BC election triggers rally on CDNX

The recent election campaign in British Columbia, which left little doubt that the ruling New Democratic Party was headed for oblivion, gave western markets a boost over the report period ended May 15. The Canadian Venture Exchange composite index tacked on 32.87 points, or 1%, to finish the week at 3,181.18. The mining index gained 111.62 points, or 1.7%, and closed at 6,611.86.

New Blue Ribbon Resources lost some of the previous week’s gains as investors waited for drill results from the Moose diamond property in Manitoba. The Edmonton-based junior’s stock had doubled on news that joint-venture partner BHP had hit “significant” sulphides on the first two holes drilled at the property. New Blue Ribbon lost a nickel and closed the week at 29, with 2.5 million shares crossing the floor.

IBI traded heavily but held steady at 5, with 2.5 million shares changing hands. The junior mining and investment company is developing its wholly owned vermiculite project in Uganda. Vermiculite is a low-cost industrial mineral that resembles mica in appearance. It is used in hydroponics for growing plants, as insulation, as a component of cement/concrete, in brake-liners and for making boards. It is even used as a carrier for vitamins.

Madison Enterprises remained flat at 11, with just over 2 million shares traded. The company holds a 90% stake in the Mt. Kare gold exploration project in Papua New Guinea. Since 1996, $31 million has been spent on the property, completing 34,600 metres of diamond drilling.

Atacama Minerals lost 14 and closed the week at 51 on a volume of 1.6 million shares. The company says production is under way at its Aguas Blancas iodine project in northern Chile. The first iodine shipments were made in April. Operations will gradually be increased over the next few months until production rates reach 60 tonnes per month.

Inca Pacific Resources attracted investor attention, moving up 2 to 36 with 1.6 million shares traded. The junior’s joint-venture partner has launched a US$3-million exploration program on the promising Magistral copper-molybdenum property in Peru.

Goldcliff Resources jumped 8 and closed at 19 on a volume of 1.4 million shares. The company recently acquired 700 ha in the past-producing Hedley Basin area of southern B.C. Goldcliff also just added $125,000 to its coffers through a non-brokered private placement.

GGL Diamonds tacked on 8 and closed at 26 with 1.2 million shares traded. The company received results of an indicator mineral sample program completed by De Beers Canada Exploration on its Doyle Lake diamond property in the Northwest Territories. The results will be analyzed to select drill target locations for a drill program scheduled for the end of the month.

Nevada Pacific Gold lost a penny and closed at 23 with 1.2 million shares traded. The big volume was the result of a pre-arranged disposition of shares held by insiders. The insiders will participate in a private placement.