Vancouver Stock Exchange Kokanee makes gains

Economists have been warning that a recession is just around the corner for at least the past several years. This year, with increasing evidence that the economy is indeed slowing down, the talk is being taken more seriously. Base metal prices have weakened considerably in the past several months as a result of a real or perceived economic downturn which, if sustained, suggests not only lower profits for the majors in the coming year, but less money to spend on exploration or on deals with cash-crunched junior companies.

Although other economists argue there is still too much momentum in the economy for a full-fledged recession, the uncertainty makes for jittery investors. North American equity markets managed to weather a recent outbreak largely due to bargain hunters and gold prices still above the US$400 threshold.

Trading activity on the Vancouver Stock Exchange appears to be in the semi-doldrums. The VSE index was off 3.55 points at 707.89 at noon today, Jan. 17. That represents a loss of 9.27 points from a week ago.

Kokanee Explorations was the most active issue today, up 15 cents at $2.10 after making good gains in the past week. The company is excited about recent developments on its Vine property near Cranbrook, B.C., particularly recent drilling showing bedded sulphide bands “equivalent stratigraphically” to Cominco’s Sullivan mine. In addition, the company says another hole intersected 12-13 ft. of semi-massive to massive sulphides at a vertical depth of 800-900 ft. on its Vine vein, showing depth potential on this “St. Eugene-type” target. The Vine property is optioned from Cominco which has a back-in right.

The Prime group of companies were busy for the week ended Jan. 16. Prime Resources held at $2.25, but Calpine Resources lost a nickel to $4.90 and Adrian Resources lost 15 cents to $1.23.

Silver Princess Resources managed to gain a nickel to 50 cents even after it was announced that claim inspection reports recommended the cancellation of the DUP 1-3 claims staked by Paul Dupras and optioned 50% to Adrian Resources. Silver Princess says the reports were “unduly critical” of the staking attempt by Dupras under tough winter conditions and it intends to support Dupras “in whatever is necessary to ensure that title is retained on the DUP 1-3.” The claims are adjacent to Calpine’s Eskay Creek project north of Stewart, B.C.

Chile is reported to be set to join the top 10 gold producers in the world, and this likely accounts for recent interest in Bridger Resources which moved up 34 cents to $1.60. The company says its 65% owned Chilean subsidiary recently commissioned a mill at the La Pepa gold property. By mid-year, Bridger expects to reach design capacity of 300 tonnes per day.

News that Dayton Developments has made its final payment to Chevron for 100% of the Andacollo project in Chile boosted that company’s share price 48 cents to $1.95. The project is at the prefeasibility stage. But the company recently raised $2.2 million to continue drilling and complete a bankable feasibility study. Dayton hopes to prove up an open pit, heap leach gold deposit.

Miramar Mining slipped 15 cents to $3.50. The company has been among the more active issues in recent weeks largely due to speculation surrounding Newmont Exploration’s work program on Miramar’s 49% owned Bruner (Paymaster) gold property in Nevada.

Some recent drill results, from fair to good, were not as spectacular as some investors had hoped.