Lakewood, Green Valley tumble; market in retreat

Western markets continued a trend of general weakness during the period ended May 12, with the Vancouver composite index sliding by more than five points to finish at 615.71. The resource index sat unchanged at the 520 level.

Newly released trading statistics for the Vancouver Stock Exchange during April paint a bleak picture. Month-over-month volume showed a drop of 6.5% to an average of 14.3 million shares per day, while the dollar value dropped a whopping 20.1% to an average of $13.1 million per day.

The Alberta Stock Exchange composite index finished off by 5.05 points at 803.23.

Gold ignored calls for even a small trading rally following last week’s gold purchase by Newmont Mining; the yellow metal slipped to the US$335-per-oz. level.

Shortsellers on the Vancouver market appear to have reaped some profits in the wake of a plunge in the share price of Lakewood Mining and Green Valley Mine. Lakewood plummeted 79 cents to 86 cents; Green Valley followed suit, closing at 55 cents for a loss of 60 cents. The two issues ran up on large volumes in early May because of drilling on the companies’ 50-50 joint venture on the Wood claims adjacent to the Afton copper mine near Kamloops, B.C.

At last report, the short position on Lakewood was 179,900 shares, up 75,600 shares from the previous week, while Green Valley had a short position of about 65,000 shares. Assay results from the drilling have not been released. Booker Gold, which was working to acquire ground in the Afton area, posted a loss of 30 cents to close at 27 cents.

Promoter Murray Pezim’s successful appeal on charges of disclosure infractions made by the B.C. Securities Commission gave a number of Prime-managed companies a boost.

Prime Equities International, Pezim’s flagship, hit a high of $4.55 before closing at $4.30 for a gain of 40 cents.

Adrian Resources, which is earning a 40% interest in a large copper project in Panama, reached a high of 89 cents on the news before closing at 80 cents for a gain of 14 cents.

The news did not appear to help Golden Ring Resources. The issue, on a prolonged downward slide from the $1.50 level earlier this year, slipped another 8 cents to close at 92 cents.

Goldbelt Resources fared poorly in a vacuum of news, dropping 32 cents to 56 cents. The company is attempting to raise US$40 million for a 50% owned gold tailings project in the Republic of Kazakhstan. It recently hired N.M. Rothschild to help in the effort.

Profit-taking brought El Condor Resources back to the $4.70 level after a strong run the previous week to a year high of $5.38. St. Philips Resources, the company’s 40% partner at the South Kemess copper-gold project in north-central British Columbia, slipped 7 cents to $2.73.

War Eagle Mining edged down a nickel to $1 as the market waits for drilling results from a 10,000-ft. program now under way at the company’s La Blanca property in Mexico.

A bid for all the outstanding shares of Kokanee Explorations pushed the issue up 19 cents to $1.20. Consolidated Ramrod Gold plans to offer shareholders one common share of Ramrod for each share of Kokanee. Ramrod finished unchanged at the $1.25 level.