Vancouver Stock Exchange (November 04, 1991)

Gold reversed a promising uptrend during the week ended Oct. 29, dipping back below the US$360-per-oz. level to settle at US$357. Trading activity on the VSE remained relatively quiet, but both the resource and composite indices managed narrow gains, finishing at 559.86 and 511.29 respectively.

Melinga Resources topped the most active list, trading more than three million shares to close at 61 cents for a gain of 34 cents. The company recently entered into an agreement to earn a 55% interest in two exploration permits covering more than 470,000 acres in the eastern Northwest Territories. A number of shear-hosted and disseminated gold zones were discovered on the claims recently. Melinga plans to conduct geophysical work followed by diamond drilling in 1992.

Both Cove Resources and Springer Resources remained active, with trading volumes of 1.3 million and two million shares, respectively. The issues lost ground after the release of further drilling results from the companies’ Unuk River joint venture with Granges in northwestern British Columbia. The assays ranged from 0.039 oz. gold and 0.46 oz. silver per ton over 2.3 ft., to 0.078 oz. gold and 6.76 oz. silver over 6.6 ft. Cove dipped nine cents to finish at 21 cents, while Springer dropped 22 cents to close at 26 cents. Drilling on the property is continuing.

Drilling results from the Golden Quail property in San Bernardino Cty., Calif., left joint venture partners Golden Hemlock Explorations and Golden Quail Resources little changed. Hole G91-11 intersected 165 ft. grading 0.33 oz. gold while hole G91-16 intersected 100 ft. grading 0.21 oz. Golden Hemlock added a nickel to close at $1.65 while Golden Quail lost a dime, finishing at $1.

Drilling on the McBride Lake joint venture in northern Manitoba appears to be generating some interest in 80-20 partners Eastmin Resources and Bellex Resources. The companies report that drilling has intersected a targeted massive sulphide lens although no width was given and assaying has not been completed. Bellex closed up 22 cents at 60 cents while Eastmin added 23 cents to finish at $1.

Golden Ring Resources traded more than 1.4 million shares to close at $1.33 for a gain of 17 cents. The company recently completed an agreement with ASE-listed Trev to acquire a 100% interest in that company’s Jamaican landholdings. Golden Ring plans to begin an exploration program shortly. A 1-for-10 rollback in Prime Equities seemed to help the issue which closed at $4.35 for a gain (on a post-consolidated basis) of more than $1 from the previous week’s pre-consolidated close of 31 cents.

Silver Butte Resources filed suit against Tenajon Resources over a portion of Tenajon’s SB joint venture with Westmin Resources. Silver Butte has a 20% carried profits interest in the ground and alleges a breach of the original agreement Silver Butte had with Esso Resources. Tenajon finished off three cents at 14 cents while Silver Butte remained unchanged at 23 cents. Reserves from the SB gold deposit are being milled at Westmin’s Premier Gold mill near Stewart, B.C.