STOCK MARKETS — Voisey Bay exploration activity fuels western markets

Western markets remained somewhat lacklustre through the month of May, although activity related to interest in the Voisey Bay region of Labrador helped to reverse the downward trend over the report period ended May 30.

The Vancouver Stock Exchange composite index edged upward 7.09 points to close at 781.55, while the resource index gained 10.37 points to finish at 1,305.89.

Gulf International Minerals continued its rapid ascent, climbing to $1.98, for a gain of 93 cents. The company, which reports no material change, currently holds a 49% interest in a joint venture concerning the Aprelevka gold project in the former Soviet Republic of Tajikistan. A study by Gulf indicates Aprelevka hosts a potential open-pit resource of 2.2 million tons grading 0.18 oz. gold per ton. A due diligence review is being undertaken by United Kingdom-based Robertson Research Group.

The proceeds from a private placement of 750,000 flow-through units (at a price of 40 cents per unit) will be used by Spokane Resources for exploration programs this summer at its Rex Mountain property in southwestern British Columbia, as well as at the Mac moly property in the central part of the province. Spokane closed up 16 cents to 60 cents.

Voisey Bay activity continues to enthrall the market as speculation is fuelling juniors holding any sort of property in the area. NDT Ventures, with one of the largest land positions, jumped 90 cents to close at $4.10. An airborne geophysical survey over the company’s claim blocks is expected to commence shortly. A major exploration program is planned for the summer which will include follow-up ground geophysics, prospecting, mapping and sampling.

In related news, NDT Ventures granted Layfield Resources an option to acquire a 50% interest in 1,594 mineral claims in the Voisey Bay area of Labrador. Layfield must pay a sum of $200,000, issue 200,000 shares and spend over $1 million on exploration within two years. Layfield closed up 4 cents at 55 cents.

Alberta-listed Absolut Resources made a huge gain of $1.38 to close at $4.30. The company is reported to be in the midst of an underwriting to raise financing for its exploration program at Voisey Bay, and is expecting results from airborne surveys shortly.

Donner Resources continued its meteoric rise, vaulting $1.26 to close at $2.92. The company has negotiated a private placement totalling $1.5 million to be used for exploration on its 5,000 claims, consisting of 308,850 acres in the Voisey Bay-Harp Lake area. The company announced it is discontinuing its review of various projects in the Republic of China, so that it can concentrate its efforts in Labrador.

A preliminary, max-min geophysics reconnaissance program is being carried out by joint venture partners Goldnev Resources and Starcore Resources on the Niatak property, 28 miles east of the Voisey Bay discovery. The property is reported to host a gossan measuring 950 ft. by 150 ft., and government records indicate the presence of copper and nickel sulphides associated with pyrrhotite mineralization. Goldnev added 17 cents to finish at $1.10, while Starcore closed at 87 cents, also up 17 cents.

A decision by First Western Minerals to concentrate its efforts in Labrador has led to an agreement to transfer its option on a 49% interest in the Honey Camp property in Guyana to Consolidated Gold Vessel Resources. First Western, in turn, has increased its holdings in the Voisey Bay area by acquiring an option to earn up to an 80% interest in three properties totalling 12,000 acres. First Western closed up 10 cents to 74 cents, while Gold Vessel slipped 3 cents to 50 cents.

Peruvian Gold acquired five separate claim blocks totalling 64,000 acres in the Harp Lake area. The issue jumped 45 cents to close at $1.30.

The acquisition of 227 claims in two blocks in the Harp Lake area gave Leicester Diamond Mines a boost of 14 cents to finish at 40 cents.

An agreement to form a 50-50 joint venture will give Tellis Gold Mining and Kernow Resources and Developments combined holdings of 83,563 acres in 15 claim blocks in the Voisey Bay and Harp Lake areas. In a separate agreement, Lumina Investment can earn a half interest in Kernow’s Claim Block 1, consisting of 88 claims totalling 5,500 acres, approximately 9 miles north of Nain. Tellis added 14 cents to close at 61 cents, Kernow edged up 2 cents to 85 cents and Lumina slipped 4 cents to $1.16.