STOCK MARKETS — News drought leaves western markets adrift

A general lack of market-moving news left western indexes drifting over our report period ended Dec. 7. The Vancouver Stock Exchange resource index added 6.67 points to close at 1,536.73 while the broader composite index slipped 1.58 points to settle at 1020.44.

Perhaps upward rumblings in gold bullion will provide some spice for the market in the near future. Mid-way through the trading session on Dec. 8, gold was trading up over US$6 per oz. at US$383.90.

News that TSE-listed Ashton Mining of Canada is postponing drilling on the Cross Lake property in the Northwest Territories because of severe weather conditions and minimal daylight hours hurt partner Tenajon Resources. Tenajon, which has a 26% diluted interest in the project, closed down 27 cents at 66 cents.

Toronto-listed Pure Gold Resources, which has a 24% interest, slipped 3 cents to close at 36 cents while Ashton remained unchanged at $1.70. Rumors of a possible business combination between participants in the DHK property in the Lac de Gras area of the Northwest Territories continue to circulate.

With seven companies involved — Kennecott Canada, Dentonia Resources, Kettle River Resources, Horseshoe Gold Mining, Aber Resources, SouthernEra Resources and Commonwealth Resources — the task of coming to an agreement with which everyone is happy is likely to be difficult.

Additional drilling results from the groups Tli Kwi Cho (DO-27) pipe came to light at the Northwest Mining Convention in Spokane, Wash. An aggregate sample of 1,126.2 kg from 12 unreleased holes returned 209 macrodiamonds and 721 micros.

Previously released DO-27 holes returned 95 macros and 250 micros from an aggregate sample of 296.4 kg. This total does not include Hole 22 which returned three macros and 14 micros from 160 kg of core. So far, all reported drilling on the DO-27 pipe returned 349 macros and 1,111 micros from 1,739.6 kg of core.

Dentonia added 45 cents to close at $5 and Kettle River gained 38 cents at $9, while ASE-listed Horseshoe jumped 50 cents to $5.

Canso Explorations added a healthy 33 cents to finish at 76 cents. The company is completing a $500,000 private placement to Prime Equities International at 33 cents per unit, plus a further private placement of 320,000 units at 47 cents for gross proceeds of just over $650,000. Prime, which will control Canso after the 33 cents placement, plans to use the company as its exploration vehicle in Quebec.

Exploration is under way at the Peggy property in Ecuador. Curlew Lake Resources, which is earning a half interest from Ag Armeno Mines & Minerals, is constructing roads and drill sites in preparation for drill-testing of many large copper-gold anomalies. Curlew jumped 28 cents to finish at 87 cents, while AG Armeno lost a dime to $1.35.

Golden Quail Resources and Golden Hemlock Exploration both gained ground after releasing drilling results from their joint venture in San Bernardino Cty., Calif.

The first hole in this year’s program intersected 100 ft. grading 0.19 oz. gold per ton from 355-455 ft. The hole is about 250 ft. south of Hole 89-3, which intersected 350 ft. grading 0.13 oz. Golden Quail traded as high as $1.10 before settling for a 22 cents gain at 95 cents, while Golden Hemlock closed up 20 cents at 80 cents.

Namibian Minerals slipped a quarter to $3.25. The company has launched a US$3-million survey and exploration program at its marine diamond concessions off the coast of Namibia.

Partners Madison Enterprises and Adrian Resources have discovered new copper-gold anomalies on their Belencillo property in Panama. The companies expect to drill-test the targets during the latter part of January, 1994. Adrian edged up 12 cents to $2.17, while Madison added 8 cents to close at 90 cents.

Gulf International Minerals managed to ship 678 tons of gold concentrate from the Kansai mine in Tajikistan to Japan. Gulf closed up 9 cents to 54 cents.