Vancouver Stock Exchange Bulls favor the yellow metal

Despite continued strength in gold bullion prices, the Vancouver Exchange followed the New York and Toronto markets’ general direction, dropping 15.34 points to finish the period ended Feb. 20 at 725.02. The price of gold approached the US$420-level with the bulls continuing to favor the yellow metal, citing rising tensions over social and political changes in Eastern Europe as well as the uncertainties hanging over Asian and European economies.

But there were a few bright spots.

Kokanee Explorations was the most active stock during the period, leaping $1.29 per share to $3.60 on more than 1.8 million shares. The excitement is the result of drilling on two of the company’s properties near Cranbrook, B.C. The company noted that deep drilling on the Vine property had intersected 32 ft. of massive sulphides, plus a further 100-ft. intersection of mineralization containing bands of massive sulphides. Speculation has it that the property hosts a Sullivan- like deposit.

The company is also awaiting assays on a drill hole on their 100% owned Cash property, where drilling intersected 20 ft. of massive sulphides. Kokanee noted all the company’s warrants, which expired on Feb. 20, were exercised, and there is now more than $1 million in the treasury.

Taking second place in trading activity was Suntac Minerals, trading over 1.1 million shares. The stock stayed in a narrow trading range of 65-75cents as investors await further results from the company’s Polaris-Taku project in northwestern British Columbia. A second rig has been brought on to the property and Prime Resources Group, the manager, indicates drilling results have been visually excellent with further assay results expected shortly.

Calpine Resources was down over the week, dropping 25cents to close at $5 per share on volume of about 350,000 shares. The drop came despite the announcement of high-grade reserve figures for their Eskay Creek property near Stewart, B.C. Probable geological reserves were reported at 1.1 million tons grading 1.66 oz. gold and 43.3 oz. silver per ton plus 2.1% lead and 5.2% zinc. Although the reserve’s gross value approaches $1,000 per ton, investors may have been expecting a larger tonnage and seem jittery over the company’s potential merger with Prime.

Akiko-Lori Gold continues to trade actively, the stock gaining 35cents to $4.35 on over 330,000 shares. The company is exploring a gold property in Ontario with Noranda. Further assay results are expected from the property in the next 10 days.