STOCK MARKETS — Western stocks drop slightly despite modest rise in VSE — Kalahari, Abacus, Kensington among juniors to have made modest gains

The Vancouver Stock Exchange composite index was up just 1.3 points, or 0.2%, over the report period ended Feb. 17, to close at 632.31. The mining index slipped 4.79 points, or 0.9%, to finish at 519.22, and the combined value of the Alberta Stock Exchange was off 18.51 points, or 0.8%, closing at 2162.13.

With a growing portfolio covering 2.5 million acres of ground in Mexico’s Zacatecas state, Kalahari Resources was in play over the week, trading as high as $1.22 before falling back to close at $1.05, for a 16cents gain.

Describing it as the poor man’s Western Copper, U.S.-based newsletter writer Robert Bishop says Kalahari’s share price may double over the next few months (from the 96cents level).

Argentina Gold closed down 13cents to 75cents after releasing assay results from four new drill holes on its 60%-held Veladero gold-silver project in northwestern Argentina, where a US$4.8-million exploration program is in progress. Selected highlights include a 109-metre intercept of 1.27 grams gold and 17.3 grams silver per tonne, starting at an 89-metre depth.

Toronto-listed Barrick Gold holds the other 40% interest in the project.

Abacus Minerals rose 10cents to 41cents. The company announced it had submitted applications for two exploration concessions adjoining the Neves Corvo base-metal mine property in southern Portugal. Abacus has entered into a joint-venture agreement with Arizona-based Phelps Dodge, which can earn a 70% interest in the concessions by spending US$7 million on exploration.

Alberta-listed partners Montello Resources and Redwood Resources are in the midst of a drilling program that will initially test 18 geophysical targets in the Jazz prospect area, southeast of the Buffalo Hills kimberlite discovery in Alberta. A total of six targets have been tested to date.

Montello closed up 6cents at 66cents, while Redwood slipped 5cents to $1.30.

Trivalence Mining has begun a 9-hole delineation drill program on the K-7 kimberlite pipe at the 1,000-sq.-km Aredor diamond concession in Guinea, West Africa. The company, which holds a 59.5% stake in the project, closed up 7cents to $1.31.

Kensington Resources jumped 22cents to finish at 51cents. Fresh from a December reorganization, Kensington has arranged a $400,000 private placement of units at 30cents each. The company intends to use part of the proceeds to fund various exploration programs in Saskatchewan.

After seeing its share price double to 18cents, Nu-Dawn Resources reported that there have been no material changes in the company’s affairs of late.

The company is actively pursuing financing for proposed exploration programs on its Costa Rican and Canadian properties.

Patricia Mines was up 2cents at 19cents. The company completed the final $625,000 payment on the Island gold property near Wawa, Ont. Funds for the payment were obtained from a fully subscribed $2-million public offering of 13.3 million shares at 15cents each.

Westmount Resources dropped 9cents, closing at 8cents following the release of initial assay results from the first two holes of a 4-hole program on its McArthur Lake property near Timmins, Ont. The company is planning to seek shareholder approval at an annual meeting in April to consolidate its shares on a 2-for-1 basis and change its name. In addition, the company has negotiated a $600,000 private placement of 4 million special warrants at price of 15cents each.

Cross Lake Minerals emerged from its holding pattern and climbed to $1.78 before pulling back to $1.55, for a gain of 39cents. The company is currently engaged in a 5,000-metre drilling program on the 100%-owned Sheraton-Timmins volcanogenic massive sulphide property, east of Timmins.