Vancouver Stock Exchange Goldbelt plans exploration work

The VSE resource and composite indices remained little changed over the week ended April 9. The resource index posted a 4-point drop to 570.34 while the composite index remained virtually unchanged at the 580 level. A review of March trading activity showed the market continued a recovery trend started in February with a 4% increase in trading volume and a 6% increase in share value. Volume averaged 16.1 million shares per day in March.

Losers outnumbered winners during the month, however, with 89 issues posting new highs and 170 posting new lows.

Gold managed to climb back over the US$360-per-oz. mark, ending the period up about $7 at US$364.

Goldbelt Mines topped the most active list over the week, trading more than 1.8 million shares. The issue edged up 2 cents to finish at 40 cents. Exploration budgets for properties in the Golden Triangle area of northwestern British Columbia in which the company has either direct or indirect interest will total $2.5 million in the coming season.

A merger proposal between El Condor Resources and Covenant Resources gave both issues a boost. El Condor added 35 cents to finish at $2.25 while Covenant gained 21 cents to close at $2.10. The merger, proposed on a 1-for-1 basis, brings former Continental Gold principals Robert Hunter and Robert Dickinson on board.

The two men took over management of Taseko Mines earlier this year, which resulted in a doubling of the stock to the $2 level. Rumors of a settlement between Taseko and Cominco in the dispute over the ownership of the Fish Lake deposit near Clinton, B.C., continue to help the issue. Taseko closed up 65 cents on the week at $3.65.

Hunter and Dickinson’s Pacific Sentinel Gold announced it was dropping its option to acquire a 50% interest in the Golden West project in Arizona following a disappointing drilling program. The issue reached a high of $4.45 earlier this year on anticipation of drilling results, only to drop to a low of $1.50 following the release of results. Pacific Sentinel added 22 cents over the week, finishing at $1.85.

Legal wrangling over the ownership of the rich Eskay Creek property in northwestern British Columbia did not seem to hurt 50% owner Prime Resources Group. Tagish Resources is currently attempting to block the issuance of a mining lease for the property by petitioning an injunction in the Supreme Court of British Columbia. If successful, it would delay development of the property.

Prime ended the period unchanged at the $4.50 cents level. Corona recently exercised warrants to purchase 2.95 million shares of Prime at $5.25 each, netting the company about $15.5 million. Corona now owns about 22.61 million shares of company’s 46.85 million shares.

The involvement of Cannelle Exploration in an environmental project in the Soviet Union helped the issue with a 43 cents boost to $1.35.

The resignation of the president and a director of Chase Resource over trading irregularities continued to haunt the company during the reporting period. The issue closed down 50 cents at $2.50. The company is continuing with its plans to develop its Taysan copper-gold project in the Philippines.