Vancouver Stock Exchange: Market turns sour as gold slips

Wednesday close, Oct 15

With gold in a distinct downward trend, the Vancouver Market has turned sour with many stocks posting significant losses in generally mixed trading. The likelihood of this trend continuing is high because of the seasonal nature of exploration in most parts of Canada.

Many companies have or are winding down exploration programs, so any positive news would have already impacted on their share price. But a late-year market rally can’t be ruled out. Look at 1985 when the Casa Berardi area heated up. Something like this could easily happen again.

Moving higher today in moderately active trading was Edgewater Resources which jumped 15 cents to $2.55 on just over 70,050 shares. MFC Mining Finance, a major shareholder in Blackdome Mining and also the Stibnite gold mine in Idaho, had a turnover of 500,700 but was unchanged at $4.75.

Eastmaque Gold was fairly active and ahead 10 cents to $4.40 and Texpez Oil and Gas was 5 cents stronger at $1.00. Eastmaque expects to be producing gold from its tailings project near Kirkland Lake, Ont., in mid-1987. Texpez, which recently secured a $528,600 private placement, will be changing its name to CCW Systems and concentrating on non-resource assets. At presstime, the market index was off 8.5 points to 1422.9 and volume was moderate.

Over our report period, Bighorn Development was one of the most active issues with a turnover of 1.03 million shares for a 21 cents gain to 68 cents . Steed Ventures closed 9 cents lower at 26 cents and Tally-Ho was unchanged at 53 cents .

Many producer gold stocks were lower, but International Corona bucked the trend, rising $1.25 to $28.00. The market appears to think Lac’s appeal on the Williams property won’t be successful. The appeal will be heard later this year. Galactic managed a 50 cents gain to $12.25 in low volume and has been surprisingly strong despite the fact that actual production from its Summitville gold property will probably be well below forecast.