Vancouver Stock Exchange Chase, Grizzly buck trend

The Vancouver Stock Exchange continued its progression of record lows over the week ended Dec. 11. The Composite Index settled with an 8-year record low close of 505.84 before rebounding somewhat to finish the period down 2.2 points at 507.11. The Resource Index followed suit with a plunge of 15.45 points to close at 536.77. Gold fared poorly as well over the week, dropping from the US$380 level to US$372 per oz.

A summary of trading activity for the month of November paints a bleak picture, with a drop in volume of 11% and a drop in value of 13% compared with the previous month’s figures. Financing for the month were down 41% from October and 66% from the same period last year.

Rumors of a “palace revolt” by Vancouver brokers over the falling trading volumes were met this week by a meeting between exchange officials and a number of brokers. Officials fielded questions and presented a plan to help spur activity. As of yet, no move has been made to oust current management at the exchange.

Chase Resources bucked the market trend in a big way, trading over two million shares and leaping $4 per share to finish the period at $5.38. At noon today, Dec. 12, the issue opened at $8 bid, $10 ask in a classic short squeeze.

The short position as at Dec. 7 was stated at 300,400 shares although Paul Esquivel, a mining analyst at Yorkton Securities who has been following the stock, believes the number is much higher. The company has acquired an option to purchase an interest in a long- dormant copper-gold deposit in the Philippines. Esquivel sees value in the stock at the $3 to $4 level but notes its price has gone too far as shorts are forced to cover their positions.

Another company jumping on the promote-a-Philippine-property bandwagon is Grizzly Creek Resources. The company has a 40% interest in a copper-gold deposit which it can increase to 55%. The issue traded almost 1.3 million shares over the period, reaching a high of 76 cents before closing up 30 cents at 60 cents.

Crown Resources released more spectacular results from the Crown Jewel property in Washington State. The drilling included a 130-ft. intersection grading 1.26 oz. gold per ton and indicates previous reserve estimates could be increased substantially. The market seemed to be expecting good results, however, leaving the stock unchanged in the $9.50-10 range.

Some excellent drilling results from the claim gap on the Ski project in the Eskay Creek area of northwestern British Columbia gave Adrian Resources a boost. The results included a 105-ft. intersection grading 0.39 oz. gold and 40.5 oz. silver. Adrian was up 44 cents to close at $2.30 on over 1.3 million shares.

An announcement that the British Columbia government will not issue a mining lease for the Eskay Creek property until all claim disputes are resolved did not seem to help 50% owner Prime Resources. The issue closed off 30 cents at $4.30. Tagish Resources, a private company 50% owned by Lytton Minerals, restaked a number of claims in the area and is disputing ownership of the claims including ground covering the bulk of the Eskay Creek deposit.

Pacific Sentinel Gold did well, adding 70 cents to close at $4.20. The company is earning a 50% interest in a bulk tonnage gold prospect in Arizona from PIC Prospectors International and Almaden Resources. PIC finished the week up 28 cents at $1.40 while Almaden added 29 cents to finish at $1.24.