Decline in oil and gas pulls down CDNX

Vancouver — Canada’s junior exchange lost ground over the week ended Aug. 28. Oil-and-gas-related issues led the way with a 3.7% plunge in the sector. The Canadian Venture Exchange composite index fell 32.64 points, or 1.06%, to finish the week at 3,048.06. The mining index managed to post a small gain of 13.32 points, or 0.2%, to close at 7,407.53.

Sultan Minerals was the week’s volume leader, with just over 3 million shares crossing the floor. The company recently closed a $150,000 financing aimed at expanding the drill program over the Kena gold property, near Nelson, B.C. The company ended the week at 20, up 1.

A renegotiated agreement over the Salamandra gold property in Mexico failed to motivate investors in National Gold. The junior remained steady at 15 on a volume of 2.3 million shares. The deal was originally inked in December, but the junior has had trouble coming up with payments for the $10.5-million purchase. The new contract has the first payment due by the end of 2004 and is tied to the price of gold.

Having recently raised $1 million, Poplar Resources closed up 3 to 30 on just over 1 million shares. The company’s 65%-owned subsidiary is exploring the Bottenbacken platinum-palladium project in central Sweden.

Donner Minerals added 2 to its value and closed at 17 with 892,000 shares changing hands. The company has a 76.69% interest in the SVB Nickel company, which holds ground in South Voisey’s Bay, Labrador.

Montello Resources announced it is proceeding with its geochemical program on the Lempriere and Pipeline properties in southeastern British Columbia. The company ended the week unchanged at 16 with 747,000 shares traded.

Brasilca Mining lost 2 and closed at 12 on a volume of 663,000 shares. The company’s joint-venture partners, Toronto-listed Teck-Cominco and Inco, have completed a program of soil sampling over a portion of the Tucuma copper-gold property in Brazil. About 1,550 soil samples were collected along 100 line km of cut grid. A 1,500-metre drill program is to begin shortly.

A nice percentage mover, Gold Canyon Resources gained 13 to close out the week at $1.25. The junior announced the discovery of three gallium-bearing zones on the Cordero property in Humboldt Cty., Nev.

Kelowna-based Cantex Mine Development continued to trade heavily, with little impact on its share price. The Charles Fipke-led company ended the week flat at 8 on a volume of 621,000 shares. Cantex recently tabled an update on its geochemical activities over the Wadi Qutabah nickel-copper-cobalt-platinum-palladium prospect in Yemen.

Kenrich Mining traded 526,000 shares and still suffered a 52-week low of 3. The junior holds the Corey property, near the Eskay Creek polymetallic mine in British Columbia, and is evaluating several other properties for possible joint ventures.

New Blue Ribbon Resources tacked on 1 to finish at 8 on the exchange of 496,000 shares. The Edmonton-based junior has been funding BHP’s work on the Moose diamond property in Manitoba.