Vancouver Stock Exchange (January 20, 1992)

With gold prices still hovering at the US$350-355-per-oz. level, trading results on the VSE indicate that investors are concentrating on non-resource issues. Brokers say investors are getting back in the game as many feel the economy is going to improve this year. But they are still shying away from junior mining issues because of weak metal prices.

Local mining analysts point out that the low prices for resource issues present an excellent buying opportunity for the astute investor. In that vein, bottom-fishing season was declared officially open (to the end of February), and bargain hunters are accounting for much of the recent trading activity.

At noon today, Jan. 15, the composite index was up 3.05 points at 588.82, while the resource index gained a modest 2.16 points at 518.79, up by 25.94 points from a week ago.

Bert Applegath’s New Beginnings took top spot in trading volume this week, and doubled its share price to 2 cents in the process.

Coral Gold was mentioned as a bottom-fishing special in a recent list compiled by a Vancouver brokerage house. Amax Gold will be drilling the company’s Nevada gold property which is adjacent to ground where Placer Dome recently made a significant gold discovery. Coral gained 19 cents to reach 71 cents on excellent volume.

After announcing an option agreement with Cominco, American Reserve Mining gained a nickel to 23 cents. Cominco will explore and develop American’s Kutcho Creek massive sulphide project near Dease Lake, B.C., and can earn a 66% interest.

But Arizona Star was down 4 cents to 62 cents after announcing a gold discovery on a Chilean gold property where the junior can earn a 51% interest. The Aldebaran property is reported to be similar to Bema Gold’s Refugio gold project some 18 miles to the north. (Arizona Star is 35% owned by Bema.)

Partners El Condor Resources and St. Philips Resources announced a large boost in reserves for their joint venture Kemess South copper-gold project in the Toodoggone district of northern British Columbia. El Condor, which has a 60% interest and is operator, lost 15 cents to settle at $4.20, while St. Philips remained even at $2.25.

The Kemess South deposit is now reported to host preliminary reserves of 252 million tons grading 0.23% copper and 0.019 oz. gold per ton (at a cutoff grade of 0.4% copper equivalent). Analysts say investors are somewhat nervous about the low grades, in view of current copper and gold prices. And investors are also awaiting a decision by Placer Dome on whether it will go ahead with the Mt. Milligan gold-copper project. If that project is put on the back burner, it’s expected this could dampen interest in other similar deposits for sale in the province.

Prime Resources got a boost this week, up 39 cents at $2.44. The junior has some solid assets in northwestern British Columbia: a 40% interest in the Snip gold mine operated by Cominco, and a 50% interest in the high-grade Eskay Creek deposit. Some of the recent trading interest in Prime is attributed to rumors that Placer and Corona are talking again, possibly about a new deal for Eskay Creek.