STOCK MARKETS — Speculation weakens western resource index

The Vancouver Stock Exchange composite index slipped 18.11 points over the report period ended Sept. 10 to close at 1,215.54. The resource index fell even farther, dropping 94.07 points to finish at 2,346.81.

The slump in the resource index follows a weakening of bullion prices, which was caused by concerns that the International Monetary Fund is planning to sell some of its

gold reserves.

Alberta-listed Gitennes Exploration surged to a high of $4.65 before settling back at $3.40, a gain of $1.30. Since announcing preliminary sampling results from the Virgen gold property in northern Peru, the company has attracted quite a following.

In the meantime, Gitennes and partner Alberta-listed Tanqueray Resources are optioning to Placer Dome up to a 60% interest in their jointly held TQY gold property in the Northwest Territories. Tanqueray closed down 5 CENTS to 83 CENTS in light trading.

The first phase of a widely spaced, 9-hole drill program on the Soup gold property in northern British Columbia tested the northwestern side of the Saddle Gully zone.

Results include 8.5 metres of 7.25 grams gold per tonne between a depth of 51.1 and 59.6 metres, and 12 metres of 8.29 grams between 59.6 and 71.63 metres. Vital Pacific Resources, which holds a 74% interest and an option to increase its interest by 16%, tacked on 8 CENTS to close at 47 CENTS. Athlone Resources, which holds the remaining interest, closed up 9 CENTS at 39 CENTS.

Halted at the request of the company since mid-March, Carson Gold resumed trading on Sept. 9, and reached a high of $3.50 before falling back to $2.45, up 77 CENTS. A special shareholders meeting, called for Oct. 10, will ratify the proposed acquisitions of Branch Energy, China Diamond and the assets of Yunnan Mining. In order to reflect its newfound interest in diamonds, the company plans to change its name to DiamondWorks.

Pacific Comox Resources dropped 38 CENTS to close at 57 CENTS on the release of exploration results from the Adansi Asaasi gold concession in Ghana. The company completed 12 diamond drill holes and seven twin reverse-circulation holes into the Chirebroso quartz vein zone.

In addition to an adit that has been advanced 8 metres to date, a 26-hole, 2,000-metre drill program has begun on Peruvian Gold’s El Encanto gold porphyry prospect in northeastern Ecuador. Peruvian, which can earn a 60% interest in the 21,000-ha property, was up 49 CENTS at $4.65.

On anticipation of exploration results from the company’s 80%-held Pt. Karya Bukit Utama gold-silver property on the Indonesian island

of Sumatra, Consolidated Silver

Tusk Mines rocketed to a high of $9.80 before closing at $8.90, a jump of $2.95.

A second hole on the Sewell Brook property in northern New Brunswick, in which Chapleau Resources can earn a half interest from Toronto-listed NovaGold Resources, encountered four mineralized zones. Chapleau slipped 18 CENTS to finish at $2.05.

Donner Resources closed up 50 CENTS on news that Toronto-listed Teck has agreed to acquire 1.4 million units of Donner at a price of $1.25 per unit, for proceeds of $1.75 million.

Partners Noront Resources and Golden Trump Resources released encouraging results for the first two holes of a 4-hole drill program recently completed at the Okak Bay 2381 property, 80 km north of Voisey’s Bay.

Noront jumped to a high of $1.02 before dropping back to 78 CENTS — an increase of 28 CENTS. Golden Trump reached a high of $1.62 before closing at $1.31, a gain of 51 CENTS.