Vancouver Stock Exchange (February 17, 1992)

The VSE indices posted strong gains during the week ended Feb. 11, with the composite index adding 21.43 points to finish at 653.8 and the resource index bouncing off the 500 level to close up by more than 23 points at 523.36. The effects of Placer Dome’s announcement of a writedown and a decision not to proceed with development of a mine at its Mt. Milligan property north of Prince George, B.C., appears to have blown over.

Following the previous week’s drubbing to a low of $8.75, Taseko Mines posted an impressive recovery, closing up near its 52-week high of $12.25. Taseko is proceeding with development of its 600-million-ton Fish Lake porphyry copper-gold deposit southwest of Williams Lake, B.C., and is planning to raise in the order of $10 million to fund additional drilling and engineering work for 1992.

El Condor Resources, which is also developing a large porphyry copper-gold deposit, managed a nice bounce, closing up 75 cents at $4.50. The company’s 60% owned South Kemess project is estimated to contain preliminary reserves totalling 252 million tons grading 0.23% copper and 0.019 oz. gold per ton. The company’s 40% joint venture partner, St. Philips Resources, managed a more modest gain of 10 cents to close at $1.95.

Goldbelt Resources was a hot issue, trading more than 4.2 million shares before finishing at $1.19 for a gain of 59 cents. The company recently announced a private placement of 1.25 million units at $1 per unit; the proceeds, along with other funds, will be used for feasibility work on the company’s Russian interests. Late last year Goldbelt acquired options on a large gold tailings project, as well as what is described as “the sixth largest known copper deposit in the world” with estimated reserves of 950 million tons grading 1.37% copper.

The first hole in the deep drilling program on the northern California Spanish Mine property under option to Farallon Resources failed to intersect base metal mineralization, pushing the issue to a low of 60 cents before it recovered to 70 cents for a net loss of 16 cents. Farallon is testing a theory that the former gold mine hosts a large polymetallic, sediment-hosted, massive sulphide deposit.

Although no base metals were present, the Farallon hole is reported to have intersected 112 ft. of cherty, pyritic sediments at a depth of more than 2,000 ft., confirming the presence of a large exhalative system. Drilling is continuing on the 6-hole program in a search for a mineralized core. Dia Met Minerals settled back, slipping $1.50 to finish at $7.50. The company is not expected to release the results of a bulk sample from its diamond exploration joint venture with BHP-Utah mines in the Northwest Territories until sometime in the spring.

Canarc Resource managed a gain of 20 cents, finishing at $1.28. Suntac Minerals and Rembrandt Gold Mines, two companies controlled by Canarc, recently announced a new reserve estimate of 2.2 million tons grading 0.43 oz. gold for the Polaris-Taku property in northern British Columbia.