Vancouver Stock Exchange (November 18, 1991)

Trading activity on the VSE appeared somewhat volatile during the report period ended at noon today, Nov. 13, with both the composite and resource indices losing ground. A sell-off in some speculative resource issues triggered the decline in the resource index which at presstime was down 7.45 points at 508.38. The composite index lost a more modest 2.74 points at 572.00.

The most active issue during the week was Vangold Resources, a junior aiming to bring its high-grade Iron Colt gold vein near Rossland, B.C., into production. The issue gained 11 cents to reach 65 cents.

Coral Gold was also active on good volume, posting a gain of 26 cents to reach 50 cents. The junior released details of the 1992 exploration program being planned by Amax Gold for the company’s Robertson property 30 miles, from Battle Mountain, Nev. This work will follow up a number of targets, including an area where previous drilling returned 125 ft. averaging 0.11 oz. gold per ton, including 40 ft. of 0.23 oz.

Of particular interest to west-coast market watchers is Amax’s plan to drill two exploration holes on the “Gold Acres North” target near Placer Dome’s large, open pit Gold Acre mine. Rumor has it that Placer intersected high-grade gold over considerable thickness (in excess of 100 ft. grading better than 1 oz. gold) on its property, which is part of the Cortez joint venture.

The rumor is being given some credence in light of Placer’s recent decision to increase its interest in the Cortez joint venture to 60% from 43%. In its latest quarterly report, the major announced that ongoing exploration drilling identified new gold mineralization of about nine million tons grading 0.19 oz., including about 5.7 million tons grading 0.27 oz. suitable for carbon-in-leach recovery. The mineralization is open in two directions, and Coral Gold is of the view that the mineralized trend may continue on its ground being explored by Amax.

Dessir Resources announced more drilling results from its Gibbs mine property in California. The results were impressive, but local analysts remain skeptical after attending a company presentation which was long on projection but short on technical details with which to assess the project, such as cross-sections and individual assays. The primary concern is that multi-ounce, high-grade coarse gold mineralization in the vein-type deposit is being averaged over long sample intervals, thus causing “nugget effect.” Dessir shed 45 cents to settle at $2.30 in moderate trading. Companies active on the Unuk joint venture, last month’s high-flier, also lost ground. A recent drill program on the northwestern British Columbia gold project returned mixed results. Cove Resources lost 3 cents to settle at 11 cents; Springer Resources was down 4 cents at 17 cents.

Cusac Industries gained 36 cents to reach $1.36 after announcing plans to boost its interest in the Table Mountain gold project, a former producer near Cassiar, B.C., by acquiring Total Energold’s interest. Cusac is also looking to acquire the mill and related project facilities.