CDNX continues to set record highs

Canada’s junior stock market index ignored fears of higher interest rates, posting another record close. The Canadian Venture Exchange gained 204.45 points, or 6.08%, over the week ended Feb. 23 and closed at an all-time high of 3,567.95.

Benefiting from speculation that certain mining companies will change business venues to become high-tech companies, the newly launched mining index climbed 177.94 points, or 5.27%, to close at 3,555.01.

Mill City International tacked on 14 to close at 24, with 7.6 million shares changing hands over the week. The junior has agreed to acquire on-line diamond broker e-carats.com for 4.7 million shares. The site will enable the public to buy polished diamonds on-line at wholesale prices. Meanwhile, Mill City is set to begin drilling its Yamba Lake diamond project in the Northwest Territories. Toronto-listed SouthernEra Resources is operating the project.

Altoro Gold finished the week at 57, up 2. The junior announced it has sold a 60% stake in the Pedra Branca platinum-palladium project in Brazil to the Hunter-Dickinson group in return for US$7 million in exploration funds to be spent over four years.

Abaddon Resources saw heavy trading over the week with 6.1 million shares trading hands. The junior closed at 26, up 9 from the previous report period. Exploration is set to begin on the Cypress-Abaddon-Noranda-Falconbridge property in the Lac Rocher area of Quebec. In mid-February, majors Noranda and Falconbridge agreed to earn a half-interest in the property. The area become a focus of exploration in January 1999, when junior Nuinsco cut 3.2 metres grading 10.8% nickel. A geophysical survey is planned.

Pan Asia Mining jumped 14 to close at 35, with 2.2 million shares traded. The stock has been extremely volatile since the company announced the upgrade of the 701 diamond mine in China. The work entails developing a main decline shaft and upgrading the processing plant to 100,000 carats per year.

Winspear Resources finished the week at $2.72, up 59, with 2.9 million shares changing hands. Investors have jumped back on the diamond bandwagon now that Winspear has resumed advanced exploration work at its Camsell Lake joint-venture property in the Northwest Territories. The junior diamond explorer is seeking a TSE listing and plans to collect a 20,000-tonne bulk sample from its prospective Snap Lake kimberlite.

Gabriel Resources added 15 to its value and closed at $2.75, with 2.8 million shares traded. The gold explorer has proposed to divide its mineral resource projects into two separate public companies. The reorganization will allow the company to carry out a bankable feasibility study on its Rosia Montana property in Romania, as well as allow its other exploration assets to be advanced.

Minera Andes lost 30 to close at 50. Assay results from the first four holes of its 6-hole program at the Minera Huevos Verdes project in southern Argentina were released. All four holes intersected narrow high-grade gold-silver mineralization. The best intercept cut 3.9 metres (true width) averaging 9.3 gram gold and 296.4 grams silver per tonne.

Montello Resources and AVL Information Systems have formed a joint venture marketing corporation to sell and promote an “on-line vehicle tracking system.” Montello’s issue jumped 9 to close at 39.