Vancouver Stock Exchange Investors await market direction

Brokers aren’t expecting gold prices to take off to the stratospheric heights, predicted by hard-line gold bugs. However, many expect that the yellow metal will continue to hold or firm up slightly in the months ahead. This optimism is based on growing speculation that governments may be ready to ease high interest rates to avoid a possible recession next year.

At presstime trading activity in Vancouver was light but steady, with the VSE Index off marginally to 719.34 points. American Fibre was the most active issue today, down a nickel to 90 cents .

The issue is off because most of its properties in the Eskay Creek region of northwestern British Columbia were cancelled by an Oct 17 ruling by the British Columbia Gold Commissioner. The company does retain a 50% stake in the SIB claims (with Silver Butte Resources) adjoining the Eskay Creek project.

Calpine Resources was up a nickel to $5 today. The company’s key asset is its 50% stake in the Eskay Creek project. Prime Resources was off 2 cents to $2.08.

War Eagle Mining was among the more active issues over our report period, up 37 cents to $2.03. A year ago the issue was a high-flyer on the basis of two drill holes that indicated the property could have potential for a near-surface, bulk tonnage gold deposit. A division of Nerco Minerals is exploring the property under the terms a joint venture with War Eagle.

Ruby Mountain Mines says it does not know of any reason for the rise in its share price other than “peaking investor interest as a result of the involvement of Pacific Rim investors.” The issue was still active at presstime, up a further 39 cents to $1.26.

Adrian Resources was off 14 cents to $1.30 this past week. An Oct 17 ruling by the chief gold commissioner of British Columbia changed the status of Adrian’s property strategically on the northeast end of the Calpine/Stikine Eskay Creek ground.

Arc Resources, which originally optioned the property to Adrian, is now out of the picture, although we gather the company plans to appeal the ruling. Technically, the next holder would be Paul Dupras & Associates, and should this be upheld, Silver Princess Resources would have a 50% option and Adrian the option to earn the remaining 50%

But the story doesn’t end there. The property is bogged down with layers of staking by as many as five different parties and it’s unlikely Adrian will begin a work program until these matters have been resolved.

Another Prime company, Akiko- Lori Gold Resources, got a boost of 30 cents to 80 cents . The company announced an agreement with Noranda Exploration and Gold Fields Canadian Mining to explore a gold project in the Red Lake district of Ontario.

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