Vancouver Stock Exchange Trading is dull as gold falls

Trading was relatively dull during the week ended Feb. 27, the Vancouver Exchange dropping 0.42 points to 724.6. Gold bullion’s steep dip may have had something to do with the market’s lethargy. The yellow metal shed about US$12 per oz. to the US$408-level over the week.

Although many were surprised by the drop in light of the carnage on the Tokyo market, one explanation offered was that Japanese investors were forced to raise cash to cover stock market losses by selling precious metals holdings.

The Nikkie lost about 4,000 points at its lowest point, a routing of over 10%, before it recovered somewhat.

A bright spot on the Vancouver Market was provided by Akiko- Lori Gold Resources. The company put in an impressive performance, leaping over $1.25 per share to $5 5/8 on almost 290,000 shares. Investors are speculating on the uncovering of a major gold find at the Springpole property in northwestern Ontario. Joint venture partner Noranda is drilling on the property.

Kokanee Explorations finished the week in the most actives again, trading 786,400 shares and reaching a high of $3.80 before slipping back to the $3.50 level. Investors await results from the company’s drilling program on two properties near Cranbrook, B.C., which are reported to have good massive sulphide potential. There do seem to be some skeptics, however. The declared short position as of Feb. 23 was the largest of the VSE resource issues weighing in at 354,700 shares.

Trading was also active on Suntac Minerals, the issue trading over 700,000 shares to close out the period flat at 70cents per share. The company continues to get encouraging results from its Polaris-Taku gold property in northwestern British Columbia. The latest hole intersected 13.1 ft. grading 0.47 oz. gold per ton. The short position on the stock dropped 45,000 shares in the latest period to 142,000 shares.

Miramar Mining took a good jump during the week rising 65cents to $3.55 per share on over 250,000 shares. Street sources indicate that European buying is largely responsible, in light of no further news being released on the company’s main holding, the Paymaster property in Nevada.

Volume continues to hold up on Adrian Resources with more than 350,000 shares changing hands, the issue holding steady at the $1-level. The company’s claim to the ground north of the Eskay Creek property remains in limbo following the Gold Commissioner’s claim cancellation. The subsequent litigations are not likely go away in a hurry.

Kestrel Resources was active during the week trading about 350,000 shares and rising 30cents to the $1.20 level. The company has a very large land holding the Stikine Arch region north of Stewart, B.C. Budgeted expenditures by earn-in partners on Kestrel’s claims are in excess of $2 million for the coming season.