Vancouver Stock Exchange (September 09, 1991)

Vancouver’s summer is already the wettest on record, but the rain clouds can’t be blamed for dampening trading activity on the VSE. Market interest has remained at a low ebb for much of this year, with declining metal prices, particularly for gold, doing little to trigger interest in junior mining issues.

At presstime on Sept. 4, the resource index stood at 554 points, off a modest 3.5 points from a week ago. The composite index managed to gain 2.35 points to 566.06.

War Eagle Mining managed to buck the downward trend, with the issue posting a gain of 37 cents to reach $1.56. The company announced the discovery of two gold zones during a first-phase exploration program on the La Blanca property in Chihuahua, Mexico. The company says the project has “inferred potential” for a 30-million-ton open pit, heap leach mine.

Taseko Mines remained surprisingly flat at $5.37 after releasing assay results from the first hole drilled on the Fish Lake copper-gold deposit north of Lillooet, B.C. The hole intersected 2,714 ft. grading 0.37% copper and 0.022 oz. gold per ton, but low gold and copper prices appear to have put a damper on the excitement that would likely have met these results in better times.

Taseko’s management team includes Bob Hunter and Bob Dickinson of Continental Gold fame. The two are also directors of El Condor Resources, which managed to pick up 70 cents to reach $3.80. El Condor is involved in the Kemess copper-gold projects in the Toodoggone district of northwestern British Columbia.

Interest in the Kemess projects appears to have picked up steam after Rio Algom exercised its option to buy 60,000 shares at $2 per share of St. Philips Resources, which has a 40% interest in the South Kemess property. The funds will be used to complete the junior’s portion of a $1.8-million program currently under way. St. Philips moved up 45 cents to $1.70. Cusac Industries climbed 17 cents to 72 cents after announcing that it believes production is “imminent” from the Bain vein on Total Energold’s Cassiar gold mine in northwestern British Columbia. Cusac has a 30% net profits interest in the portion of the mine property that hosts the Bain vein. Production is suspended at the mine, but Cusac said this year’s drilling program on the Bain vein discovery outlined a well-mineralized structure of more than 2,800 ft., with a number of high-grade shoots along the structure.

Management of Prime Equities is seeking to consolidate the company’s share capital on a 10-for-1 basis. Within the next several months, the company will also be seeking listings on The Toronto Stock Exchange and NASDAQ in order to increase Prime’s exposure. The issued gained a modest four cents to settle at 46 cents.

Murray Pezim came out punching in response to press reports that he is abandoning the VSE, and spending too much time on his football team. “I am not leaving the VSE,” Pezim said. “To say I am moving to the U.S. to skirt a possible trading ban imposed by the British Columbia Securities Commission is utter nonsense.”

As for the football team, Pezim recently sold a 49% interest to Nick Mileti who is taking over day-to-day operations of the club. The “Pez” says he is looking forward to working with the investment community in Vancouver, Toronto and the U.S., “to make 1992 a great year.”