STOCK MARKETS — Voisey Bay saga continues to captivate western markets

Western markets were characterized by mixed results at the end of the report period which closed Aug. 8. The Vancouver Stock Exchange resource index dropped by more than nine points to 1,296.03, while the composite index managed to add a meager 2.59 points to close at 833.41.

The VSE reports that trading in July continued at a strong pace. Volume totalled 520 million shares, resulting in a 20% increase over the same period last year.

Investor interest remains largely focused on exploration activity in the Voisey Bay region of Labrador.

Joint-venture partners Starcore Resources and Goldnev Resources both took hits following the release of initial drill results from their Niatak Island property. Starcore lost 55 cents at 80 cents, while Goldnev dipped 19 cents to $1.65.

The joint venture completed a 5-hole drill program to test a zone of surface mineralization on the property. Results from four of the holes returned assays of 0.15-0.7% copper, 0.15-0.49% nickel and 0.051-0.162% cobalt. The longest intersection, in hole N195-04A, assayed 0.26% copper, 0.17% nickel and 0.058% cobalt over 6.36 metres.

The joint venture is now awaiting drill permits for a further 50 holes.

Consolidated Magna Ventures landed a $1.9-million financing of special warrants at $1.25 each. The issue traded as high as $1.60 before settling back at $1.27 for a gain of 7 cents on the week. Consolidated Magna holds four properties in the Voisey Bay area and two properties in the Goose Bay area, and it reports that further property acquisitions are pending.

The discovery of semi-massive pyrrhotite and chalcopyrite on its Voisey Bay area property gave Pacific Golden Spike Resources a 20 cents lift to $1.10. Freshly blasted samples have been sent out for assay, and results are expected by mid-August.

Leicester Diamond Mines added a dime at 62 cents after reporting the discovery of nine gossan zones containing varying amounts of pyrite, pyrrhotite and chalcopyrite on its two claim blocks in the Harp Lake area of Labrador.

A recent change in control and its new focus on Voisey Bay are helping Pamlico Gold, which recently completed a 1-million-unit private placement at 38 cents per unit. The issue gained 37 cents to close at 87 cents.

Drill results from the Georgia River property in northwestern British Columbia helped Aquaterre Mineral Development add 12 cents to close at 45 cents.

The company reports that ore-grade values were encountered in three of the six holes assayed to date, including 82 grams gold over 0.6 metre, 30 grams over 0.9 metre and 44 grams over 2 metres.

War Eagle Mining added 25 cents to close at $4.05 in anticipation of drill results from its La Fortuna silver-gold joint venture with Hecla Mining in Mexico. An initial 11-hole drill program got under way July 24. Hecla is earning a 60% interest in the property and plans to test two zones of gold-silver mineralization identified by War Eagle.

A recent purchase recommendation by Brokerage firm C.M. Oliver gave Alberta-listed Marum Resources a 30 cents lift to 63 cents. Marum plans to begin drilling on its Ironcap gold project in northwestern Alberta to test for gold mineralization.

The acquisition of an option on claims lying adjacent to Cominco’s Kudz Ze Kayah massive sulphide deposit in the Yukon helped Demand Gold add 13 cents at 68 cents. Demand expects to begin a program of geochemical, geological and geophysical surveys in mid-August.

Joint-venture partners Norcan Resources and Contiki Resources both gained ground on news that drilling on their La Trinidad concession in Venezuela intersected a zone of high-grade gold mineralization. The fourth hole of this year’s program intersected 7.2 metres grading 25.3 grams. Norcan added 6 cents at 46 cents, while Contiki notched up 15 cents to close at 95 cents.

Prime Equities International gained ground following the return of Murray Pezim as president of the company after an illness. The issue finished up 50 cents at $2.50.