MINING MARKETS AND INVESTMENT NEWS – WESTERN MARKETS — ASE outshines Vancouver as golds make modest gains

The Vancouver Stock Exchange composite index dropped 12.98 points to close at 619.53, whereas the mining index fell below the 500 mark, to 490.01, for the report period ended April 28. However, the combined value of the Alberta Stock Exchange edged up 1.53 points to 2,261.73.

Foran Mining gained 42cents to close at $2.20. The company signed a $10-million deal with Toronto-listed Cameco and an affiliate of privately held Billiton Metals Canada to earn a 100% interest in the McIlvenna zinc-copper deposit in northeastern Saskatchewan. The deposit reportedly hosts 13 million tonnes averaging 4.95% zinc and 1.26% copper, with significant precious metal credits.

Vetta Ventures added 28cents to close at 75cents. Vetta and joint-venture partner Rorex Exploration hold a combined 60% interest in the Minera Fuerte Mayo project in Chihuahua state, Mexico. At the Brenda mine, a program of sampling and mapping, both on surface and underground, is attempting to define drill targets to test vein structures to a depth of 300 metres. Rorex issues jumped 17cents to close at 52cents.

International Tournigan rose 18cents to close at 91cents. The company, whose shares recently resumed trading on the VSE, has a deal with Taurus Capital Markets and Global Securities to raise $7 million through the sale of special warrants. Trading of Tournigan’s issues where halted in March following the announcement that it had entered into an option agreement to acquire a 100% interest in the Berenguela project in southern Peru.

Peruvian Gold gained 2cents to close at 70cents, while Gabriel Resources lost a nickel to close at 70cents. The companies terminated a proposed merger following a British Columbia Securities Commission ruling that Peruvian required shareholder approval for the move.

El Misti Gold dropped 2cents to $1.74 following the announcement that drilling on the Sinchao epithermal gold-silver-copper zone had begun. The first phase of the program calls for 10,000 metres of drilling.

Mandorin Goldfields signed a deal with Donner Minerals outlining the companies’ 1998 exploration program and budget for the former’s South Voisey’s Bay nickel-copper prospect in Labrador. The proposed work program includes more regional and detailed gravity surveys, as well as 20,000 metres of diamond drilling. Exploration is scheduled to begin in mid-May.

Mandorin remained unchanged at 19cents, whereas Donner dropped 13cents to $2.65.

Molycore Gold, Verdstone Gold and privately held Sota Mining Group are planning a joint-venture operation for the Crow-Rea property, near Summerland, B.C. Sota will act as operator. Preliminary reserves, which are said to be amenable to open-pit mining, stand at 500,000 tonnes grading 0.317% MoS2.

The companies plan to process a 10,000-tonne bulk sample. Molycore rose 6cents to close at 28cents, whereas Verdstone shed 3cents to close at 17cents.