MINING MARKETS & INVESTMENT NEWS — WESTERN MARKETS — Madison, Redwood bright spots in glum market

The Vancouver Stock Exchange composite index dropped 4.12 points, or 1%, to close the Nov. 11-17 report period at 401.03. The mining index slipped below the 300 mark, falling 7.57 points, or 2.5%, to finish at 292.98. Meanwhile, the combined value of the Alberta Stock Exchange edged up 5.17 points, or 0.3%, to close at 1,788.11.

Madison Enterprises jumped 25 cents to close at $1.95. The company announced that the long-anticipated resource calculation for its Mt. Kare gold project in Papua New Guinea was nearing completion. Madison holds a 65% interest in the project, which is only 15 km from Placer Dome’s Porgera mine. Watts Griffis & McOuat is preparing the resource calculation, which is expected in late November.

Alberta-listed partners Montello Resources and Redwood Resources unveiled caustic fusion results from the Phoenix kimberlite on their Legend property in northeastern Alberta. Five diamonds were recovered from a 380-kg sample of drill core. Two of the diamonds were macros (that is, with at least one dimension greater than 0.5 mm). Drilling is expected to resume in early 1999. Montello lost 4 cents to close at 37 cents, while Redwood jumped 15 cents to finish the week at 70 cents. Kennecott can earn a 60% interest in the property; ownership is currently divided 70-30 between Montello and Redwood.

Argentina Gold dove 32 cents to close at $2.16. The market is eagerly awaiting results from holes recently drilled at the Amable target, on the company’s 60%-owned Veladero property in San Juan province. A diamond drill rig is expected to begin work by the first week of December in an attempt to check previously drilled holes and aid in refining the geological model. Toronto-listed Barrick Gold holds the remaining 40% interest.

Winspear Resources gained 4 cents and closed at $2.17. The company negotiated a private placement for a total of 5 million units worth $10.6 million. The placement will consist of 2 million non-flow-through units and 3 million flow-through units. Proceeds will be used to fund an exploration program on the company’s 67.8%-owned Camsell Lake property in the Northwest Territories. Toronto-listed Aber Resources holds the remainder.

Orko Gold found a dime and closed at $1.30. The junior arranged a private placement of 600,000 shares priced at $1.15 each for total proceeds of $690,000. The funds will be applied to exploration and acquisition costs related to the Ortiga, Valle del Cura and Fierro properties in Argentina. Orko can earn a 60% stake in the properties from TNR Resources. The latter lost 2 cents to close at 27 cents.

Minera Andes closed the week at $1.05. The results of chip and float sampling on the El Pluma/Cerro Saavedra property in Argentina outlined a new zone of mineralization. Forty-five samples taken from the Huevos Verdes zone yielded grades ranging from 0.01 to 18.8 grams gold per tonne.