Dessir grabs headlines after salting scam reported

Western markets continued a prolonged slide during the week ended Apr. 28. The VSE composite index closed down 16.02 points at 615.20 while the resource index managed a more modest loss of 3.28 points to the 522 level.

The ASE composite index also came under pressure, falling more than 35 points to 801.41.

On the Vancouver market, Dessir Resources dropped a bombshell by announcing that the review requested by the VSE on the drilling program at the Gibbs property in Mariposa Cty., Calif., showed placer gold was added to samples taken from a number of drill holes. Upon examination of the drill core, no gold values were found and as a result, the property no longer has any proven reserves.

Dessir’s share priced jumped to a high of $3.35 last year after the company released a number of wide multi-ounce assays from the property, subsequently estimating proven and probable reserves of more than 800,000 tons grading 0.86 oz. gold per ton.

Following the release of the report, the VSE lifted the trading halt instituted Feb. 6, sending Dessir’s shares into a free-fall. From its Feb. 6 close of $1.23, the issue plunged to a low of 15 cents before recovering to finish the period at 21 cents with more than 350,000 shares traded. Trading in Bonaventure Resources presented a mystery to management which announced that there were no material changes in the company’s affairs following the drop in share price to 53 cents from $1.01. The company has a 51% interest in a limestone property near La Rumorosa, Mex., and hopes to ship up to 100,000 tons of limestone to glass factories in Mexicali by the end of the year.

Hawkeye Developments appears to be attracting a few short sellers, with the short position as of Apr. 24 jumping by 58,000 shares to total 422,500 shares. The company operates a garnet quarry in Idaho and hopes to increase production to 60,000 tonnes per year by the end of 1992. The issue finished the period unchanged at $8, giving it a market capitalization of more than $80 million.

A property deal with Gold Fields Canadian Mining on its Nizi property north of Dease Lake, B.C., appears to have given Gold Giant Minerals a boost. The issue added 21 cents to close at 81 cents. Gold Fields may earn a 50% interest in the property by spending a total of $4 million. The company has tentative plans for a $380,000 program this summer.

An amendment to its net profits interest (npi) agreement on the Jan/Summit claims at the Gibraltar mine near McCleese Lake, B.C., didn’t seem to help Newcoast Silver Mines. The issue fell to 17 cents from the 30 cents level after announcing the npi will be altered to allow the deduction of exploration, capital and interest expense. Gibraltar plans to conduct a drilling program on a new deposit discovered on the ground last year. Westar Mining has threatened to shut down its Balmer coal mine in southeastern B.C. unless it obtains major concessions from its 1,100 unionized workers. Westar lost $62.2 million last year, and has debts of about $330 million.