Vancouver Stock Exchange Sorry year-end stats for ailing VSE

VSE officials say the trauma of the October 1987 market crash was a pervasive influence throughout fiscal 1988/89, compounded by the steadily eroding price of gold. Officials also noted that retail investors were “reluctant participants” in all equity markets, a particularly significant factor for Vancouver’s specialized venture market.

A strong U.S. dollar and last week’s short-lived upward blip in gold prices left most investors untempted by gold issues. Consequently, trading remained quiet but steady at press time. The VSE Index was off marginally to 704.46 points, but ahead 1.08 points from a week ago.

Continental Gold gained 25 cents at $5.00 today. The company is still busy drilling to expand reserves at its 70%-owned Mt. Milligan gold- copper project near Prince George, B.C. We gather an updated reserve is expected shortly.

Viscount Resources gained a nickel at 30 cents after announcing high grade gold assays from the Serp zone on the Skylark/O.B. mine project (with Skylark Resources) near Greenwood, B.C. The company says two holes returned 4-ft sections with values of 3.3 oz gold and 2.4 oz gold respectively.

Blue Emerald Resources was among the more active resource issues over our report period. The company climbed 73 cents to close at 98 cents after announcing it had the right to earn a 60% interest in claims near the recent nickel-copper discovery of McNickel Inc. in Quebec. Richard Nemis is now heading up the company after a recent management change.

Little-known Fireball Resources reports it has interested an average of 32 oz silver, 12% lead and 1.88% zinc over a 4-ft width at its Bluebird claims near Kalso, B.C. The issue gained a dime to 50 cents .

Bema Gold settled back 14 cents to close at $1.18. Calpine Resources also slipped this week, losing 16 cents to close at $1.25 while Prime Resources fell 39 cents to close at $1.96. Inter-Globe Resources lost a further 7 cents to settle at 55 cents and Oneida Resources dropped 15 cents at $1.25.

Montello Resources is negotiating to acquire a 50% interest in a producing gold mine in the western U.S. The company is also negotiating with European institutions for a substantial amount of financing to make this acquisition. We were told details will be released when the deal closes. Meanwhile, the issue gained 25 cents to $2.40.

Redfern Resources was up 2 cents at $1.26 after announcing that Cominco Ltd. is about to begin a $1.5- million program at the Tulsequah Chief base/precious metals project in British Columbia. The program is expected to add to the current reserve base of 2.38 million tons grading 2.03% copper, 1.25% lead, 6.25% zinc, 0.075 oz gold and 2.68 oz silver per ton.

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