Vancouver Stock Exchange Calpine recovers to lead slow week

The market remained stagnant at press time as evidenced by the VSE Index which fell a further 3.37 points to 769.35, off 11.5 points from a week ago.

Brokers say last week’s budget only delivered half the one-two punch necessary to make a serious dent in the deficit and did little to restore investor confidence. Most wanted to see the government cut spending, rather than put the load on taxpayers.

Bridger Resources was among the few resource issues active today, up 15 cents to $1.20. The company has made a deal with a Chilean firm to build a small mill on its La Pepa gold property in Chile in return for a 25% interest in the project.

Pezgold Resources was also ahead today, up 8 cents at 35 cents . This Prime Capital company is set to begin the second phase of a drill program on the Ursus Creek gold property on Vancouver Island where it is earning a 55% interest from Pacific Sentinel Gold. Prime Resources also gained ground at press time, up 25 cents to $3.10.

Prime’s Calpine Resources was once again the most active resource issue over our report period, up 29 cents to $1.75 after losing ground the past few weeks.

The large number of resource issue companies that are moving into non-resource ventures indicates the sad state of the market. The latest to undertake this voluntary rationalization of junior mining are; Forum Beverages, Colima Resources, Trumark Resource Corp., Cordiale Resources and Canuck Resources, among others.

McNeil Industrial gained 3 cents to 93 cents on good volume, however, we gather a non-resource venture is also in the works here. The company says it will continue working its gold property near Lillooet, B.C.

Oneida Resources gained 1 cents to $1.19 after signing a joint venture agreement whereby Placer Dome can acquire a 60% interest in its Mexican Hat gold property in Arizona.

Gold Torch Resources climbed 32 cents to $1.47 after announcing the acquisition of claims in Oregon adjacent to the Grassy Mountain property where Atlas Minerals reports a recent gold discovery. Dragoon Resources has been an active trader here for some time, although it slipped 3 cents to $2. 95 this week. The company says it and partner Greenstone Resources have discovered a “Carlin-type” epithermal gold environment in southeastern British Columbia by using mercury as a pathfinder. This theory has those for and against, but investors appear to be open-minded and intrigued.

Fenway Resources, which plans to become a contract operator of a gold heap leach mining operation in Arizona by providing $1.5 million in financing, picked up 18 cents to $1.04.

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