STOCK MARKETS — Wild trading galvanizes western markets

So much for the so-called Christmas doldrums. Investors and traders don’t appear to be taking any time off prior to the Christmas break, judging from the wild action on western markets.

The Vancouver Stock Exchange resource index traded above 1,650 during our report period before closing up 7.91 points at 1,581.43.

The composite index edged up 0.76 points to finish the week ended Dec. 21 at 1,024.74.

One local mining analyst expressed some concern that share action in the junior resource sector is reminiscent of the summer of 1987, “and we all know what happened in October of that year.”

That observation was qualified with the comment that the gold price could play a large part in moving markets one way or the other in the next few months.

Bullion held onto recent gains, remaining stable at the US$385-388-per-oz. level while companies active in Venezuela continued to gather steam. Tombstone Exploration jumped $1.10 to close at $3.85. The company holds a large ground position in Venezuela including both gold and diamond prospects. The company vended a portion of its Venezuelan concessions to Canarc Resource, which can earn a half interest in nine properties by spending US$9 million.

Canarc slipped a nickel to $3.95.

An announcement that Cadre Resources has entered an agreement in principal involving several mining concessions in Venezuela lit a fire under the issue. Although no property details have been released, Cadre jumped 85 cents to $3. International CanAlaska has acquired El Pauji, a gold concession in the Kilometre 88 region of Venezuela. The company expects to begin an initial phase of exploration early in the new year, including sampling and 5,000 ft. of drilling.

Delgratia Developments can earn an 80% interest by spending $5 million. That company gained 35 cents to finish at $2.55 while CanAlaska added 22 cents to close at 95 cents.

Drill results from the second hole on the Torrie Pipe near Yamba Lake, N.W.T., did little for partners Mill City Gold and Alberta-listed Fibre-Klad Industries and Tanqueray Resources.

Mill City slipped 24 cents to $1.56, Fibre-Klad lost 22 cents to close at $2.10 and Tanqueray dipped 35 cents to finish at $2.80.

Three samples from the hole weighing an aggregate of 36.2 kg contained 14 macrodiamonds and 29 micros, comparing well with the results from the first hole.

The joint venture plans to recover a bulk sample from the Torrie pipe this winter using large-diameter drilling.

Merger plans between Commonwealth Resources and Toronto-listed Aber Resources continued to help the two issues.

Commonwealth, which will merge with Aber on a one-for-three basis, added 21 cents to close at $1.10 on more than 3.3 million shares while Aber finished up 30 cents at $3.40.

Diamond results out of Brazil appear to be helping Southern Copper. In a delayed reaction, the company added 15 cents to close at 70 cents after announcing the recovery of valuable diamonds from independent, alluvial operations on its claims.

Taseko Mines managed to negotiate an agreement with Cominco to acquire the remaining interest in the Fish Lake property for $20 million, effectively removing the May, 1995, deadline which had been hanging over the project. Cominco was entitled to 40% of the proceeds from the sale of the property, to a maximum of $48 million.

Taseko slipped 25 cents to $12.75, putting the company’s fully diluted market capitalization and the current value of the Fish Lake deposit at about $157 million.

Speaking of market capitalization, Sutton Resources now has a market cap of about $300 million.

The issue hit a high of $35.75 before pulling back to $30 for a gain of 75 cents. The company has no explanation for the recent activity in its share price and volume.