MINING MARKET & INVESTMENT NEWS — WESTERN MARKETS — Signs of bear market visible on western horizon

In recent months, the Vancouver Stock Exchange indices have been wandering deeper and deeper into bear territory. The trend continued during the report period ended Aug. 18: the composite index lost 7.41 points, or 1.6%, to close at 449.08, and the mining index 4.11 points, or 1.3%, to end the week at 314.38. Meanwhile, the combined value of the Alberta Stock Exchange slid 15.79 points, or 0.83%, to close at 1,896.42.

Mar-West Resources caught the market’s attention with plans to merge with Toronto-listed Glamis Gold. Glamis will acquire all of the issued and outstanding shares of Mar-West. In return for two shares of Mar-West, each of that company’s shareholders will receive either one share of Glamis or 0.8 of a share plus 96 cents. Mar-West soared 54 cents on the news, closing at $1.73.

Balaclava Mines climbed 24 cents and closed at $1.14. The company announced that drilling at its El Corazon project in Ecuador is to begin Aug. 25.

Winspear Resources jumped 27 cents to close at $1.26. The diamond explorer is continuing definition drilling at the Snap Lake project in the Northwest Territories. The company can increase its interest in the project to 68%; the remainder is held by Toronto-listed Aber Resources.

Bell Coast Capital lost 19 cents to finish the week at 39 cents. The company released results from its drilling program at the Copalquin property in Durango state, Mexico. Drilling was designed to test the precious metal mineralization at the El Cometa zone. Significant results include: hole 12, which cut 4 metres grading 0.532 oz. gold and 10.8 oz. silver per ton; hole 13, which returned 3 metres of 2.27 oz. gold and 21.43 oz. silver; hole 9, which intersected 12.1 metres averaging 0.057 oz. gold and 2 oz. silver; and hole 10, which cut 6.9 metres of 0.49 oz. gold and 10.3 oz. silver. Drilling to date indicates that the higher-grade zone at El Cometa is several metres thick and that the shoot may be sub-horizontal, owing to low-angle faulting.

Grayd Resources gained a dime to close at 75 cents on news of positive drill results from its wholly owned Dry Creek property in Alaska. The company has been drilling an ancient sedimentary basin next to a felsic volcanic centre. Assay results from hole 60 indicate 48.8 metres (true width) grading 4.19% zinc, 0.1% copper, 1.96% lead, 71 grams silver and 0.48 gram gold. Additional drill results suggest that mineralization in the sedimentary unit strikes for at least 230 metres and goes to a depth of 110 metres.

Argentina Gold lost 9 cents to close at 52 cents. The company tabled a preliminary resource estimate for its Veladero gold-silver project in San Juan province, Argentina. The report estimates an indicated and inferred resource of 82.8 million tonnes grading 0.75 gram gold and 26.17 grams silver in the Filo Federico zone. In the NW Target zone, the indicated and inferred resource was pegged at 8 million tonnes grading 1.48 grams gold and 20.95 grams silver.

Cypango Ventures has appeared repeatedly on the VSE’s most active list in recent weeks. With Tanqueray Resources and Mill City International, it has inked a deal with Toronto-listed SouthernEra Resources, which can acquire a 51% interest in the Yamba Lake claim block in the Northwest Territories in return for spending $10 million on the property by December 2002. Once SouthernEra earns in, Tanqueray and Mill City will each have a 19% interest in the property, with Cypango holding the difference. Cypango lost a cent to close at 3 cents, Mill City lost 2 cents to finish at a dime, and Tanqueray remained steady at 9 cents.