STOCK MARKETS — Foreign prospects add sparkle to VSE juniors

The Vancouver Stock Exchange composite index closed up 8.24 points to 1,154.2 over the report period ended Dec. 10, while the resource index rose 75.82 points to finish at 2,305.37.

Arizona Star Resource closed up $2.95 to $10.30 in heavy trading. The company released results from seven reverse-circulation holes on the Cerro Roman oxide gold zone at its 51%-owned Aldebaran gold-copper property in northern Chile. The results suggest Cerro Roman connects with the Romancito zone, which outcrops at surface a further 1.4 km to the east. Drilling to date has tested 400 metres of strike length. Toronto-listed Bema Gold holds the remaining interest in the property.

Preliminary results have been received from a first phase, 5,000-metre drill program designed to test an oxidized gold zone of silica-alunite alteration at Francisco Gold’s Sauzal project in Chihuahua state, Mexico. The zone, which measures 700 by 550 metres, returned 180.8 metres grading 2.14 grams gold per tonne in hole 8, 98.9 metres of 1.82 grams in hole 7 and 41.4 metres of 4.63 grams in hole 4. Francisco added 95 cents to finish at $16.60.

Gold and base metals analyst Francis Manns was appointed president and chief executive officer of Borneo Gold. The issue jumped $1 on the announcement, to close at $5.90. Borneo holds a 90% interest in the Bunut gold property in West Kalimantan, Indonesia.

Kensington Resources was halted at $1.35, up 11 cents, after reaching a preliminary agreement to acquire a 50% interest in the Changma diamond mine and two separate exploration concessions in China’s Shandong province from three privately held companies. The projects are the same ones that DiamondWorks failed to acquire from China Diamonds when the shareholders of that company would not unanimously approve an extension of the transaction’s deadline. Kensington will be required to issue 25 million shares and $6 million worth of debentures on or before Jan. 31, 1997.

Morgain Minerals continues to trend upwards, closing at $4.60, up 59 cents.

The company reports that BHP Minerals, which can earn a 51% interest in the Cuatro Hermanos porphyry project in Mexico’s Sonora state, has completed seven holes to date as part of a planned 30-hole drill program. Results are pending. Cuatro hosts an estimated preliminary resource of 200 million tonnes grading 0.48% copper and 0.035% molybdenite. Morgain will begin drilling on its Compa group of gold properties early in the new year.

Recent drilling at the Lo Increible gold property of El Callao Mining in Venezuela has extended downdip both the Victoria and Cruz zones. El Callao was up 2 cents at $1.42.

Dunlap Resources closed at $1.90 for a gain of 75 cents. It completed the acquisition of interests in four grassroots exploration properties in Indonesia. Dunlap’s portfolio includes projects in Indonesia, Chile and Labrador.

The 1996 field exploration program of partners International Butec Industries and Alberta-listed Troymin Resources has wrapped up at the Hawk Ridge project in northern Quebec. Troymin slipped 11 cents to 68 cents, while International Butec, which recently acquired a prospective gold claim west of the Afton mine in southern British Columbia, was up 16 cents at 72 cents.

Toscana Resources and partner Eastcan have submitted a revised bid on an Argentine land package of 250 sq. km surrounding the Alumbera copper-gold deposit in Catamarca province. Toscana has made arrangements to purchase a 100% interest in the concession from Eastcan once the bid is accepted.

Toscana closed up 10 cents to 47 cents.

Inca Pacific Resources was up 30 cents to $2.20 on the commencement of a 10-hole drilling program on the Cerro Oro gold property in north-central Peru.