansas’ Pike Cty, some of which adjoin the Crater of Diamonds State Park.

Trading in Melinga Resources heated up with more than 1.8 million shares changing hands. The issue closed down 6 cents at 20 cents. Melinga plans to drill several confirmation holes at its Macuelizo gold-oxide project in Honduras as well as to test four of the most prospective oxide targets on the property. The company stated that joint venture discussions with a major mining company are continuing.