Vancouver Stock Exchange Gains small on a sluggish market

A number of heavily promoted issues active in non-resource ventures were recently halted by regulatory agencies to add to the market malaise; particularly associated companies, Rococco Resources, Kelan Resources and Fircrest Resources.

After losing ground steadily all month, the VSE Index was off a further 1.08 points to 780.86 today. Rich Coast Sulphur, involved in an offshore sulphur venture, gained a dime to $1.70. Fortress Resources was also busy, up 20 cents to $1.90. The company is involved in a wildcat gas drilling program in Kentucky.

Suntac Minerals settled back a nickel to 64 cents in active trading over our report period. The company announced some good results from its Polaris-Taku mine project in northern British Columbia, however the challenge there will be to prove up more reserves and overcome the complex metallurgy.

Calpine Resources dropped 29 cents to $1.46 after losing ground all week, while partner Consolidated Stikine Silver lost 88 cents to $10.12. The companies each own 50% of the Eskay Creek gold project in northwestern British Columbia where drilling was recently suspended for spring break-up. Because Stikine is a tightly held stock, it is holding its ground far better than Calpine.

McNeil Industrial hasn’t been releasing much information on its Spokane gold property in southwestern British Columbia, but the issue has been a busy one for some time. This week it gained 8 cents to 90 cents on good volume.

Albert Applegath’s Oneida Resources moved ahead 18 cents to $1.18 on speculation that its Mexican Hat gold property in Arizona may have bulk tonnage potential.

Continental Gold bucked the market downtrend and gained 12 cents to $5.87. We gather a number of majors are giving the company’s Mt. Milligan copper-gold project in B.C. a close look. But because Continental already has a joint venture partner in BP Resources, which holds a 30% interest and has rights of first refusal on the property, any suitor would have to like the project enough, and be rich enough to buy Continental.

Athena Gold Corp. released some interesting drill results from its Talapoosa gold property in Nevada, including 240 ft of 0.074 oz gold and over 1 oz silver, however the issue lost 20 cents to $2.00.

And takeover rumours are said to have generated a flurry of activity in American Reserve Mining during the past week. The company recently acquired claims near the Paymaster mine property in Timmins, Ontario and its share price was up 30 cents to $2.05.

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