Vancouver Stock Exchange Gold no help to market

A move in the price of gold bullion to the US$362 level did not seem to help the Vancouver Stock Exchange’s Resource Index, the index dropping almost 15 points to close at 841.73 July 3. The Composite Index fared better, rising 2.46 points to finish at 799.08. Digger Resources saw a new high, closing at $4.85, up 85 cents. The company has interests in the Chuchi and Goldbrick properties near the Mt. Milligan property owned by Continental Gold in north-central British Columbia.

Another company has entered the hunt for the “next Sullivan mine” in the area south of Kimberley, B.C. Commonwealth Gold recently acquired some claims in the area. Recently, the company’s stock price reacted with more than 1.5 million shares traded up to $1.14, a gain of 6 cents. This is from the 65 cents level two weeks ago.

The Eskay Creek property, north of Stewart, B.C., continued to make the news for the week ended July 3.

Following what appeared to be an unravelling of Corona’s plans to secure ownership of a chunk of the property, the company revised its offer in order to satisfy the principal shareholders of Stikine Resources. The deal with Stikine insiders guarantees them $70 per share through a retractable preferred share, or gives them the right to convert the preferred shares into 8.5 common shares of Corona.

Corona has also gained some of the foothold lost when the deal with the principals of Prime Resources fell through. Corona made a deal with Jim Pattison to buy his 11% interest in Prime for one share of Corona plus enough cash to top the offer off at $9 per share. The fate of the remaining 14% held by insiders including Murray Pezim is yet to be seen.

The uncertainty created by all this jockeying appears to have had an effect on Prime, the issue dropping 88 cents to $8 1/8.

A three for two stock split changed the trading level of Cal Graphite over the period, the stock moving from the $16 level to the $12 level.

A less than glowing article in a local Vancouver paper this week may have hurt Barkhor Resources and Kokanee Resources, two other players active in the area. Barkhor shed 20 cents to the $1.80 level while Kokanee slumped to $4.40 from the $5 level.

Seine River Resources added 25 cents to finish the period at 90 cents on good volume. The company recently announced an agreement to purchase an underground placer mine in California.

Athena Gold came alive, rising 40 cents to $2.20. Placer Dome U.S. is exploring the company’s Talapoosa property in Nevada where the company has been reporting good gold values over wide intersects.