Vancouver Stock Exchange Vancouver market plunges in wake of Eskay

Both the Vancouver Stock Exchange Resource Index and Composite Index fell steeply over the week ended Aug. 21, shedding 43.44 points and 36.95 points respectively, or about 5% each. The stark black and white of actual assay results squashed investor expectations of good drilling results on the SKI project, directly north of the Eskay Creek property.

The expectations were likely the result of a combination of rumors, “eye ball” drill core assessments, and extrapolated drilling results from Prime and Stikine’s property to the south.

The price of Adrian Resources, the owner of the claims, looked like the subject of a 2-for-1 stock split after the assay results were released, dropping from over $8 to a low of $3.65 before rebounding to the $4 level.

Prime Resources Group, which together with Stikine Resources is earning a 50% interest in the property, fared better, off only an 1/8 at $6 7/8.

Other issues with landholdings in the immediate area of the north end of the Eskay Creek property also took it on the chin.

Eurus Resources, which has property to the west, dropped from the $2.40 level to a low of $1.35 before rebounding to $1.49 at the close.

Canarc Resources, which has property directly west of the Eskay Creek property and south of the Adrian ground, fell 80 cents over the period to finish at $2.20.

However, with a great deal of drilling yet to be done on the Adrian ground, many watchers have not written off the possibility of more surprises to come.

In holding with the latest craze of releasing visual drill core descriptions with the added bonus of presenting it in “geologist-speak,” Bellex Resources and Quattro Resources released what the companies termed “a significant intersection” on their JW project in the Galore Creek region north of Stewart, B.C.

The intersection was reported as 45 ft. of quartz breccia with chalcopyrite, pyrite, and pyrrhotite with an estimate sulphide content of 25%.

Despite front-page stories of massive sulphide intercepts portending to finds of an Eskay scale, the sulphides did not contain sphalerite or galena, two minerals the average mine owner finds somewhat more rewarding than pyrite. The intersect did, however, contain a visual estimate of 2% chalcopyrite, a copper sulphide, which the companies believe may contain gold.

Unable to wait for actual assay results to prove the incredible riches hidden in the chalcopyrite, the market pushed both issues into the stratosphere, helped along by very low share floats.

Quattro leapt from $3.65 to a high of $10 before settling at $9 5/8 on Aug. 21. Bellex ran to a high of $5 1/8 from 91 cents, settling at $3.70 at the end of our reporting period.

Other stocks in the Galore Creek area were given boosts, including Sarabat Gold, which more than doubled to $1.10 on more than one million shares, and Schellex Gold which rose 12 cents to 47 cents.

Pass Lake, a significant landholder in the Galore Creek area, was strangely unaffected by the excitement, adding a dime to 90 cents.

Another company releasing visual results was Tenajon Resources, reporting visible gold in four holes of a surface program on their SB property near Stewart, B.C. The issue put in a relatively sleepy performance rising 15 cents to the 75 cents level on over 600,000 shares.

The steam seems to be out of Mineral Park Mining as it continued the previous week’s slide for a further drop of 24 cents to finish at 68 cents.

Avondale Resources also added to an extended slide, dropping 30 cents to the 80 cents level.