High-grade northern assays spark interest in San Andreas

The Northwest Territories once again dominated investor interest on western markets, although this time it wasn’t diamonds and gold generating all the excitement. San Andreas Resources reported some high-grade assays from its first few holes drilled at its recently acquired Prairie Creek mine property 300 miles west of Yellowknife, N.W.T.

The property contains a developed mine and mill that was mothballed just before startup when the bottom fell out under those famous silver speculators, the Hunt brothers of Texas, who were financing the project in the early 1980s.

The best result from three recent holes was a 30.8-ft. intersection averaging 23.26% lead, 23.25% zinc, 11.55 oz. silver per ton and 0.84% copper. The company says the drilling is increasing tonnage, with grades higher than the two million tons of reserves previously identified on the property. Mining analysts point out that because the project is only accessible by winter road and is near a wilderness preserve, the project will need more of this high-grade tonnage to be economic at current metal prices. At noon today, July 22, San Andreas reached a high of $5.50, compared with $3.50 a week ago.

In general, trading on the Vancouver Stock Exchange was moderately active at presstime. The resource index at 551.83 reflects an increase of 3.62 points from last week, while the composite index at 582.07 was off 9.33 points from a week ago.

Trading on the Alberta Stock Exchange was also relatively busy, with Argus Resources, involved in a diamond prospect in the Lac de Gras region of the Northwest Territories, the top trader. The ASE’s combined values index stood at 834.61, an 11.18-point increase from last week.

Although no longer one of the more active issues on the VSE, the share price of Dia Met Minerals (VSE) remains strong at $14.12, up 25 cents from a week ago. This junior sparked the initial interest in the Lac de Gras region where it is involved in a diamond exploration joint venture operated by BHP Minerals Canada.

Tenajon Resources was among the more active issues this week, ahead 9 cents at 26 cents. The company is exploring a property adjacent to the Hemlo-Gold Giant Snoball property, a new “Eskay-type” polymetallic discovery north of Eskay Creek in northern British Columbia. However, speculation is growing that the company has an interesting new venture in the works, as it is no secret it has been actively looking at new opportunities.

Goldbelt Resources was off 4 cents at 80 cents after a national newspaper reported that its rights to the Udokan copper project in Russia might be in jeopardy because of political changes in the country since the original agreements were signed. The company hopes its rights will be “grandfathered,” but says it will be in a favorable position should a tender proceed on the project. Goldbelt is also involved in a gold tailings project in Kazakhstan that is proceeding on schedule.

A recent public offering netted $3.2 million for Chase Resources which plans to use the proceeds to further develop the Taysan copper-gold project in the Philippines. The company holds an option on 59.9% of the shares of a Philippine company which in turn owns 100% of the project. A feasibility study is expected to be completed within 18 months.

Coral Gold is still on the most active list, although the issue slipped 2 cents to 65 cents. Amax Gold is currently drilling Coral’s Nevada gold property strategically located adjacent to the Pipeline gold discovery made by Placer Dome on its 60% owned Cortez joint venture project in the Crescent Valley.

A boost of 11 cents to 89 cents was gained by Adrian Resources which owns part of the Eskay Creek deposit because of a staking gap. The junior is also active on a large copper project in Panama which it optioned from Minnova.