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Daily Market Headliners
Friday, June 4, 1999
Andrew Muir, CFA, Mining Analyst (604) 643-7008
andrew_muir@canaccord.com
This publication is a market commentary not to be construed as a
source of buy or sell information
MARKET PULSE
N DJI +85.80 71,284,800
T TT +36.30 64,901,931
V VV +3.31 21,501,577
T GL +100.00
The stock market received additional signals Thursday that resource
stocks are in and interest-sensitive stocks are out. Advances led
declines 499 to 464 as eight of Toronto's 14 stock groups ended higher
with the gold sector up 2.03% and the oil and gas group gaining 1.13%.
By contrast, the financial-services sector ended 0.41% lower. The
interest in the gold group would seem to underscore investors'
apparent bullishness for resource stocks, since the gain resulted
despite a flat performance in the price of gold. The rise in
Toronto's oil and gas group had more fundamental support as crude oil
prices ended higher on reports of a decline in oil stocks. Newbridge
Networks Corp. fell for the second consecutive session, ending down
1.35 to 37.95 Thursday, as investors continue to digest the company's
disappointing earnings results for the latest quarter.
HEADLINERS
BOLIVAR GOLDFIELDS ("BVG-T")
Tomi gold
production for the month of May was approximately 6,000 ounces.
Under a revised mining plan, Tomi is expected to produce 66,000 ounces
in 1999 at an average operating cash cost of $118 per ounce. The
Company has sold approximately 80% of its 1999 gold production forward
at an average price of $294 per ounce.
ESSEX RESOURCE ("ESX-T") - Acquires 100% Interest in Universal
Internet Marketing Ltd. UIM is an internet marketing company formed to
meet the requirements of the huge market for web users interested in
gaming, gaming resorts and casinos. Universal owns proprietary rights
to Casino Grande.com, Cyber Vegas.com, 123 Lottery.com and Pick the
Pros.com. UIM's main product today is Casino Grande, currently up
and running as a fully functioning cyber casino offering; Black Jack,
Video Poker, Craps, Roulette and Slots. The market for in-home
gambling alone is estimated to have been US$49 billion in 1998. Based
on UIM's current revenues, projected revenues for the year 2000 are
U.S.$32 million. It is UIM's intention to build and operate a
full service, ever-expanding group of entertainment sites centered
around, but not limited to, on-line gaming. Cyber Vegas will generate
revenue as an advertising vehicle whose utility to the user is that of
a directory of both physical and on-line casinos. The objective is to
gain most major Las Vegas casinos as advertisers on the site in return
for a place on the Cyber Vegas globe of gaming. Under the terms of the
agreement the total consideration to be paid to the shareholders of
UIM is U.S.$200,000 and 12 million common shares of the Company. The
proposed issuance of the shares will be based on performance criteria
derived from UIM's business plan and subject to the approval of the
Toronto Stock Exchange.
CARDIOCOMM SOLUTIONS ("CCG-V") requested to develop a Microsoft(R) SQL
Server(TM) version of its Global ECG Management System ("GEMS"). The
SQL Server(TM) version of GEMS is the next logical step to facilitate
the requirements of large scale users who require large amounts of
patient data to be managed and stored. The Company plans to
officially launch the enterprise version utilizing the Microsoft(R)
SQL Server(TM) during the week of September 13. The Company's
software, which is Y2K compliant, enables transtelephonic monitoring
of arrhythmia and/or pacemaker implant patients, and provides
acquisition, storage and display of ECG information.
ORVANA MINERALS CORP ("ORV-T") - BHP-World Exploration (BHP) has
decided to close its La Paz office and terminate the Option Agreement
for Pederson and the Exploration Corridor in Bolivia". The Pederson
deposit contains 35.4 million tonnes with a grade of 1.4 grams gold
per tonnes (1,600,000 ounces) in the indicated category, and 16
million tonnes of similar grade (730,000 ounces) in the inferred
category. The reconnaissance type drill program carried out by BHP
does not affect this resource or its potential to double in size.
BHP's drilling was done on 600 metre step-outs from the outer
perimeter of the resource to test the potential for the discovery of a
5-10 million ounce gold deposit. Results are pending.
CUMBERLAND RESOURCES (CBD-T) is pleased to announce the first results
from expansion and infill drilling programs at its 100 % owned
Meadowbank Gold project,Nunavut, Canada. Prior to the current
drill program the project contained an independently estimated project
resource of 1.73 M oz. (2.0 M oz. uncut). New drilling indicates that
both grade and tonnage increases have been achieved at shallow depths
in the northwestern portion of the Third Portage open pit deposit as a
result of 1999 drilling. Infill drilling at the Goose Island deposit
continues to confirm and improve the quality of the near surface,
higher grade portion of this resource. Previous resource estimates
outlined 1,113,400 tonnes with an average grade of 9.33 g/t (333,900
oz.) for the deposit. Cumberland has interests in three emerging
projects: Meadowbank (100 %), Meliadine West (22 % carried), and
Meliadine East (50 %).
MARKET MOVERS (Previous day's closing statistics)
Unique Broadband UBS 3,515,250 .61 +.02 Ships first of 9
wireless network systems to London school board. 60M shs issued.
Strength could signify start of new uptrend.
Nortran Pharma NRT 318,260 1.69 +.15 Nearing closing date of deal
in which a major pharma co. will be optioning NRT's anti-heart attack
drugs.
Sideware Systems SYD 314,075 2.55 +.05 Signs up US marketing firm
to sell SYD's e-commerce development services.
Maracote Res MCE 243,200 .44 +.09 Chet Idziszek co. resumes
drilling on Peruvian gold target. Ph I results encouraging but
inconclusive on extending mineralization from old workings. Very
large geochem anomaly but drilling needs to provide support for
continuous zones. $0.90 hi in Jan.
Can West Exploration CWI 223,300 .60 +.17 Possible financing
package on the table to allow drilling of high potential Colombian
oil/gas licenses.
Glacier Resources GIR 200,166 .46 +.08 Super tight shell looking
for Internet deal.
Ventel Inc. VNT 188,833 .37 +.04 Pending 3.5M unit PP @ $0.40 for
development of 50's plus website.
Leicester Diamonds LCD 127,500 .33 +.07 Halted pending news.
Possible change of business focus.
Reupert Resources RUP 102,150 .92 +.26 Possibly following lead of
sister co. that has entered Internet arena. However states that cash
from 1.1M unit PP @ $0.50 to be used on S. African diamond property.
AGC Americas Gold AGA 94,776 1.37 +.23 Developing watch and
jewelry e-commerce website.
Intl Kirkland Resources IKI 92,000 .70 +.11 Drilling Lac Rocher
VMS target. Probably on 3 rd hole.
Cons Silver Tusk CKS 49,000 .60 +27% Potential for sustained
uptrend as strong investor group steps in to co. with Indonesian gold
property with good potential.
Applied Terravision TER:A 871,500 .80 +.05 E-commerce software
provider forms alliance with US based Internet server. 93% rise in
quarterly revenue to $6.2M with earnings of $233,000 ($0.01/sh).
USA Video Interactive US:A 542,000 .81 +.03 Strong support on
alliance with US Internet co. to bundle video-on-demand service.
Brears Trucking BTL:A 152,000 .80 +.25 Acquiring electronic
distribution co. ($10M annual sales) to sell BTL's remote video
monitoring equipment.
Tan Range Mining TNX:A 149,000 .43 -.09 Barrick options 60% of
Itetemia gold property in Tanzania by subscribing for $3M in staged
private placements starting with 1.4M shs @ $0.70. Newmont has
optioned 4 other Tanzanian gold properties.
Raymor Resources RARA: 133,300 .58 +.06 Continued uptrend since
reporting pre-feasibility study on lithium deposit in Quebec.
Aurado Exploration AEO:T 932,692 .13 +53% Pleads ignorance in
reason for active share price.
Gran Colombia Resources GRM 1,051,275 .55 +41% Renewed interest
in co. with $10M cash ($0.35/sh) and looking at Internet business.
Essex Resources ESX:T 1,229,960 .65 +38% Acquires Internet
gambling company with operating website. Projects US$32M revenue.
Tahera Corp. TAH:T 1,066,754 .24 +26% Files development plan on
NWT diamond mine. Production planned for 2001. Diamonds valued at
US$69/ct. 160M shs.
Tri Vision Intl TVL:T 482,137 2.73 +21% Sharp signs deal to
include V-chip program filtering chip into all TV's.
Alterex Corp. AXO:T 603,100 1.03 +21% $3M government investment
in co. developing late-stage cancer drugs.
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