Vancouver Stock Exchange Quiet market activity on west coast

Things are mighty slow in Vancouver and the short-term prognosis suggests more of the same. Interest rate fears, lower gold prices, and month-end selling are all contributing to the depressed market conditions. However, with many seasonal exploration programs under way, August and September should be the months to watch. The Vancouver market can turn around overnight and it just takes a decent gold discovery to precipitate a reversal.

By press time the VSE index was ahead 1.5 points to 1053.9, reversing yesterday’s loss of 6.2 points on a turnover of 13 million shares. Among the more active issues today was Perron Gold Mines which jumped 7 cents to 67 cents . The company’s Sleeping Giant mine has produced 3,984 oz gold since May 17. Perron and D’Or Val Mines, another Hughes/Lang company, are planning to amalgamate.

Rich Coast Sulphur was active today but unchanged at $1.80. In a recent press release, the company denied rumors linking it to “any illegal and wholly unauthorized transactions.” The denial follows an article published in a Canadian financial publication linking Rich Coast to illegal stock sales operations in Costa Rica and elsewhere.

Windarra Minerals tumbled 2 cents to $1.43 and Hudson Resources was off a dime to 7 cents . Windarra has a 25% interest in the Magnacon gold property in Ontario’s Mishibishu Lake area and Hemlo Gold as a major shareholder. Hudson has an 18% carried interest in a producing placer gold property near Atlin, B.C.

Over our report period Athena Gold shot up 50 cents to $1.70. The company recently completed a phase 1 exploration program on its Talapoosa gold property in western Nevada. Mineable reserves are being calculated and Athena is aiming for production on a heap leach basis in early 1989. American Reserve Mining, which has been exploring the old Paymaster mine near Timmins, Ont., closed the week 40 cents stronger at $2.75.

Destiny Resources, one of Murray Pezim’s companies, was the volume leader this week with a turnover of 1.4 million shares for a 21 cents rise to 69 cents . The company has a gold property in the Timmins, Ont., area which it has been drilling. “The Pez” recently took a young bride and seems to have survived the event in good form.