Vancouver Stock Exchange Continental Gold down 62^

At press time the VSE Index was off 3.5 points to 699.9, down 8.63 points from a week ago.

Eric Friedland’s Fairbanks Gold was one of several gold issues active today, up a dime at $3.50. The company has a number of projects in Alaska, including the Fort Knox property near Fairbanks where drilling is under way to further test what is believed to be a mesothermal intrusive-hosted gold deposit.

Dragoon Resources was ahead a nickel at $1.71. The company is involved in a number of base metal and precious metal projects in British Columbia.

Dutch Creek Resources, active in the barite business, gained 11 cents to 80 cents at press time, while Silversword Corp., which is involved in oil and gas, moved up a further 35 cents at $4.85.

Calpine Resources was again the volume leader over our report period, although the issue slipped 13 cents to settle at $2.24. The company owns 50% of the Eskay Creek gold project in northwestern British Columbia where a drill program is under way. Consolidated Stikine Silver, which owns 50% of Eskay Creek, was 12 cents easier at $12.75.

Arapahoe Mining was busy this week after announcing good results from an underground sampling program on the Horn Silver polymetallic property in Utah. The issue moved up 18 cents at $1.10. Partner and project operator Bethlehem Resources has started a reverse circulation drill program on the property.

Continental Gold slipped 62 cents to $7.25 despite an announcement that Rio Algom was taking a toehold position in the company. Brokers say the share price before the announcement reflected an expectation that a major company would make a bid for all outstanding shares or at least a control position, consequently investor reaction to the announcement was muted.

Albert Applegath’s High Frontier Resources was also busy this past week. The issue gained 4 cents at 66 cents after announcing a new property acquisition in Nevada.

Canalaska Resources moved up a dime at 65 cents after announcing it had earned a 50% interest in the Central Zeballos mine on Vancouver Island. The company is rehabilitating the former producer to allow access for continued underground exploration.

Following a recent corporate reorganization and name change, Hyder Gold (previously known as Star One Resources) has arranged a private placement to raise about $612,500 for work on its mineral property near Hyder, Alaska. Star One had been exploring a mineral property across the Alaska/British Columbia border from the Premier Gold mine. Hyder Gold gained 13 cents to 51 cents over our report period.

While recent interest in Murgor Resources has to do with the company’s option to acquire ground near the Aur Resources/Louvem property near Val d’Or, Que., the company has also optioned a 50% interest in claims adjacent to the Exploration Orex property in Nova Scotia. Murgor was up 2 cents to 21 cents .

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