Vancouver Stock Exchange (August 26, 1991)

Uncertainty surrounding recent events in the Soviet Union sent VSE indices on a wild ride over the reporting period ended Aug. 20.

The composite index touched a low of 551.61 before rebounding to close at 555.44 for a loss of 7.26 points. The resource index fared better, finishing up 7.60 points at 536.28 after touching a low of 526.38. Gold put in a dismal price performance on news of the Soviet coup.

Dragoon Resources took top trading spot with more than one million shares traded. The issue closed at 35 cents for a gain of 19 cents. A company spokesman noted that selling pressure from free trading flow-through stock had pushed the issue to an unreasonably low level. A cross of 751,666 shares at 15 cents cleaned up the remaining flow-through overhang and the stock rebounded as a result.

Galico Resources continued a prolonged slide, dropping an additional 29 cents to close at 76 cents. No results have been released from recent drilling on the company’s Metla Creek property in northwestern British Columbia. Rumors of an imminent offer from Amax Gold for all the shares of Fairbanks Gold, at a price of $9 per share, left the issue unchanged at the $7.50 level. Fairbanks has stated publicly that it is in exclusive negotiations with a major mining company but has offered no further details. The share price of Columbia Gold Mines continued to erode, falling 17 cents to close at 59 cents. Eurus Resource, which is earning a 50% interest in Columbia’s Spectrum property, dropped 33 cents to finish at 91 cents. The companies expect to complete a first-phase $1-million program by the end of August and investors appear to be skeptical that Eurus will proceed with its earn-in on the property which is in northwestern British Columbia. Eurus must spend a total of $8 million to earn the 50% interest.

War Eagle Mining took a dive, plunging 55 cents on almost 700,000 shares to close at $1.25. The company is exploring its War Eagle Mountain property in southwestern Idaho where it has intersected a number of high-grade gold zones. Prime Resources Group recorded a gain of 40 cents to $4.15. The company is best known for its 50% interest in the rich Eskay Creek property, north of Stewart, B.C. Prime and its controlling shareholder, International Corona, are rumored to be back at the bargaining table with Placer Dome with respect to development of the Eskay Creek gold mining project.