STOCK MARKETS — Gold takes the fall in western markets

As the price of gold tumbled to its lowest level in 15 months, a widespread selloff of junior mining stocks hampered western markets over the report period ended June 11.

The Vancouver Stock Exchange composite index closed down 112.39 points at 1,320.71, while the resource index fell 315.45 points to finish at 2,282.63.

Dipping to as low as $16.10, Valerie Gold Resources closed at $20.80, up 80 cents. The company has drilled 22 holes to date at its 85%-owned Mamatla property in Mexico. Significant widths of massive sulphides have been seen in most of the holes. Eight of the holes were completed in the Capire area, where previous work by the Mexican government suggests a potential resource of 5.2 million tonnes grading 17.3% zinc and 5.92% lead, plus 0.4 gram gold and 445 grams silver per tonne.

Farallon Resources was initially hit hard, falling to a low of $10.50 before recovering to $15.50, for a loss of $1.65. The company has started drilling on the Reforma gold-silver massive sulphide deposit at its Campo Morado project in Mexico’s Guerrero state. Underground sampling at Reforma returned selected values, including 13.6 metres grading 9.47 grams gold and 199 grams silver, plus 5.95% zinc, 0.36% copper and 2.39% lead. In addition, Farallon is increasing its land position by acquiring the 2,025-sq.-km Don Pedro concession which extends north from Campo Morado to Valerie Gold’s Mamatla property.

Sino Pacific Development was up 19 cents at $1.59 on news that it was negotiating a joint-venture agreement on Toronto-listed Laminco Resources’ 15,000-acre Durango gold project in Mexico.

An agreement to acquire up to a 90% interest in a private Ghanaian company, which holds the reconnaissance licence on a 150-sq.-km gold concession in the western part of Ghana, resulted in a 13 cents gain for Alpine Exploration.

The issue closed at 53 cents.

A proposed 40-hole drill program is under way at the Corey property of Kenrich Mining in the Eskay Creek area of northwestern British Columbia. The issue finished down 14 cents at $1.40.

The confirmation of a planned second phase of drilling for Sierra Nevada Gold’s Promontorio in Mexico’s Chihuahua state ended the slide of the issue, which traded as low as 60 cents before closing at 88 cents. The result was a loss of 7 cents.

Everest Mines & Minerals rose sharply to $1.60, up $1.10. The company has arranged a brokered special warrant private placement and intends to use the funds to acquire two properties in northwestern British Columbia.

Russian diamond explorer Archangel Diamond is expanding its presence to South Africa. The company has agreed to acquire Global Diamonds, a South African company which owns a half interest in an alluvial diamond deposit, along with the rights to acquire two other diamond properties. Archangel slipped 19 cents at $2.40.

Argosy Mining traded between a low of $2.95 and a high of $3.85 before closing at $3.65, down 10 cents. A diamond drill program has begun on the Kremnica epithermal gold-silver project in the Slovak Republic. Initial work will focus on the Sturec deposit, where previous exploration delineated a gold-equivalent resource of 428,000 oz. At the Pukanec property, drilling will begin in a few weeks on the Biela Bana, where trenching has outlined a gold-silver target. About 66,000 ft. of drilling is planned.

The release of further drill results by Argentina Gold did little to reverse the junior’s downward trend, as it slipped 65 cents to $1.75. A 2,158-metre program of reverse-circulation drilling was completed on the Del Carmen property, in which Toronto-listed Barrick Gold holds a 60% interest. The testing of induced-polarization and resistivity geophysical anomalies returned widespread values ranging from 3 metres of 0.77 gram gold to 8 metres of 2.16 grams. Argentina just completed a private placement of 2 million shares at a price of $4.50 per share.