Vancouver Stock Exchange War Eagle comes back to earth

Another high flyer came down to earth this week in a less than stately fashion — War Eagle Mining. Naming it after a bird of prey seems all too appropriate, especially for the investors who bought the stock at $8 Friday Nov 11 (Remembrance Day). That investment is now worth considerably less; indeed, today the stock traded as low as $2.65 and it could have been worse because short covering helped bolster the market somewhat.

War Eagle hadn’t returned our calls by press time but Eric Gilstead, a company director, insisted yesterday in a Vancouver daily newspaper that they were drilling an open pit target and those were open pit grades. “I know that some of the less sophisticated investors had hyped themselves to a ridiculous degree but we are quite pleased,” he commented.

On a more positive note, Calpine Resources was a heavy trader today (567,000 shares) but it was unchanged at $2.20. Drilling was expected to resume on its Eskay Creek project in northern British Columbia Nov 17. “The camp is all winterized, the boys have agreed to work right through Christmas, and we are not going to stop,”said Murray Pezim, president.

Consolidated Stikine is the company’s joint venture partner in this project which has some real potential. Stikine traded at $5 today. Incidentally, its market capitalization is about half that of Calpine and Eskay is a 50/50 deal. Calpine is reported to be a big buyer of Stikine shares.

Consolidated Boulder Mountain came out of nowhere, jumping 15 to 55 in good volume. At last report, the company was seeking to acquire a property in Chile. Dallas- based Uranium Resources also traded heavily and it was ahead 20 to $3.10. The company recently sold 2.4 million pounds of uranium oxide under contract to a major U.S. utility.

Acheron Resources was also busy but 2 lower at 25 . The company has an agreement in principal to acquire a property near the War Eagle project.

Over our report period Crest Resources jumped 50 to 90 . The company has ground north of Stewart near Magna Ventures ‘Doc property; initial exploration results are said to be favorable. Athabaska Gold, which has reported encouraging results from its Nicholas Lake project north of Yellowknife, was off 14 to 65 .