Vancouver Stock Exchange Gold stocks took a tumble

There’s nothing quite like the force of gravity to settle down a market. Proving once again that what goes up always comes down. Vancouver gold stocks tumbled sharply during the week reflecting profit taking and brokerage month end in Vancouver.

With the Canadian dollar under pressure on exchange markets, interest rates here could be edging higher which might put a real damper on the stock market. Also stocks have generally outpaced gold prices and there’s some question how much higher they can go. In any event, with all that gold production coming on stream it’s probably best to stick with low cost producers.

Trading today was moderate with Newfield Minerals posting one of the largest increases, a $1.20 gain to $4.70. The company just announced drill results from its Arseno property near Pickle Lake which included several impressive zinc- lead-silver intersections with some gold. Mineta Resources, which is expecting drill results from its Casa Berardi property any day now, was 10 cents stronger at 85 cents while Murray Pezim’s International Phoenix was ahead 5 cents to $2. Canadian Premium and Mahogany edged 15 cents and 5 cents higher respectively to $3.30 and $3.10. They have interests in Saskatchewan’s La Ronge area and are merging.

On the list of casualties this week was Technigen Platinum which plummeted $2 to $12.25. The vse is attempting to clarify previous disclosures made by Technigen relating to a golf simulator it is marketing. The company is also involved in a major platinum exploration program.

Golden North, whose Hedley, B.C. gold property is said to host a continuation of the Mascot orebody, dropped $1.25 to $7.50 and Pioneer Metals was $1 lower at $9.75. Pioneer is developing a gold mine near Flin Flon, Man. Hycroft Resources, which has heap leach operations in Nevada, tumbled 75 cents to $10.25 and Nor-Quest, which is involved in a hostile takeover for Northair, slumped 65 cents to $4.60.

Alotta Resources, a company run by Bert Applegath which among other things has property near Teck’s Lamaque mine in northwestern Quebec, was the volume leader with just over 2 million shares. The stock was up 11 cents to 96 cents . Balsam Resources, which was recently consolidated three-for-one and its name changed from Southern Lights, recorded a turnover of about 1.1 million shares for a 44 cents gain to 90 cents .