Vancouver Stock Exchange Traders skittish as index declines

Brokers say investors have become skittish and conservatively oriented, which means that the bulk of the VSE’s more speculative issues have little appeal.

At presstime the VSE Index was off a further 2.64 points to 761.96, a hefty decline of 17.13 points from a week ago. Market activity was sluggish, with a total of 7.3 million shares valued at $9 million changing hands midway through today’s session.

Redfern Resources lost considerable ground last week as investors continued their across-the-board retreat. However, at presstime the issue regained 51 cents to settle at $2.50. The company’s key asset is a 40% interest in the Tulsequah Chief massive sulphide project in northern British Columbia where Cominco is carrying out a deep drill program.

Crown Butte Resources was off a further 62 cents today to $8.62. Just weeks ago the tightly held issue was trading as high as $19 on speculation that an important discovery had been made on the company’s New World gold-silver-copper property in Montana. Three rigs are currently at work in the discovery area which is called the Miller Creek zone.

Associated companies Prime Resources and Calpine Resources may be bottoming out after their steady decline over the past several weeks. At press time Prime had moved up 11 cents to $2.54, while Calpine gained 12 cents to reach $6. Adrian Resources also regained ground, moving up 8 cents to $1.57.

Prime is now seeking to raise up to $22.5 million in a new offering. The company proposes to use the net proceeds to provide working capital in order to fund current indebtedness and the acquisition of new assets or properties. Companies active in northwestern British Columbia dominated much of the trading activity over our report period. One exception was this week’s volume leader, Nu-Dawn Resources, which gained 18 cents to reach 28 cents . The activity relates to a recent private placement and the sale of 7.2 million Nu-Dawn shares by Nor-Quest Resources to Dydar Resources.

Nu-Dawn and Nor-Quest were co-defendants in a recently settled lawsuit involving Nor-Quest’s sale to Nu-Dawn of a 1,200-tonne-per- day mill in British Columbia for 7.2 million Nu-Dawn shares.

Outside of the Pezim group of companies, American Fibre gained 4 cents to $1.14. The company and its partner have a property near the Eskay Creek discovery.

Meanwhile Calpine’s partner Stikine Resources dropped $5.62 to $42 over our report period. The company is attempting to sell its 50% stake in Eskay Creek through the sale of its shares, but it’s a safe bet a potential buyer would want to wait until the share price has bottomed out.

War Eagle Mining has bounced back on the mining scene with a joint venture agreement for its War Eagle Mountain property in Idaho. A division of Nerco will be exploring the property for its potential to host a bulk tonnage gold-silver deposit.

Brazos Petroleum moved up 76 cents to $4.15. This Calgary-based company has been exploring a property in the Iskut River camp of British Columbia, and is also negotiating to acquire a mining property in the U.S.

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