STOCK MARKETS — VSE’s resource index posts a healthy gain on

Looking back over 1992, one is reminded of the potential for spectacular gains on western markets. The Vancouver Stock Exchange resource index posted an almost 50% increase to 667.08 points by the end of the year. The composite index followed suit for a more modest rise of slightly more than 100 points to the 628 level.

Despite its poor image and many detractors, the performance of the Vancouver market provides a stark contrast to the lacklustre returns of the recession-dulled major stock exchanges.

At the forefront of this year’s activity was, of course, the continuing exploration success at the Point Lake diamond property owned by Dia Met Minerals and BHP Minerals Canada in the Lac de Gras area of the Northwest Territories.

The discovery of additional diamond-bearing pipes on the ground helped propel Dia Met to a high of $60 during the year. The issue’s close at year-end at the $40 level represents almost a 10-fold increase in price from the beginning of the year.

Companies that staked or acquired ground positions within 80 km of the Point Lake discovery finished the year with similar gains. The list includes Almaden Resources, which finished the year at $1.25, up from a low of 24 cents; Commonwealth Gold, up by more than $1 from a low of 13 cents; Dentonia Resources, with a gain on the year of $1.56 from a starting point at 9 cents; Kettle River Resources, with a 30-fold increase from its low of 10 cents; Lytton Minerals, up almost $2 from a low of 14 cents; Williams Creek Resources at $1.11, up from 14 cents; and Winspear Resources, up $1 from the 40 cents level.

Diamond-generated market activity out of the Northwest Territories also helped issues exploring for the precious stone in other parts of the world. Texas Star Resources came into the limelight with its participation in a syndicate hunting for diamonds in Arkansas, as well as more recent joint ventures to explore for diamonds in Ontario and Manitoba. The issue posted better than a 10-fold increase during the year to close at $3.80. Canadian Overseas Exploration touched a high of 92 cents before finishing the year at 62 cents, up from a low of a nickel. The company is proceeding with plans to complete a feasibility study on its offshore diamond project in Namibia.

Gold, recently trading just above $330 per oz., did little to create trading excitement during the year.

Some of the most significant gold-related gains in 1992 can be attributed to recent activity in Venezuela near Placer Dome’s Las Cristinas property. Mt. Grant Mines, which owns claims nearby, recently touched a high of $5, up from a low for the year of 19 cents. The company also has a joint venture with Queenstake Resources to explore and develop that company’s Bizkaitarra gold concession near Placer’s discovery.

Crystallex International also owns ground in the area and finished the year at $2.44, up from 87 cents at the start of the year.

Porphyry copper-gold projects continued to be the focus of activity for the Robert Dickinson/Robert Hunter group of companies despite the decision by Placer Dome in earlier 1992 to write off its investment in the Mt. Milligan project north of Prince George, B.C. Hunter and Dickinson orchestrated the sale of Mt. Milligan to Placer in 1990 for a total price of $266 million. The group’s latest project is the acquisition of a 100% interest in the Casino copper-gold deposit in southern Yukon through Pacific Sentinel Gold. The company will have control of the large copper-gold deposit following the completion of a proposed merger with Casino Silver Mines.

Casino Silver posted a gain of $1.73 during the year, finishing at $2.35, while Pacific Sentinel added about 90 cents to close the year at $2.90. The group is now working to attract buyers for its two other projects in British Columbia, the Fish Lake deposit owned by Taseko Mines and the South Kemess deposit owned 60% by El Condor Resources and 40% by St. Philips Resources.