Vancouver Stock Exchange Pezim vows to quit exploration

The Vancouver Stock Exchange’s Composite and Resource indices continued their slide this week as gold held above the US$360 level. The Composite Index fell 20.27 points to 769.63 while the Resource Index dropped nearly 28 points to finish the period ended July 17 at 800.32.

While Murray Pezim swore to quit the exploration game after he vindicates himself at the ongoing insider trading hearings, sellers pushed many of the issues with ground in the “Golden Arch” region north of Stewart, B.C., into the basement.

Adrian Resources was one of the biggest losers over the period, plunging $1 5/8 to finish at $6 3/8 as investors await assays on the company’s ongoing drilling program.

Prime Resources Group fared poorly over the period as well, dropping 7/8 to $7 3/8. The revised agreement between Pezim and other insiders to tender their Prime stock to Corona under a sweetened deal may have taken some of the takeover speculation out of Prime’s sails.

Other issues taking hits over the period included Avondale Resources, dropping 59 cents on over 1.2 million shares to finish at $2.10, and Canarc Resources, which shaved $1 of its price to close at $3.15. Eurus Resources fared poorly as well, slipping 70 cents to $3.15.

Confusion over who owns what in the Eskay Creek area will likely continue for the foreseeable future. Tagish Resources, the private company which did much of the overstaking in the area, is challenging title to the TOK 3-6 claims which host the bulk of the reserves at Eskay Creek. The challenge is considered a “long shot at best” since, even if the Gold Commissioner rules in Tagish’s favor, Adrian resources and Eurus Resources (to a lesser extent) would have precedence of title by virtue of having overstaked this ground before Tagish.

For this reason, Tagish is appealing a ruling that awarded Adrian title to the IKS-1 claim. Tagish is hoping to get title to this claim on the basis of a section 35 complaint. In this case, 16 of the 18 necessary identification and corner posts were placed, which the Gold Commissioner considered to be a bona fide effort in view of the topographical restraints.

Waterford Resources which may or may not have some connection to Tagish closed off 35 cents at $3.

Kokanee Resources and Barkhor Resources hit a down-draft over the period as investors digested exploration results from the company’s properties in the Cranbrook area. Barkhor’s price was slashed 51 cents on heavy volume to close on July 17 at $1.19 while Kokanee took a 60 cents hit to finish at $3.90.

A bright spot over the period was provided by Gulf International Minerals, which was halted on the morning of July 18, up 45 cents at $1.50. The company subsequently reported that drilling on the company’s McLymont property has encountered mineralization containing visible gold in two holes.