MINING MARKETS & INVESTMENT NEWS — WESTERN MARKETS –Mining index pummelled as western markets slide

The Vancouver Stock Exchange composite index continued its slide into bear territory, losing 10.61 points, or 2.2%, to close at 478.36 over the holiday-shortened report period ended Aug. 4. The mining index also took a beating, dropping 7.58 points, or 2.2%, to close at 338.80.

Meanwhile, the combined value of the Alberta Stock Exchange lost 12.59 points, or 0.63%, to close at 1980.71.

Polymet Mining was among the few winners, gaining 21 cents to close at $1.11. The company started drilling its Dunka Road deposit in northern Minnesota, where about 6,000 ft. of reverse-circulation work are planned.

The company intends to collect 40-80 tonnes of mine-grade material for metallurgical testing.

Borneo Gold saw its shares tumble 46 cents, or 63%, to close at 27 cents.

Initial drill results from a 14-hole drill program at the Bunut gold project in West Kalimantan, Indonesia, returned no intercepts of economic significance. However, the company believes it has been drilling the edge of a large gold-bearing intrusive system and has yet to test several prospective targets.

Botswana Diamondfields lost 5 cents to close at 60 cents. The company announced that significant concentrations of kimberlite indicator minerals have been confirmed on the Tswapong block in Botswana. The indicator minerals correspond to an area with multiple kimberlite intrusions discovered by De Beers Consolidated Mines in 1994. A shallow prospect pit has been dug in order to analyze mineral concentrates for diamond potential.

Donner Minerals announced it is taking a 3-week break from drilling at South Voisey’s Bay, Labrador. During the hiatus, geological mapping, gravity surveys and pulse electromagnetic geophysical surveys will be continued in an effort to define drill targets. Donner lost 13 cents to close at 48 cents. Joint-venture partner Northern Abitibi Mining, which is listed on the Alberta exchange, remained steady at 25 cents. Meanwhile, Cypress Minerals and Major General Resources lost 4 cents and 1 cents, respectivey, to close at 16 cents and 30 cents.

Mar-West Resources announced it had reached an agreement with joint-venture partner Curion Ventures to acquire the latter’s 20% interest in the San Martin gold project. The transaction means Mar-West will now have a 100% interest in the Honduran property. In return, Mar West will issue 1.25 million shares to Curion and cash totalling $283,000, while 500,000 Curion shares which it now holds will be cancelled. Mar-West’s issue rose 3 cents to finish at $1.10, whereas Curion gained a penny to close at 20 cents.

Grayd Resource encountered a significant drill intersection on its Dry Creek property in Alaska. Hole 60, collared in the Fosters Creek zone, intersected “disseminated, semi-massive and massive sulphides” over 65.3 metres. The true width is estimated to be 48.8 metres, and assays are pending. Grayd lost a nickel to close at 85 cents.