Vancouver Stock Exchange: Gold’s weakness pulls down market

Wednesday close, Oct 29 The Vancouver market inched lower today as gold tumbled towards the $4 00 level despite conflicting economic signals in the U.S.. Gold’s current weakness has been attributed to a stronger U.S. dollar, the fundamentals of which really haven’t improved all that much in recent weeks. Where it goes from here is anyone’s guess.

Trading volume was moderately active today and by presstime the market index was off one half point to 1409. Houston Metals was a heavy trader with a turnover of 501,000 shares and was 2 cents higher at 83 cents . The company plans to spend $30,000 by year-end on its Owen Lake property near Houst on, B.C.

Skyline was also busy, jumping 5 cents to $2.05, adding to its gain of 60 cents over our report period. The company has been reporting high grade gold assays from an underground exploration program on its Reg claim group in northwestern B.C. A 45-ft width in one crosscut averaged 1.8 oz gold. Park Resources was halted today after gaining 60 cents to $1.10. It was asked by the VSE to explain the trading activity and give some insight into its affairs.

Leading the board on volume over our report period was Nirvana Industries with a turnover of 1.1 million shares. The stock ws 9 cents better at 59 cents . Nirvana has diversified out of oil and gas exploration and now intends to produce and market a gas safety valve.

Goldenbell Resources, which is preparing a bankable feasibility study for its Pine Tree gold property in California, jumped 90 cents to $4.00 and Nevada Goldfields tacked on 50 cents to $10.50. Nevada Goldfields is developing a number of properties including the Sumich mine in Nevada.

Highland-Crow winged 45 cents higher to $4.75 and Teal Minerals climbed 40 cents to $3.30. Drilling started earlier this month at Highland-Crow’s Pickle Crow property in northwestern Ontario. Teal will be mounting an exploration program on its Bear Creek placer gold property in the Yukon by year-end.

New listings for the week included: Pedco Energy (formerly Laredo Petroleums), Alaska Gold Mines, New Impact Resources (formerly Impact Resources), Almaden Resources and Houston Metals (formerly Cater Energy and Bulkley Silver). VSE Short Positions

The VSE reports a short position of 4.1 million shares and warrants as of Oct 17. Larger position include: Quartz Mountain, 375,500; Galactic, 136,400; Happy Resources, 136,400; and Newfields Minerals, 133,000.