Vancouver Stock Exchange Strong dollar stymies gold producers

Higher interest rates in Canada (in comparison to the United States) have strengthened our dollar and reduced fears of inflation which, similar to the U.S., is public enemy number one. But our stronger dollar is bad for commodity producers, particularly gold miners, who in recent weeks have seen the yellow metal drop below $440(US).

Trading activity in Vancouver has tended to be lethargic with many companies posting significant de clines typically in low volume. On the positive side today, however, was Central Crude, which posted a 43 cents increase to $2.28 in moderate volume. The company has ground in the Mishibishu Lake area of Ontario which is being drilled by Noranda.

Lansco Resources, which is trying to market a security system, was ahead 30 cents to $1.55 and re-listed International Prism climbed 14 cents to 46 cents . Prism recently announced plans to acquire ground in the Skyline area of northwestern B.C.

Among losing issues today was Frank Lang’s Cream Silver Mines which dropped 35 cents to 95 cents . The company has been trying to drill a property in Strathcona Park and its legally entitled to be there. But despite a court injunction, environmentalists have delayed the program and, in the process, clouded prospects for the property. Blackmail seems to carry more weight than the rule of law in British Columbia, it seems. At presstime the market index was ahead 6.8 points to 1,075.8 and the advance/decline ratio was even.

Over our report period Skyline Explorations tumbled $1.77 to $9.87. The company is now forecasting production in the second quarter from its Reg property and speculation abounds that it might be longer. Delaware Resource Corp., which has a potential producer near the Skyline property, was off $1.00 to $8.64. The company is rumored to be a takeover candidate. Hycroft Resources and Development, which is controlled by Granges Exploration, dropped 80 cents to $3.90. The company has a gold heap leach producer in Nevada. Omni Resources, which has a good looking gold property south of Whitehorse, fell 30 cents to $2.45.

Villeneuve Resources, part of the Applegath Group of Companies, was the volume leader with a turnover of 664,100 shares. The stock was ahead 15 cents to 95 cents . Goldbrae Development also traded heavily in a volume of 461,000 shares. It was down 5 cents to $1.26. Larry Reaugh, of Rea Gold, recently joined Gold brae’s board.