Vancouver Stock Exchange Stikine spurs activities

The continued slide in the price of gold has not deterred Vancouver players from taking part in a shopping spree this past week. Although gold fell about US$4 to the US$404-level, the Vancouver Stock Exchange staged a strong rally, rising about 12 points at its highest, before finishing the period ended March 6 with a gain of 7.66 points, closing at 732.26.

Much of the activity involved companies with properties in the Stikine Arch area just north of Stewart, B.C. The order of the week seemed to be: “If the company has claims in the Stikine, buy.”

A lot of the action was likely spurred by a research report on the Stikine Arch area released at the end of February by L.O.M. Western Securities.

With a number of companies planning exploration programs in the area for the coming season, the report notes possible other discoveries, outlines the players gives advice on the best bets.

The more active issues with property in the area included Schellex Gold which traded 850,000 shares, rising more than 20 cents to 55 cents before pulling back to 41 cents. The company has claims in the Galore Creek area and holds an option to earn a 50% interest in Teck’s Snip claims, southeast of the Snip deposit owned by Prime and Cominco.

Kestrel Resources was also active, rising 15 cents on more than 715,000 shares to $1.25, representing a move of about 35 cents in the past few weeks. The company has nine properties in the area with an exploration budget in excess of $2.25 million, the majority of which will be spent by earn-in partners.

Canarc Resource, which has claims surrounding the Eskay Creek property, reached a high of $2.20 before settling back to $1.75 for a gain of 15 cents on more than 465,000 shares. Calpine has an option to earn a 66.67% interest in the claims by spending $2 million on the property.

Other active issues with property in the area included Kenrich Mining rising 16 cents on 107,750 shares to $1.85 and Consolidated Goldwest Resources, which climbed 3 cents on 367,900 shares closing at 68 cents. Milan Resources and Exploration completed a large unit offering, trading more than 2.6 million shares to close up 6 cents at 41 cents.

Although Calpine Resources and Prime Resources Group stayed essentially flat over the period, Stikine Resources added $2 per share rising to $39.50 on light volume. A number of brokerage houses issued buy recommendations on the stock after the release of the most recent reserve figures for the company’s 50% owned Eskay Creek property.

Shareholders appear to be disappointed with drilling results from the Polaris-Taku property owned by Suntac Minerals. The issue shed 18 cents on over one million shares to close at 51 cents.

Kokanee Explorations was active again, dropping 15 cents to $3.35 on 174,500 shares as shareholders await drilling results. Some of the activity is linked to short covering with the issue’s short position.

Seven Mile High was halted during the period after minority shareholders obtained a court order allowing an inspector to investigate the company’s books on allegations of misappropriation of company funds. The issue last traded at $1.45 per share.