Vancouver Stock Exchange (September 30, 1991)

Despite a boost in the price of gold over the US$350 level again, the resource index remained flat over the week ended Sept. 24 at 533.63 while the composite index managed a 3.82-point gain to finish at 568.17.

Although apathy for resource shares appears to be getting even more deeply ingrained, the market proved it was not completely dead following the frenzied activity in Springer Resources and Cove Resources.

Springer took top volume spot for the week with over 13.4 million shares changing hands while Cove traded over 8.3 million shares.

The market action started with the release of four holes from the companies’ Unuk River property in northwestern British Columbia. The best hole of the initial four intersected 4.95 metres grading 6.24 grams gold and 155.6 grams silver. Both issues jumped on the news, Springer reaching a high of 68 cents before settling back to 54 cents and Cove touching 25 cents to settle at 20 cents.

The release of a fifth hole which intersected 4 metres grading 33.3 grams gold and 248 grams silver sparked a second rally which pushed Springer to 75 cents for a net gain of 28 cents on the week. Cove finished up 11 cents at 27 cents. Springer holds a 37.5% interest in the property, Cove holds a 12.5% interest and Granges controls the balance.

A funding agreement for the Windam property in the Cariboo Mining division of British Columbia helped push Gold Ridge Resources from the 25-cent level to 67 cents. The agreement calls for private joint venture partners to advance the company $1.72 million in consideration for a 23.1% interest in the project. In addition, a third party has agreed to provide up to $2.45 million in loans for the development of the gold mine.

Dessir Resources added a further 25 cents to close at $2.85. The price marks an increase of over $1.50 per share since early September. Dessir has been drilling on its Gibbs property in Mariposa Cty., Calif., and the company reports visible flakes of gold in a number of quartz veins. No assay results have been released.

Assays results from drilling on the Paymaster project in Timmins, Ont., did not seem to help 36% owner American Reserve Mining. The results included a 13.5-ft. intersection grading 0.57 oz. gold per ton and a 27.5-ft. intercept grading 0.44 oz. gold. American Reserve slipped three cents to finish at 30 cents.

NDU Resources released the remaining 33 holes from this year’s 62-hole program on the 50% owned Blende property in central Yukon. The drilling included a 183.9-ft. intersection grading 2.4% lead and 3% zinc and a 62.8-ft. intersection grading 4% lead and 5.1% zinc. NDU finished up seven cents at 47 cents. Billiton Metals also has a 50% interest in the property.