STOCK MARKETS — Low indexes cancel out near-record earnings

Year-to-date financings on the Vancouver Stock Exchange reached $1.1 billion, the highest level since the bull market of 1987, which raised $1.4 billion.

Both the composite and resource indexes reached 52-week lows during the report period ended Nov. 8. The composite index lost 18.05 points to close at 817.95, while the resource index slipped 23.06 points to finish at 1,333.42. Adrian Resources, benefiting from news of solid infill drill results from its Petaquilla property in Panama and an agreement reached with Toronto-listed Teck, climbed 60 cents to close at $4.40. Teck can acquire half of Adrian’s 52% interest in the Petaquilla property by funding a final feasibility study and buying, within six months, up to 1.5 million shares of Adrian at an average cost not to exceed $5.50 per share. Once a production decision is made, Teck must buy a further 2 million shares, not to exceed more than $10 million in value or represent more than 9.9% of the issued shares. Toronto-listed Metall Mining’s interest in the property remains 48%. A preliminary feasibility study prepared by Kilborn Engineering (for two deposits) estimated the minable reserves using a 0.19% copper-equivalent cutoff at 495 million tonnes grading 0.53% copper and 0.124 grams gold per tonne.

Pacific Falcon Resources climbed to a new high of $3.05, an increase of 66 cents. A preliminary drilling program is planned to define the Guinaoang copper-gold porphyry deposit in the Philippines. Geologic reserves using a 0.4% copper cutoff are estimated at 166 million tonnes averaging 0.52% copper and 0.54 grams gold.

Upon news of an option agreement with Cominecs Compania Minera Ecuatoriana to explore and acquire 56 concessions throughout Ecuador, Jersey Goldfields increased 70 cents to close at $1.86.

Buyers took a shine to Major General Resources, bidding the issue up 20 cents to 60 cents on good volume. The company added a second drill rig to its Rendell-Jackman property in Newfoundland, where recent drilling returned an 8.4-metre intersection grading 6.22% zinc, 0.8% copper, 1.38% lead, 46.5 grams silver and 0.28 grams gold per tonne. Three drill holes are planned in the immediate vicinity of the intersection and drilling is continuing in the area around the Hammerdown gold deposit.

The objective of the Hammerdown drilling is to expand the current resource, which is estimated at about 385,000 tonnes grading 16.4 grams gold. International Taurus Resources renewed its slide after reporting further assay results from drilling on its Taurus gold property; the issue fell 59 cents to $2.01. The company is in the process of drilling off what it hopes is an economic bulk-tonnage zone of gold mineralization. Grades range from 0.41 to 1.23 grams gold, while widths vary from 4.3 up to 37 metres. The company estimates the drill-indicated resource at 13.6 million tonnes grading 1.2 grams gold. Very little metallurgical work has been done on the mineralization, but the gold’s association with massive pyrite is not encouraging for the project’s heap-leach potential.

Hera Resources, which owns 2.3 million shares of International Taurus, slipped 20 cents to close at $1.70.

A new resource estimate for the Diablillos property, in Argentina, was not much help to Pacific Rim Mining, which slipped a dime to 50 cents. The company estimates total reserves at 5.1 million tonnes grading 2.07 grams gold, including 2.4 million proven tonnes in the Oculto zone, which remains open to expansion in all directions. The company is re-evaluating all five zones on the property and is planning a 4,000-metre drill program. Contrary to a report in the Vancouver stock market column of Nov. 7, 1994, Sway Resources (VSE) does not plan to option a 50% interest in its Franklin camp property in British Columbia to Marum Resources.

Marum can earn a 50% interest in Sway’s 49th Parallel diamond property.