STOCK MARKETS — Vancouver composite drops below 1,000, ASE off as well — Mexican explorers Hemlock and Francisco fare well as El Misti Gold continues slide

The Vancouver Stock Exchange composite index lost 10.51 points over the report period ended June 3 to close at 990.08. The combined value of the Alberta Stock Exchange was also off, shedding 19.81 points to close the week at 2,503.22.

Oliver Gold rebounded slightly after losing ground in the previous week, gaining 13 cents to close at $1.48. The African explorer slid following news of partial results from an 11-hole program of infill and stepout diamond drilling on the Main zone of the Segala project in Mali, West Africa.

The program, which tested the zone for continuity and downplunge potential, returned: a 21.9-Metre-long interval grading 3.6 grams gold per tonne (including 6 metres of 6.9 grams and 3.5 metres of 5.4 grams gold) and 20.7 metres grading 3.8 grams (including 7.8 metres of 6.2 grams and 8.1 metres grading 3.3 grams). Oliver will calculate a new resource calculation once it receives final assays.

Ballad Enterprises jumped 90 cents to close at $1.25. The company announced the acquisition of the Peruvian subsidiary of TVX Gold for 300,000 shares, US$30,000 in cash and US$300,000 in exploration spending on the properties within nine months.

The assets of TVX Minera del Peru include 35 concessions on 17 non-contiguous properties covering 31,100 ha. TVX has the right to buy a half interest in any of the properties by paying Ballad an amount equal to its exploration spending.

El Misti Gold continued its downward trend, losing 66 cents to end the report period at $1.84. Shares have lost half their value since the company announced drill results from the San Nicolas gold-silver mine in northern Peru.

Sixty holes have been completed in the reserve definition program. El Misti has an option to acquire a 100% interest in the mine, which has an estimated geological resource of 6.2 million tonnes grading 3.4 grams gold.

Investors holding Mar-West Resources followed the old adage “Buy on rumor, sell on news.” Mar-West closed down 10 cents at $2.58 on a volume of 2.8 million shares following the release of results from eight more reverse-circulation holes, which confirmed the continuity of gold mineralization on the Sinter zone of the company’s joint-Ventured San Martin concession in Honduras.

Of 23 holes, 22 returned ore-grade intersections over minable widths.

The stock earlier reached a high of $3.20 on anticipation of the results. The best intercepts included: 29 metres grading 1.21 grams gold in hole 16; 30.5 metres of 1.28 grams in hole 18; and 21.4 metres of 1.35 grams in hole 19.

Hole 21 intersected 45.8 metres of 1.53 grams, whereas hole 23, which was drilled vertically, returned 18.3 metres, from surface, grading 1.26 grams gold.

Curion Ventures, which holds the remaining 20% of San Martin, was off 12 cents to finish at 73 cents.

Mexican explorer Golden Hemlock Explorations was up after a “buy” recommendation from a mining analyst. The company, which recently finished the first phase of exploration at its 3,500-ha San Jose de Gracia property in Sinaloa state, gained 16 cents to close at $1.26. Golden Hemlock has made its final payments and now holds a 100% interest in the property.

Francisco Gold, another Mexican explorer, posted a gain of 70 cents to close at $25.20 after climbing as high as $26.20 during the week. The third phase of drilling at its Sauzal gold project in Chihuahua state is under way. The company is using proceeds from a $29.5-Million financing to speed up exploration.

TKO Resources was the most active of all mining issues, with 6.2 million shares changing hands over the week. The company, which is planning drill programs on gold prospects near Grand Forks, B.C., and Nevada’s Battle Mountain trend, agreed to acquire the rights of American Eagle Resource to 20,000 acres of oil and gas leases in Deuel Cty., Neb. TKO was up 14 cents to close at $1.29.