Vancouver Stock Exchange Trading reflects field-work lull

With winter exploration programs finished, and summer programs not yet under way, trading activity on the VSE can only be described as flat in this “in-between season.” May is also expected to be fairly quiet, with activity picking up in June as exploration programs begin gathering steam throughout British Columbia. At presstime on April 24, the VSE composite index was down marginally at 561.86, while the VSE resource index had inched up a fraction to 545.39 points.

The big news in Vancouver is that Redfern Resources was granted an exclusive option to acquire all of Cominco’s interest in the Tulsequah Chief massive sulphide project, the Big Bull property and certain surrounding claims. The option gives the junior control over 100% of the project, which has estimated reserves of 8 million tons grading 1.55% copper, 1.23% lead, 6.81% zinc, 0.08 oz. gold and 3.19 oz. silver per ton.

It appears, too, that Redfern will take on a new partner for its northwestern British Columbia project which is thought to have considerable upside potential. Local industry observers predict that if this development is realized, it could lead to a more aggressive program on the property this year.

Thios Resources was the most active issue over our report period ended April 23, up 18 cents to settle at 49 cents. The company is one of a group of juniors that will benefit from a cash infusion by Teck. The deal between the major and Prime Equities and its stable of juniors is viewed here as a positive development for both sides. Teck will have “foot-in-the-door” exposure to some interesting exploration plays, while the Prime Equities’ companies will be funded for the coming season.

The Prime Equities group had been talking with Kennecott for some time about senior financing; however, the major’s conservative parent company is rumored to have backed away because of Murray Pezim’s well publicized tangle with British Columbia securities regulators. Kennecott’s loss is Teck’s gain.

Prime Equities lost ground over our report period; the issue slipped 14 cents to 85 cents.

Fair Harbour and ALN Resources also saw some action. The companies are involved in oil and gas ventures.

One of the more active issues last year, Barkhor Resources, announced it is negotiating to acquire a property in the Purcell Basin adjacent to the Star property in southeastern British Columbia. The issue gained 8 cents to reach 35 cents.

Armeno Resources for year has been talking about production at the San Bartolome mine in Ecuador, a joint venture; a startup date has now been set for July. The operation is to produce a bulk concentrate which will contain gold, silver, lead and zinc. The company’s Japanese partner recently agreed to provide additional funding for the project by lending US$1.45 million. Armeno’s share price remained flat at 44 cents.

Varitech Resources also remained flat, at 95 cents, after announcing it is acquiring by staking an additional 158 claims adjacent to the Big Onion copper-gold property near Smithers, B.C.

The exercise of warrants accounts for recent trading activity in Arizona Star Resources, which remained flat at 42 cents. The company, associated by way of common management to Bema Gold, is involved in several Californian mineral properties.

More recently, Arizona Star took on a 51% interest in a Chilean gold project considered to have similarities to the Refugio gold project, Bema’s joint venture in Chile, which is slated for production once financing is arranged. Arizona Star is looking to start a drill program on its property this fall.