Vancouver Stock Exchange Calpine, War Eagle sustain interest

Although trading volumes on the VSE have picked up dramatically in recent weeks due to several new discoveries, public opionion polls suggesting the Liberals might win the next election and scrap the free trade agreement put a damper on any hope of a sustained rally here.

This new boost in economic uncertainty is blamed for causing already nervous investors to retreat to the sidelines, at least until after the election. At press time the VSE Index had dropped 2.28 points to 849.15. Decliners led advancers, 168 to 134, with 484 issues unchanged. Uranium Resources, an integrated uranium exploration and production company specializing in in situ solution mining, gained a further 30 to $2.90, while Expeditor Resource Group, involved in a project adjacent to the War Eagle claims in Idaho, gained 4 to 48 .

Much of the market activity over our report period was sparked by the impressive widths and grades of gold mineralization released recently by Calpine Resources from the Eskay Creek project in northwestern British Columbia. Calpine is earning a 50% interest in the project from Consolidated Stikine Silver and is said to be so encouraged by results to date that it is re-mobilizing to drill throughout the winter. Although Calpine lost 4 to $1.62 (at press time it was back up to $1.78) in heavy trading, Consolidated Stikine gained $1.05 to $4.10 (it has far less shares outstanding).

Calpine also has an option to earn an additional 162/3% interest (it already owns 50%) in Canarc Resources’ 50%-owned GNC property which completely surrounds the Eskay Creek project (and which is said to include a fraction claim immediately adjacent to the discovery area). Canarc gained 30 to $1.05.

Investors are anxiously awaiting assay results on eight drill holes from the War Eagle Mountain property in Idaho owned by War Eagle Mining. Meanwhile, the issue gained 35 to $4.70, helped along by a recent private placement from a private company formed by Robert and Eric Friedland to fund mining companies. (At press time the issue reached $5.62.)

Acheron Resources, which says it has a 50% interest in favorable ground immediately to the east of the War Eagle claims (with Expeditor Resource Group), gained 17 to 33 .

Athabaska Resources gained 27 to 79 after releasing significant assays from the Nicholas Lake property about 60 miles north of Yellowknife, N.W.T., where it is earning a 60% interest from Chevron Minerals. The 13 best intersections averaged 0.70 oz gold per ton over an average true width of 5.7 ft. James Kermeen, president, says in general results improve markedly with depth, suggesting good tonnage potential. The property is accessible by winter road and more drilling is planned.

New Beginnings Resources gained 38 to 76 , while Noront Resources climbed 33 to $1.58. Both companies are active in the Mishibishu Lake area of Ontario.