Stock Markets — Voisey Bay trading enters wait-and-see phase

Trading activity on the western markets has succumbed to the summer doldrums. The markets’ enthusiasm for the Voisey Bay nickel-copper-cobalt play in Labrador has dampened, with investors assuming a wait-and-see attitude.

Over the report period ended Aug. 22, the Vancouver Stock Exchange composite index gained 2.27 points to close at 835.76, while the resource index slipped 2.84 points, finishing at 1,296.90.

Delgratia Mining, which tumbled $3.20 to close at $4.80, reported that irregularities in the title of the ownership to the Pauji concession in Venezuela have come to light. Delgratia acquired the concession from International CanAlaska Resources back in February. Ownership of the mine remains unclear, and legal action is being considered. CanAlaska closed at 96 cents, down 36 cents. Delgratia, in the meantime, has entered into a joint-venture agreement with Western Mining concerning the exploration of concessions totalling 8.6 million acres throughout Nicaragua.

Prime Equities International is negotiating for the controlling interest in Toronto-listed Western Copper Holdings held by Toronto-listed Teck. Proposed is a share issuance by Prime Equities for the shares Teck holds in Western Copper, whose main asset is the Carmacks copper-oxide joint venture project in the Yukon. The deposit hosts a minable reserve of 15.6 million tons grading 1.01% copper and 0.015 oz. gold. Prime Equities jumped $1.55 to finish at $4.50.

Exploration on the TV zone at Kenrich Mining’s Corey property, south of the Eskay Creek mine in northwestern British Columbia, has returned trench samples grading 0.57 oz. gold and 2.5 oz. silver per ton across 9.8 ft. Halos of low-grade mineralization yielded grades of 0.02 to 0.085 oz. gold over widths of 20 to 50 ft. The TV zone is 300 ft. wide and possibly 5,000 ft. long, with drilling scheduled to begin shortly. The company has completed a private placement of 850,000 units at $1.30 per unit. Each unit consists of one common share and one warrant, entitling the purchase of an additional share at $1.60. Kenrich closed at $1.75, up 15 cents.

An initial 9-hole drill program was carried out on the Gil claims held 80% by New York-listed Amax Gold and 20% by Teryl Resources. The claims are adjacent to Amax’s Fort Knox gold project in Alaska, which is undergoing construction and development. Fort Knox contains proven and probable reserves of 174 million tons grading 0.024 oz. gold per ton. Assay results from the first two drill holes on the Gil claims include 125 ft. of 0.11 oz. for hole 95-8 and 20 ft. of 0.031 oz. for 95-9. A second phase of drilling, consisting of 2,000 ft., is expected to commence shortly. Teryl closed up 2 cents to 37 cents.

Etruscan Enterprises continues its ascent, climbing $1.25 to close at $5. The company is accelerating its exploration program on the Koma Bangou gold property in Niger, West Africa. Drilling has intensified and Etruscan is focusing on three large, gold-bearing structures. The company is working to earn a 67% interest in the property.

Mountain Lake Resources reports that a letter of intent has been signed, allowing a major mining company the right to earn a 51% interest in the West Transvaal alluvial diamond property in South Africa. The agreement is subject to a due diligence review. Mountain Lake gained 25 cents to finish at 60 cents.

Atna Resources closed at $1.05 for an increase of 25 cents. The first hole of a drill program now under way on the Foot property in the Yukon returned 3.9 metres of 10.2% zinc, 0.3% copper and 0.49% lead, plus 0.34 grams gold and 59.6 grams silver per tonne. This was in addition to 2.7 metres of 2.5% zinc, 0.83% copper, 0.27% lead, plus 0.2 grams gold and 69.1 grams silver per ton. Toronto-listed Westmin Resources is earning a 60% interest in the Foot, Pak and Toe properties.