Vancouver Stock Exchange Akiko-Lori shares bounce back

With gold and major markets in the doldrums, the Vancouver Stock Exchange was no different as the composite index tracked sideways at the 750-level for the week ended May 1. The index was off marginally at 749.45 at 11 a.m., Wednesday, May 2. The Exchange’s bright spot continues to be the rich Eskay Creek deposit north of Stewart, B.C.

Prime Resources Group, 50% owner of the property, released assay results from stepout hole 90-489. The hole, reported after coring to contain 1-2% visible gold proved on assay to contain 14.44 oz. gold per ton, 71.40 oz. silver, 9.03% lead, 26.23% zinc, and 3.53% copper over a 26.2-ft. interval. Although not as spectacular as some were predicting, given the visible assessment of the core, it would be somewhat difficult to call this hole a disappointment.

There is no doubt that holders of the Adrian Resources series A warrants were disappointed when the company announced that holders would be forced to exercise their warrants by June 4. Two warrants plus $1.98 allow the holder to receive one share of Adrian. Warrant holders had hoped to play the warrants through the summer drilling season. This expectation was reflected in a 27% premium on the warrants, subsequently dropped to about 9% after the announcement.

Put in dollar terms, while the common stock remained virtually unchanged, the warrants dropped from the 75 cents range to about 48 cents.

One warrant holder which probably wasn’t disappointed is Prime Resources, which recently increased its stake in Adrian from 11% to over 15%. One might speculate that the company could use the redemption to increase its stake further.

Stikine Resources’ drop in leverage to the Eskay Creek property as a result of the proposed merger with Prime into a new company owned largely by Corona has been evident in the past two weeks. Prime’s increase in price from the $6 range to about $7.50 (or about plus 25%) is in stark contrast to Stikine’s performance, sitting dead at the $56 level.

Although rumors still circulate regarding a follow-up offer to Corona’s, the lack of enthusiasm for Stikine shows that the market is not taking them seriously.

Crown Resources took a bit of a dip during the week, losing $1 per share to $7. The company recently announced that it may acquire a number of assets in Nevada, including a 700-ton-per-day mill from Nevada Goldfields for total consideration of about US$4 million.

Oneida Resources hit a 52-week low of 45 cents before settling at 53 cents despite positive reports by the company on its Mexican Hat property in Cochise Cty., Ariz.

Akiko-Lori Gold bounced nicely from its recent $7 to $3.60-per-share free fall, finishing the week at $5 1/8.