STOCK MARKETS — Volatililty rules on western markets as trading skyrockets — Donner, partners cool down as investors size up South Voisey’s Bay

October ended in volatility, as trading activity reached a 7-month high.

The Vancouver Stock Exchange composite index closed at 775.11, down 6% from September and down 32% from October 1996. The mining indicator lost 9% of its value during the month, closing at 674.38.

During the report period ended Nov. 4, the composite index was up 7.42 points, or 1%, to close at 769.78. The mining index edged up 2.98 points, or 0.4%, to finish at 665.73. The combined value of the Alberta Stock Exchange rose 95.62 points, or 4%, closing at 2,477.53.

Arizona Star Resource and partner Toronto-listed Bema Gold have taken it on the chin since optioning a 51% interest in their Aldebaran gold-copper property in northern Chile to Toronto-listed Placer Dome. Arizona Star lost 98cents to close at $2.63.

Investor sentiment on the South Voisey’s Bay project in Labrador was not as optimistic after Donner Resources gave a well-attended presentation in Vancouver and released a summary of the project. Donner slipped 38cents to $2.71, while partner Alberta-listed Northern Abitibi Mining fell back 19cents to $1.51. Drilling continues to test three separate joint-venture projects: the Donner property, west of the project held by Donner, NDT Ventures and Latitude Minerals; the project held by Donner and Northern Abitibi; and the project held by Donner and Cypress Minerals. Cypress dropped 29cents to close at 65cents, while NDT Ventures was up a penny at 57cents and Latitude was up 3cents at 50cents. Toronto-listed Teck is managing the drilling program and can earn half of Donner’s interest.

Other juniors affiliated with Donner through joint ventures in the South Voisey’s Bay area include: Major General Resources, down 4cents at 54cents; Mandorin Goldfields, down a nickel at 20cents; Curion Ventures, up 1cents at 47cents; BMA Mining, up 9cents at 67cents; Aranlee Resources, down 1cents to 21cents; Essex Resources, down 12cents to 70cents; and Layfield Resources, down 1cents at 11cents.

The Mexican subsidiary of Toronto-listed Teck has begun a 12-hole, 2,500-metre program of diamond drilling on International Northair Mines’ Lachatao property in the southern Mexican state of Oaxaca. The program will test six gold prospects that were identified during this year’s exploration program. Teck, which can earn up to a 70% interest in the property, is targeting bulk-tonnage mineralization. International Northair closed up 17cents at 67cents.

Balaclava Mines was up 13cents at $1.08. The company is carrying out exploration programs on several of its gold projects in Peru. At the Huilacollo project, trenching is defining the Cerro Andamarca prospect in preparation for reverse-circulation drilling, while, at the Chamis property, recent surface sampling identified a mineralized area associated with a porphyry intrusion measuring 400 by 350 metres. Significant results ranged from 30 metres grading 0.52 gram gold per tonne to 20 metres of 1.15 grams.

Rupert Resources climbed to $2.60, a gain of 45cents, on speculation that the first hole of a 5-hole due diligence drilling program on the former-producing Crown diamond mine in South Africa was close to intersecting the projected kimberlite “bulge.” Rupert can earn up to a 75% interest in the subsurface mineral rights of the mine and up to a half interest in a tailings reprocessing project.

Auspex Minerals was up 25cents at $1.05. The company holds a 30% interest in the Portuguese Estacao project, where recent drilling cut 70 metres true width averaging 4.57% zinc, 1.63% lead and 0.16% copper, plus 0.23 gram gold and 45.8 grams silver. International Vestor Resources, which closed up 3cents at 75cents, along with Toronto-listed Redfern Resources and Cumberland Resources, each hold a 10% interest.