Vancouver Stock Exchange Bargain hunters scoop up juniors

Local mining analysts are saying the VSE’s dismal performance of late has more to do with the strong U.S. dollar and gold’s prolonged price slump than to fall-out damage from an unbalanced rehash of the VSE’s past scandals. With little real incentive to hold either bullion or gold stocks, most junior mining issues are being met with indifference by retail and institutional investors alike.

The VSE Index was off marginally to 686.10 points at press time,down 13.14 points from a week ago. Goldbelt Mines was active today, up 2 cents at 60 cents . The company was to have merged with Granges Exploration, however that proposal was recently scuttled by dissenting Granges shareholders.

Because many issues fell to new lows during the past few weeks,bargain hunters are beginning to appear to scoop up juniors with the more promising exploration and development projects.

Calpine Resources, for example, gained a modest 9 cents to settle at $1.32 over our report period, while Consolidated Stikine Silver moved up 88 cents to close at $7.50. The companies are partners on the promising Eskay Creek project in northwestern British Columbia. Prime Resources also moved ahead, gaining 35 cents to $2.25.

Continental Gold picked up 80 cents to close at $4.90 on light volume.The com pany is about a month away from releasing an updated reserve figure for its Mt. Milligan gold- copper project near MacKenzie, B.C.

American Pacific Mining was active again this week, moving up a nickel to close at $3.40. The company operates a polymetallic mine in Honduras, but it is also moving to acquire about 14% of Dolly Varden Minerals, a company active on a promising gold property in the Kitsault area of British Columbia. Dolly Varden gained 9 cents to close at75 cents .

The Lac St. Jean area of Quebec is heating up again, if trading in companies active there is any indication. An interesting nickel-copper discovery was made on a property operated by McNickel Inc.. St. Phillips Resources, which has a stake in the discovery claims, climbed 34 cents to close at $2.90, while minor player Ramcor Resources moved up 8 cents to settle at 50 cents .

Two associated companies active nearby, Diana Resources and Fancamp Resources, also moved ahead. Diana was up a nickel at 25 cents , while Fancamp gained 17 cents to settle at 37 cents . The companies say recent reconnaissance work has revealed sulphide (nickel/copper) mineralization on their property. The companies also say vuggygossans are suggesting the presence of heavier sulphides in the vicinity.

Can-Mac Exploration, which is reported to be carrying out a bulk sampling program at its Mon property in the Northwest Territories,was off 2 cents at 9 cents . Several officials of the company were convicted earlier this year of trading in securities while without a receipt for a preliminary prospectus.

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