Vancouver Stock Exchange (November 25, 1991)

Trading activity followed the lead of major markets in the east, with both local indices losing ground during the week ended Nov. 19. The composite index dropped by 18.38 points to finish at 556.36, while the resource index edged closer to the 500 level with a drop of 6.32 points to 509.51.

A move in bullion prices back above the US$360 level to US$364 per oz. left gold bugs wondering if the increase is related to bullish sentiment for the yellow metal, or simply reflects the recent weakness of the U.S. dollar relative to the Japanese yen and German mark.

War Eagle Mining topped the most-active list, trading more than 1.5 million shares. The issue gained 27 cents, closing at $2.27. The company is currently drilling on its La Blanca property in Mexico. Sampling from a number of test pits on the property is reported to have returned average grades of 9.67 oz. silver and 0.048 oz. gold per ton. Assays from the first three drill holes, spaced about 500 ft. apart, are expected shortly.

A report estimating reserves for the Gibbs claims at 560,000 tons grading 0.92 oz. gold did not seem to help Dessir Resources, which slipped 15 cents to $2.15. The company recently completed its 50% earn-in on the California property and will issue 2.8 million shares to A.T.& E. Mining on exchange approval.

Chase Resources took a hit, dropping 65 cents to $3.75. The company is developing a large porphyry copper-gold deposit in the Philippines. Chase can purchase a 59.9% interest in the property by paying US$1 million by May 10, 1992.

Drilling on the Crown Jewel property in northwestern Washington state returned a number of excellent intersections for owner Crown Resources, including 30 ft. of 1.09 oz. gold, 15 ft. of 1.21 oz. and 10 ft. grading better than 2 oz. Battle Mountain Gold, operator of the project, may earn a 51% interest by bringing the property into production at a minimum rate of 3,000 tons per day. Crown finished up a quarter at $9.25.

Dia Met Minerals settled at $4.30. The company appears to be generating some excitement over its Point Lake diamond exploration joint venture with BHP-Utah Mines in the Northwest Territories. A 59-kg sample of kimberlite is reported to have yielded 81 small diamonds measuring less than two millimetres in diameter. A 180-tonne bulk sample is planned for this winter. An increase in estimated reserves and grade at the Golden Quail property in California left Golden Hemlock Explorations unchanged at the $1.75 level. The company is earning a 50% interest in the property from Golden Quail Resources, which closed at 73 cents for a loss of 16 cents. An in-house reserve estimate of 2.9 million tons grading 0.12 oz. gold was released. Further drilling is planned.

Athlone Resources was also active during the period, trading more than 870,000 shares to finish unchanged at 23 cents. The company recently reached an agreement to acquire 51 mining claims adjoining Fort Knox Gold’s property in Fawcett Twp., Ont.