STOCK MARKETS — Western markets propelled by $400-per-oz. gold

With gold rising above the US$400-per-oz. level, western markets gathered steam over the report period ended Jan. 23. The Vancouver Stock Exchange resource index soared 120.77 points, to close at 1,492.26, while the composite index added 36.43 points, to finish at 865.26. Projections that the Busang gold project in the Indonesian province of East Kalimantan could contain as much as 30 million oz. lifted Alberta-listed Bre-X Minerals up another $14.50 to $98.50.

Spurred on by Bre-X, Indonesia has turned into a hot area play. Indomin Resources hit a high of $4.35 before closing at $4 for a gain of $1.35. The company added to its package of properties in Kalimantan by acquiring two new gold projects, totalling 255,000 hectares.

Contracts of work covering separate projects on the island of Kalimantan were acquired by Consolidated Brenzac Development, Inlet Resources and Insular Explorations. Consolidated Brenzac closed up 17 cents at $1.50, Inlet added 5 cents to finish at 53 cents, and Insular closed at 66 cents for a gain of 18 cents. Alberta-listed Celtic Minerals and Olympic Resources announced their intentions to participate jointly in the acquisition of a potential mineral property in Kalimantan. Celtic closed up 26 cents at 77 cents, while Olympic added 23 cents to finish at 58 cents.

Consolidated Silver Tusk Mines gained 18 cents to close at 95 cents on the announcement it was negotiating for two mining properties in Kalimantan.

Williams Creek Explorations and Dentonia Resources have formed a syndicate with a private Canadian group, the purpose of which is to acquire contracts of work in Indonesia. Williams Creek closed at 75 cents for a gain of 30 cents, while Dentonia finished at 20 cents at 77 cents.

A brokered private placement of 4 million units at a price of $2 per unit has been negotiated by Essex Resource. Each unit will consist of one share and one-half purchase warrant. One full warrant will entitle the purchase of one additional share at a price of $2.25 for one year. Proceeds will be used to explore its Bolivian gold concessions and carry out drilling in Labrador. The issue jumped 90 cents to close at $2.30.

The acquisition of an option to earn a 50% interest in the San Miguel silver property in Mexico’s Sonora state met with a $1.25 gain for Silver Standard, which closed at $8.25. The company also received preliminary results form the Dios Padre silver property. Underground sampling averaged 6 oz. silver per ton in one zone, while grab samples assayed up to 35 oz. silver and 13% lead.

Speculation over drill results from the Taylor Brook property in New Brunswick boosted Albert-listed Stratabound Minerals to $3.65, before being halted at $4.70 on Jan. 22 at the request of the Alberta Stock Exchange. Results from the first hole (96-17) in the current, 6-hole program of deep drilling included 19.5 ft. averaging 2.71% zinc and 1.46% lead, as well as 0.80 oz. silver per ton, at a depth of 1,208.2 ft., and 10.8 ft. averaging 8.64% zinc and 4.17% lead, plus 2.32 oz. silver at a depth of 1,263.6 ft.

Two of the placees, who had committed to purchasing 1.5 million units of a 2-million-unit private placement offered by St. Jude Resources, have undertaken legal proceeding to withdraw from the financing, which is scheduled to close by Feb. 9. The units are priced at $3.30 each and consist of one share and a 2-year share purchase warrant. St. Jude closed down $1.20 at $2.30.

Exploration planned for the Minoro copper-gold project in Honduras will include at least 5,000 metres of drilling. Champion Resources is committed to spending $4 million on exploration in order to earn half of the 80% interest held by Toronto-listed Tombstone Explorations. Champion added 53 cents to close at $1.43, while Mar-West Resources, which owns the other 20% interest, finished at 99 cents for a gain of 22 cents.

Chapleau Resources jumped 95 cents to close at $1.35, after agreeing to a private placement of 1.3 million flow-through units at a price of $1.28 each. Each unit consists of one share and a 2-year warrant. Chapleau has staked additional ground at its Cruz property in British Columbia, where it is targeting silver-lead-zinc mineralization.