Vancouver Stock Exchange Reserve figures goost Eskay players

The Vancouver Stock Exchange lost some of its steam during the past week, the composite index off about 10 points at 11 a.m. on April 11, today, for a total loss of about 18 points over the week’s reporting period. Perhaps gold’s recent pullback from US$380 to the US$375 level coupled with Murray Pezim’s difficulties are having an effect. Players may also be watching the weakness in major markets as the investment community continues its death watch on interest rates. Trading in Eskay Creek, players Calpine Resources, Prime Resources Group and Stikine Resources perked up during the week ended April 10. The issues had pulled back somewhat, perhaps in sympathy over the charges against Pezim.

However, following the release of new reserve figures on the Eskay Creek property north of Stewart, B.C., Calpine added almost $1 to $6.50, Prime jumped $0.55 to $5.50 and Stikine rose over $4 to $55. The reserve figure puts probable geological reserves at 3.7 million tons grading 0.56 oz. gold and 15.2 oz. silver per ton and possible geological reserves at 1.9 million tons grading 0.25 oz. gold and 8.2 oz. silver. (A 0.04 oz. gold per ton cutoff is used.)

Athena Gold (VSE) was an active trader during the week, rising more than $1 per share to the $2.90 level. After an extended delay, the company finally received confirmation from Placer Dome giving the go-ahead to a joint venture on the Talapoosa gold property in western Nevada. It would appear that Placer was satisfied with the results of their recently completed work program designed to confirm Athena’s findings.

With takeover rumors becoming stale, some of the glow came off Continental Gold during the period, the issue shedding $2 to $12.75. The company contends that it is not in formal talks with anyone.

Akiko-Lori Gold continues to retrace its steps as investors sober up over prospects at the Springpole bet being explored with Noranda in northern Ontario. The issue lost almost $1 dropping from $5.50 to $4.60, off considerably from the high of $7 reached earlier this year. Prime Resources Group recently announced it had bailed out of the stock, selling its 23% interest, citing the fact that it had enough companies and wanted to concentrate on the Stikine Arch area north of Stewart, B.C.

Dayton Development continues to be active at the $3.20 level as investors watch the company’s progress at the Andacollo gold property in Chile. The prospects of the property have fuelled a steady rise in the issue from a 1990 low of $1.60 per share. A revised reserve estimate on the deposit is expected shortly.

Precious Metals is seeing some action over the week, trading 248,000 shares and reaching a high of 53 cents before closing at 49 cents, an increase of 10 cents over the week. The activity appears to be tied to drilling on the company’s Johnson and Rainbow Island claims northwest of Thunder Bay, Ont. The company reports to have intersected massive sulphides over considerable widths.