Vancouver Stock Exchange Prime unaffected by Gulf crisis

The down-draft experienced by the Toronto and New York stock exchanges in the wake of rising tensions in the Persian Gulf did not seem to have much of an effect on the Vancouver Stock Exchange. The Composite Index dropped a relatively mild 17 points while the Resource Index lost about 8 points to finish at 798.65.

Many gold watchers were no doubt disappointed as news of an Iraqi troop buildup on the Saudi Arabian border and the subsequent mobilization of American troops and equipment to Saudi Arabia failed to ignite much of a move in the yellow metal.

Gold finished the week up about US$13 at the US$383 level.

Prime Resources Group, a 25% partner in the Ski Project, remains unaffected, finishing the period unchanged at $7 3/8.

The release of assay results from two drill holes on the Ski Project sent Adrian Resources into a tail- spin, the issue losing $1 1/4 to finish the week ended Aug. 7 at $7 3/4. Rumors concerning the results of the current drilling program have sent Adrian on a roller coaster ride over the past few weeks.

The two holes assayed below 0.15 oz. per ton gold over about 15 ft. intercepts, putting them far below the range found in the rich Eskay Creek property to the south.

Adrian notes in its release, however, that the two holes intersected the eastern margin of the projected trend of the Eskay Creek’s 21B zone. Perhaps these holes are the origin of rumors which originally sent the stock down to the $6 level from $9 a few weeks ago.

In its release, Adrian notes that two other holes, from which no assays have yet been received, intersected what is thought to be the middle of the extension of the 21B zone. The holes were reported to have the strongest mineralization observed to date.

Avondale Resources fared poorly after assay results were released for drilling on the company’s Forest property, northwest of Stewart, B.C. The issue lost 53 cents to close at $1.37. The results included some wide intercepts of low-grade gold, silver, and copper.

High Frontier Resources announced a deal with Kennecott where that company can earn a 50% interest in High Frontier’s Stikine Arch properties by spending $1.4 million. The issue closed up 13 cents to finish at 68 cents.

Barkhor Resources took a hit over the period as watchers greeted poor drilling results from the Star property with a sell-off. Barkhor finished at 55 cents, down from $1.01 a week ago. The company’s partner, Kokanee Resources, also gave up some ground, closing down 50 cents at $3.20.

Equinox Resources came to life over the period rising 20 cents to the $1.40 level after announcing financing for its Zenda mine in California.