Vancouver Stock Exchange Weak gold prices affect market

Although trading activity here is still quite respectable, the price volatility seen in recent months has almost disappeared. Weaker gold prices were a major factor in the market retreat but they have strengthened lately reversing a rather decisive downward trend. Exactly how long this will last is anyone’s guess.

Tuesday’s market performance was flat with the VSE index inching ahead about one-quarter point to 1850.9. The market was closed Wednesday for our national holiday, Canada Day.

Over our report period, Tundra Gold posted one of the larger increases, rising $1.45 to $6. Tundra recently concluded a flow- through agreement with NIM and Company to sell 122,044 shares at $8.19 per share. The money will be used to fund a $1 million program on Tundra’s Lamaque mine property.

Brohm Resources, which has a 100% interest in the Gilt Edge heap leach project near Lead South Dakota, jumped $1.37 to $11.50 and Delaware Resource Corp climbed $1.03 to $5.88. Cominco is exploring Delaware’s SNIP prospect near the Skyline property in northwestern B.C.

A number of other stocks posted respectable advances including Pacific Kenridge which was ahead 70 cents to $4.10. At last report, the company had finalized an agreement to purchase a U.K. trading company. Murray Pezim’s Galveston Resources ended the week 68 cents stronger at $5.38 Galveston recently entered into an amalgamation agreement with Blackbird Resources whose principals include Ned Goodman and Peter Steen. Blackbird has acquired the rights to a colemanite deposit in southern California.

Treasure Island Resources, which early last month said it was seeking a joint venture partner for its Spider Lake property in the Northwest Territories, was 52 cents higher at $2.70. And Byron Resources, which is finalizing plans for an exploration program on its Marie property near Prince George, managed a 45c gain to $1.95. Almaden Resources came on strong, rising 30 cents to $1.90. The company has entered into an agreement with Polestar Exploration to earn a 50% interest in its Falcon Lake gold property in southeast Manitoba.

Tungo Resources was the volume leader over our report period with a turnover of approximately one million shares. The stock was 26 cents better at $1.11. The company has been doing engineering and geological work on its Waratah properties in northwestern B.C.