Vancouver Stock Exchange Prime Equities deal hits snag

Both the VSE composite and resource indices staged rebounds over the week ended March 26. The composite index rose almost 10 points to finish at 570.22, while the resource index edged up 8.66 points to the 578-level. Gold dipped below the US$360-per-oz. level on recurring rumors of a large Soviet sell order hanging over the market.

Prime Equities took a hit over the period, dropping 29 cents after the company announced the financing deal it had been negotiating had fallen through. Prime was rumored to be negotiating with RTZ Corp. to raise in the order of $5 million. The issue finished the week at 87 cents.

Shareholders of Chase Resources had a wild ride over the week. Following a trading halt for the dissemination of the findings of a VSE investigation, the issue plunged from the $3.60 level to a low of $2.45 before rebounding to $3.15 by the end of the period.

The company announced the resignation of its president and one director after the exchange discovered trading irregularities in the issue’s shares. Chase plans to continue developing its Taysan copper-gold project in the Philippines.

The axiom “buy on rumor, sell on news” rang true over the period for shareholders of Bellex Mining. The issue shed 51 cents to close at $1.17 after the company released drill results from its Monument Bay joint venture with Noranda in Manitoba. The much-anticipated results included a 9.5-ft. intersection grading 3.08 oz. gold per ton (uncut). Drilling is continuing.

American Fibre and Silver Butte Resources continued to edge up over the period in anticipation of this season’s drilling program on the company’s S.I.B. claims located in the Eskay Creek area of northwestern British Columbia. The drilling will test the extent of mineralization encountered in hole 90-30 which intersected 46.9 ft. grading 0.42 oz. gold and 30.9 oz. silver per ton.

American Fibre closed up 20 cents at $1.49, while Silver Butte added 21 cents to finish at $1.49.

Fairfield Minerals added 15 cents to close at $1.50 on light volume after announcing it had re-acquired the Elk property in southern British Columbia from Placer Dome. Placer earned a 50% interest in the property last year, outlining 234,000 tons grading 0.63 oz. gold and 0.64 oz. silver.

Placer continues to hold an option to earn a 50% interest in the nearby Dill and Vin properties and plans to proceed with a 6,000-ft. drilling program in June.

Drilling on the Goldstream project by joint venture partners Goldnev Resources and Bethlehem Resources has intersected the down plunge extension of the deposit; indications are present reserves of 2.05 million tons grading 4.8% copper and 3.1% zinc will be increased. Bethlehem finished the week up a nickel at 57 cents, while Goldnev was off 7 cents at 90 cents. Recent insider trading reports show Murray Pezim sold 145,500 shares of Goldnev at prices averaging about $1.09 to hold a total of about 1.45 million shares.

Cannelle Explorations did well over the period, jumping 43 cents to $1.06. The company recently announced the acquisition of ground adjoining its Dot 1 claim in the Eskay Creek area of northwestern British Columbia.