Vancouver Stock Exchange (March 02, 1987)

The agreement by major industrialized nations to halt or at least control the fall of the U.S. dollar should have been bad news for gold. But Brazil’s decision to suspend payments on its international debt negated much of the impact. Canadian bank stocks have been taking a bath lately because of their heavy exposure in Latin America. But gold stocks have remained stable and indeed could do better with inflationary pressures building in the U.S.

At presstime Vancouver’s market index was ahead 12 points to 1,462 and much of that gain was non-resource-based. These types of stocks are playing a more important role on the vse and they could help offset the cyclical nature of metal stocks.

There was some spectacular news two days ago from a joint venture involving Westmin Resources, Angle, and Nexus Resource Corp. Results from their Debbie project on Vancouver Island included 44.3 ft of 1.13 oz gold; within that section was 25.3 ft of 1.8 oz. You don’t see intercepts like that too often. Angle jumped 45 cents to $1.70 on the news and Nexus jumped 15 cents to $3.75.

Moving higher today in moderate volume was Newhawk Gold which jumped 5 cents to $2.80. The company plans a major exploration program on its Sulphurets project this year. Lacana Mining and Granduc Mines are participating in the program. Berle Resources, which is involved in “Operation Wawa” with Galveston Resources, was 5 cents stronger at 59 cents . And Gigi Resources was also ahead a nickel to 56 cents . The company recently concluded an agreement to acquire ground near the Skyline property in northwestern B.C.

Galveston posted a $4 increase to $23.75 during our report period, reflecting the promotional abilities of its Chairman, Murray Pezim. He’s been talking about regaining control of International Corona for several weeks but appears to have been stymied. A lot of people are asking whether he could run the company any better. (Corona closed the week $2.74 higher at $37.87.)

Skyline Explorations shot up 88 cents to $10.13 and Cornucopia tacked on 85 cents to $4.90. Skyline feels it will need 300,000 tons grading 0.8 to 1.0 oz to justify production at its Reg property, in northwestern B.C. Cornucopia recently concluded a deal with USX Corp. for a large claim group in Nevada. North American Metals, which is developing a gold property near Dease Lake, B.C. (N.M. Feb 9/87) was 65 cents stronger at $5.50.

Golden Group and Golden Hope have finally started to move now that work has resumed on their Estrades property, in the Casa Berardi area. The former gained 20 cents to $1.40 and the latter 65 cents to $2.60. United Global traded heavily over our report period and was ahead 20 cents to $1.35. The company recently changed control.

New listings for the week included: Ariel Resources, Iron River Resources, Aigner Holdings (formerly Iona Industries), K-2 Resources (formerly Sunshine Columbia), Morengo Resources and Niagara Capital (formerly Torhsen Energy).