STOCK MARKETS — Composite and resource indexes hit new lows

The Vancouver Stock Exchange composite and resource indexes bounced off new 52-week lows for the report period ended Nov. 29.

The composite index hit 750.04 before closing at 755.48, down 7.5 points. The resource index fell 29.91 points to finish at 1,213.55.

Trading in Sway Resources was halted briefly in mid-November at the request of Sway’s directors, who learned of a verification problem for values returned from the first hole drilled at its Franklin Camp properties in southern British Columbia.

Sway was advised by Chemex Labs that the gold assay results previously released (on Oct. 24) were incorrect as a result of contamination encountered during sample preparation. Orequest Consultants, which was retained to conduct an independent investigation, confirmed the lab’s sampling preparation error.

Upon resumption of trading, Sway opened at 18 cents to close at 20 cents, dropping 30 cents. The company intends to continue its exploration program on the Franklin Camp properties, as well as other properties within the Greenwood mining division.

Carissa Mining continues to climb, jumping 15 cents to finish at 43 cents. The company will be proceeding with a second phase of exploration at its Carissa mine in South Pass City, Wyo. Carissa is earning a half interest from Hol-Lac Gold Mines by spending US$475,000 over two years. Drilling intersected at least two mineralized gold zones east and west of the mine and beneath old underground workings.

An agreement that allows Massey Mercantile to explore South African Diamond Holding’s diamond concessions in Venezuela gave a 5 cents boost to Massey’s issue, which closed at 45 cents. An initial payment of 50,000 shares and 125,000 warrants is required. If exploration proves encouraging, Massey can acquire a half interest by providing South Africa Diamond with US$500,000 worth of free-trading shares.

Silverspar Minerals, down 95 cents, closed at a year-long low of $2. The company said there were no material changes in its affairs. Silverspar is attempting to secure long-term contacts for the supply of metallurgical fluorspar from the Defence National Stockpile Centre. The supply would provide several years of low-cost feed to its Salem plant prior to developing the Campbell deposit in Kentucky.

The acquisition of the Lista Negra silver property in Mexico’s Sonora state did little for Minefinders, which dropped 30 cents to close at $3.70. A silver-bearing manganese oxide zone measuring 4,900 ft. in length and 600 ft. in width returned hammer-percussion drill samples as high as 23.05 oz. silver per ton. Diamond drilling will begin shortly.

War Eagle Mining finished up 50 cents at $2.85. The company has completed a 22-hole reverse-circulation program on its La Fortuna gold property in Mexico. Assays are pending for the program.

On the diamond front, War Eagle is involved in the Candle Lake joint venture with Great Western Gold in Saskatchewan and is seeking investors in England and Europe.

Wealth Resources lost 4 cents to close at 10 cents. The company is conducting a 1,000-ft. diamond drill program near Cranbrook, B.C. at its Sawmill Creek-Perry Creek properties. An open-pit mine adjacent to the area being tested produced 1,725 tons averaging 0.25 oz. gold.

Canadian Golden Dragon Resources boosted upwards to a high of 75 cents before closing at 60 cents, a jump of 38 cents. The company reached a $600,000 debt settlement and entered an agreement with investors to sell a 12% convertible promissory note in the amount of $200,000. Canadian Golden has entered an option to acquire a half interest of a 195-acre property in northwestern Quebec, together with Cyprus Canada. Ground geophysics, followed by drilling, is planned for this winter.