Vancouver Stock Exchange Goldbrae moves up a dime

Analysts who predicted that gold stocks would lead the market recovery could be right; but there’s some question whether stocks will return to the somewhat inflated multiples we saw earlier. Reflecting stronger metal prices and the sharp rise in Toronto’s gold index, Vancouver jumped almost eight points by presstime to 1,136.

But market activity here is still pretty lethargic and yesterday’s volume was only 11.5 million shares, despite a 12 point increase in the vse index. Because of current market conditions many companies have cancelled financings while others have accepted lower prices. This suggests a downturn in 1988 exploration activity which would probably affect juniors more than established gold producers.

In active volume today, Goldbrae Developments climbed 10 cents to 60 cents . The company is involved with Westfield Minerals in an interesting polymetallic (gold-silver-zinc-copper) discovery in the Flin Flon area of Manitoba. One of the best intercepts to date returned 29.1 ft of 0.2 oz gold, 3.4 oz silver, 0.78% copper and 23.4% zinc. Drilling is continuing.

Texas Northern Minerals, which recently changed its name from Texas Northern Oil and Gas with no share consolidation, was 12 cents stronger at 80 cents . The company expects to drill its Nine Mile property in Montana throughout the winter. North American Metals, which has received government approval for the mine/mill- tailings components of its Golden Bear project in northern B.C. (but not the road) jumped 10 cents to $2.75.

Over our report period, Delaware Resources shot up $1.62 to $7.75 on news the company had encountered some exceedingly high grade material on its SNIP project in northwestern B.C. Hole S-70 returned 30.2 ft of 1.1 oz gold, No S-71 gave 33.5 ft of 2.6 oz and S-84 averaged 2.4 oz over 31.5 ft. Not too shabby.Veronex Resources also came on strong, rising 88 cents to $8.75. The company says it recently received $1.2 million from Indonesian oil sales. Murray Pezim’s Destiny Resources was a strong performer again this week, posting a 63 cents gain to $6.13. The company has made an impressive gold discovery near Timmins.

Pezim’s Golden Nevada closed at $3.05 (its Ross River discovery also looks good) and Chelsea Resources recovered somewhat, gaining 25 cents to $2.75. The company has a small high grade producer near Lewistown, Mont. Mintel International, an industrial, was the volume leader with a turnover of 1.2 million shares for a 17 cents loss to 48 cents .