STOCK MARKETS — Market action focuses on players at

Western markets continued to charge ahead during the period ended Feb. 2, posting a number of successive new highs not seen for more than two and a half years.

The Vancouver Stock Exchange composite index added more than 24 points to finish at 714.55, while the resource index gained 30.84 points and closed at 747.55.

Market action continues to focus primarily on issues active in the Kilometre 88 area of Venezuela. Diamond-related activity remains relatively quiet as investors await the start of winter drilling programs.

International Kengate Ventures entered the Venezuelan gold rush with a splash, announcing it had settled the terms of an agreement to acquire 100% of the issued shares of the Venezuelan company which owns the Oro Uno gold and diamond concession in the Kilometre 88 region.

The acquisition represents an effective change of control of the company to the Venezuelan group that owns the concessions.

Following a trading halt, International Kengate more than doubled in price, trading as high as $2.10 before back-tracking to finish the week up 73 cents at $1.73.

Venezuelan Goldfields, which had previously reported it had an exclusive option to negotiate a joint venture on the Oro Uno property, dropped to $9.75 before the company requested a trading halt. Both Venezuelan Goldfields and International Kengate subsequently confirmed they will continue negotiations for a joint venture on the Oro Uno ground.

Trading in Venezuelan Goldfields was reinstated, leaving the issue unchanged during the period at $11. The company also announced the successful completion of a previously announced 1-million-share private placement at $10 per share.

The Oro Uno concession is contiguous to the northern boundary of Placer’s Las Cristinas gold property and has a reported preliminary reserve in the order of 12 million tonnes grading 4.35 grams gold per tonne.

Trading in Carson Gold was also halted at the request of the company, which subsequently announced plans for a proposed private placement of a maximum of three million units at $2.04 per unit.

Venezuelan Goldfields has the right to subscribe for up to 2.5 million of the units and on closing will nominate three members to Carson’s 6-member board of directors.

Carson and Venezuelan Goldfields currently have an agreement that gives Venezuelan Goldfields the right to be a joint venture partner (on a 60-40 basis) of any exploration properties Carson owns or acquires in the Kilometre 88 region.

At presstime, Carson had resumed trading with a $1.20 jump to the $3.60 level. Crystallex Resources recently commenced production, using an existing mill, at its Albino concession to the south and east of Placer’s ground at a rate of 150 tonnes per day.

Eurus Resource, which can earn a 50% interest in the concession, expects to begin a drilling program Feb. 7 with a minimum of 1,000 metres planned. Eurus is also reviewing the possibility of constructing a 400-tonne-per-day mill on the property.

Crystallex gained 60 cents to close at $4.80 while Eurus lost 7 cents to close at $2.22.

Tombstone Resources recently signed an option agreement to acquire a 100% interest in a number of properties in southern Venezuela, giving the issue more than a $1 boost to $2.05.

In return for 100,000 shares, Consolidated Newgate Resources acquired the right of first refusal on the purchase of any and all of the mineral property interests in Venezuela owned by FYC investments. FYC is a private British Columbia company which is negotiating to acquire several mineral property interests in the country. Consolidated Newgate finished up 33 cents at $1.33. Prime Equities International gained some ground, finishing up 43 cents at $2.58 after announcing plans for a proposed private placement of up to $2 million in 2-year convertible debentures. Murray Pezim is back in the saddle at Prime Equities, and appointed several associates to the board following the resignations of Chet Idziszek, James Stewart and William Campbell.