Vancouver Stock Exchange Waiting for the year-end rally

Wednesday close, Dec 17

The tone of the Vancouver market has changed significantly with a number of factors, including tax loss selling, depressing trading activity and prices. The year-end rally that was hoped for hasn’t arrived yet, although a few stocks have surged ahead on late-breaking exploration results, particularly Skyline Explorations.

Among the more active issues at presstime was Caldera Mines, unchanged at $4 on a volume of 160,000 shares. The company is undergoing a control change and recently announced plans to buy a B.C. electronics firm. This type of thing is quite common on Vancouver, where companies start out as resource listings and then switch over to “high tech.”

Vault Exploration, which recently said there had been no material change in the company’s affairs except for the exercising of 100,000 agents warrants, climbed 15 cents to $1.30. (It was 49 cents better during our report period). And Ashburton Oil was 5 cents stronger at 37 cents , also in respectable volume. The company recently announced an agreement in principle to acquire claims near the Skyline property in northwestern B.C.

Over our report period, Skyline Explorations was again a leader on the price side with a $1.12 increase to $7.50. European buying is believed responsible for much of the recent price appreciation. Goldhurst Resources was 65 cents stronger at $3.45 and Quartz Mountain, which has a large outstanding short position, closed the week 30 cents higher at $2.15. In November Metalore Resources confirmed its intention to finance gold production from Goldhurst’s placer mining leases in Mexico. This week Quartz Mountain said a new gold discovery had been made on its property near Angels Camp, Ore.

New listings for the week included: Interbev Packaging (formerly Seatac Resources), CCW System (formerly Texpez Oil & Gas), City Resources (Canada), Halcyon Resources, Fenway Resources and Mountain Lake Resources. VSE SHORT POSITIONS

The Vancouver Stock Exchange reports a short position of 4.9 million shares and warrants as of Dec 5, 1986,. Some of the larger positions included: Quartz Mountain, 404,500; Galactic Resources, 197,600; Westlake Resources, 169,100; Med-Tech Systems, 144,600; and Windarra Minerals, 139,000.