STOCK MARKETS — Summer slowdown continues on western market

With little news from the diamond exploration front and gold drifting just above the US$370 level, market action on the Vancouver Stock Exchange remained relatively quiet.

For the report period ended Aug. 24, the VSE composite index edged up eight points to 978.23 while the resource index put in a stronger showing, with a 34.79-point rise to 1,339.65.

Speculation that Kennecott will proceed with a minimum 5,000-ton bulk-sampling program this winter at the DHK group’s diamond discovery in the Northwest Territories likely helped group members Dentonia Resources, Kettle River Resources and Alberta-listed Horseshoe Gold Mining.

Dentonia added $1.55 to close at $6 while Kettle River closed up $2 at $11. Meanwhile, Horseshoe Gold gained $1.53 to finish at $5.63.

Commonwealth Resources, which has rights to an interest in the project, jumped 16 cents to close at 96 cents.

Despite a lacklustre gold market, Prime Resources Group continued to gain ground, adding 62 cents to close at $6.75. Development is proceeding at the company’s 50%-owned Eskay Creek project in northwestern British Columbia while its 40%-owned Snip mine continues to outpace expectations. Crystallex International is expanding its property holdings in the Kilometre 88 region of Venezuela with the acquisition of an option on three more properties. The issue added 87 cents to finish at $8.50.

The share exchange ratio has been set for the merger of Cazador Exploration and Toronto-listed Granduc Mines. Each share of Granduc will be exchanged for one share in the new company while one share of Cazador will be exchanged for 0.6 shares of the new company. Cazador lost 20 cents on the news, closing at 80 cents, while Granduc remained little changed at 95 cents. Miramar Mining continued to gain ground, closing at $5.75, up 63 cents. The company completed a $45-million financing and is proceeding with the purchase of the Con gold mine in the Northwest Territories at a cost of US$25 million, plus a proposed 2.5 million shares to Red Lion Management. Red Lion is owned by Miramar President Walter Berukoff.

At El Dorado, a project in El Salvador, drilling returned a 36.7-ft. intersection in the first hole grading 0.51 oz. gold and 3.94 oz. silver per ton. Mirage Resource has a 50% interest while Toronto-listed Bethlehem Resources and Dejour Mines each have 25%.

Mirage closed up 27 cents at $1.52 while Bethlehem and Dejour remained unchanged at 53 cents and 20 cents respectively.

Amax Gold plans to proceed with a third phase of exploration at the Robertson gold project in Crescent Valley, Nev. The company can earn a 60% interest in the project from Coral Gold by completing a bankable feasibility study. At the end of 1992, Amax had outlined an estimated geological resource of 20 million tons grading 0.036 oz. gold per ton in several deposits. Coral added 14 cents during the week to close at $1.35.

Island Arc Resources added 18 cents to close at $1.23, with the recent acquisition of a 15% interest in a diamond exploration project in the Wimapedi Lake area of Manitoba. The company, along with 35% partner Formosa Resources, has also signed an agreement with Rio Algom on the Lockwood massive sulphide property in Washington state.

Joint-venture partners Southwestern Gold and Vector Industries International have started drilling on the Rio Sono property in Brazil. The companies can earn a 60% interest in the project and the drilling will test several diamond-bearing alluvial targets.

Southwestern Gold closed up 55 cents at $4.95 while Vector added 22 cents to finish at 70 cents.

SRR Mercantile added 27 cents to close at 78 cents after signing a letter of intent to acquire up to 75% of the Ikungu gold property in Tanzania. Prior to the Second World War, an estimated 40,000 tons grading 0.5 oz. gold were mined from two structures on the property, but little exploration has been done since.