Vancouver Stock Exchange Trading on Vancouver exchange sets records

Predictions of record volumes and values on the Vancouver Stock Exchange were proven true for the week ended June 5, with the exchange recording a record daily volume on May 31 of 32.2 million shares, worth a record $36.5 million. The exchange’s composite index also reached a year-high, pushing past 798. This record might have been surpassed had Prime Resources Group not been halted for three days. The halt coincided with trading halts of both Stikine Resources and Corona for dissemination of news.

Investor speculation that a higher bid for Stikine would emerge was rewarded when Corona announced a new offer. Not surprisingly, it involved a convoluted paper shuffle which some analysts have valued at over $75 to Stikine shareholders. Market players weren’t so certain, however, and proceeded to bid Stikine down from its high of $72 to $68, with Prime following suit, dropping from a $9 3/8 high to $8 5/8.

Since an assessment of the offer is more qualitative than quantitative, the muddied waters are unlikely to clear unless Placer Dome or a third party comes in with a higher cash offer. The consensus sees this as unlikely.

Other players in the Golden Triangle area north of Stewart, B.C., continued to generate trading activity despite gold’s lacklustre performance. Adrian Resources traded over 3.7 million shares to reach a new high of $4.60 per share before giving up much of its gains to close at $4.10 on June 5. Gold’s downtrend is pushing it to the US$350 level which many gold bugs see as a major area of support.

Eurus Resources also reached a record high, hitting $2.90 before pulling back to $2.30 for a loss of 6 cents on the week.

Canarc Resources, which has ground abutting the Eskay Creek property, was steady at the $2.90 level.

The top volume spot for the week was held by Barkhor Resources which leapt from 87 cents to a high of $1.97 before settling at $1.53 on a total volume of almost 9.7 million shares. The company is drilling on a property near Cranbrook, B.C., with joint venture partner Kokanee Resources.

Kokanee was not left out of the action, with the issue reaching a high of $5 1/8 before dropping back to $4.70. The property involved is being promoted as possibly hosting a “Sullivan-type” deposit.

However, some industry observers remain skeptical, pointing to the promotional nature of these companies, and Cominco’s fruitless search of this area over the past 30 years. Some have already placed their bets, as evidenced by the latest short position report. Barkhor has a reported short position of 134,500 while Kokanee’s sits at 155,200.

As an interesting aside, Goldpac Resources, which has property to the north of Kokanee’s Vine property, remained quiet at the 56 cents level. After years of careful research to find the most geologically prospective target, the company has started drilling a 4,000-ft. hole to intersect stratigraphy associated with the Sullivan.