Vancouver Stock Exchange (January 08, 1990)

Easing gold prices and uncertainty about the slowing economy are believed to have taken the wind out of a rally that began on Wall Street and the eastern Canadian exchanges just after the New Year. Although trading in Toronto and Montreal was active for this time of year, senior gold issues were off because of the weaker gold prices. That usually translates into reduced interest for the more speculative precious metal issues listed on the Vancouver Stock exchange.

At noon today, Jan. 3, the VSE index was down 4.8 points to 713.92, although this represents a modest gain of 13.62 points from a week ago.

Suntac Minerals was among the more active issues today, up 4 cents to 40 cents . Now a Prime group company, Suntac recently raised funds for a revised Phase III program at the Polaris-Taku project in northwestern British Columbia. The former gold producer is not far from another former producer; the Tulsequah Chief massive sulphide project being explored by Cominco and Redfern Resources.

Highland Queen Mines was the busiest issue for the week ended Jan. 2, down 4 cents to 20 cents . Apparently, the company has been busy acquiring gold-silver properties in the southwestern U.S. during the past several months, including one near Viceroy’s Castle Mountain gold project in California. And several weeks ago Highland Queen signed an option to purchase 100% of a property hosting known vanadium reserves in Nevada.

Trading activity in Nuspar Resources has to do with the company’s plans to acquire claims near Afton’s newest open pit, the Ajax mine near Kamloops, B.C. Details are sketchy, but Nuspar gained a nickel to 13 cents .

Nuspar has been noting the exploration work being done by Naxos Resources (ASE) on the nearby Shumway Lake “gold- platinum group elements” prospect. Although no assays were released for any of the over 20 diamond drill holes, Naxos says, “global geological estimate of tonnage in the norite exposed on the property is 30-100 million tons.” The company did, however, report varying assay results from several laboratories testing flotation concentrate from a 1,800-lb. bulk sample taken from a 5-hole rotary drill program. The reported “heads recovery” ranged from 0.23 oz. gold per ton from a Hong Kong-based firm to 0.01 oz. gold from a Canadian firm.

Another company active in this area, Skyrocket Exploration & Resources, was delisted by the Vancouver Stock exchange on Dec. 29. Last year Skyrocket issued numerous press releases on its Boy property that were taken to task by officials of VSE. The press releases were long on speculation but short on hard facts, particularly on the results of a drill program that Skyrocket says produced core “far beyond our wildest dreams and greatest expectations.” Assays from this core were never released.

Alaskon Resources got a boost of 15-29 cents after announcing plans to increase its interest in the Canyon Mine gold properties near Quesnel, B.C. The exploration focus on the property has shifted from placer to a hard rock target. A drill program is due to begin shortly in the discovery area where last year’s drilling intersected 24 ft. of 0.20 oz. gold.