MINING MARKETS & INVESTMENT NEWS – WESTERN MARKETS — VSE holds its own as mining index edges ahead

The Vancouver Stock Exchange composite index held its ground during the report period ended Dec. 15, losing only 0.17 point to finish at 382.50. The mining index showed signs of life, tacking on 4.89 points to close at 286.82. Meanwhile, the combined value of the Alberta Stock Exchange lost 23.06 points and closed at 1,690.90.

The star of the Vancouver market over the past week was Argentina Gold. News of Toronto-listed Barrick Gold’s hostile takeover bid sent the junior’s stock skyrocketing: its issue nearly doubled in price, up $2.39, and closed the week at $5.35. Argentina Gold also released further drilling results from its Veladero property in northwestern Argentina. At the Amable target, hole 92 cut 105 metres grading 7.67 grams gold and 52.50 grams silver per tonne, and hole 93 intersected 119 metres averaging 1.39 grams gold and 20.56 grams silver.

AfriOre rose 9 cents and closed at 55 cents. The company has signed a letter-of-intent with Kangra Group of South Africa for the right to mine a portion of AfriOre’s property, which is adjacent to Kangra’s Springlake Colliery. According to the agreement, Kangra will pay AfriOre $650,000 for the mining rights. Kangra also granted AfriOre the right to buy the coal mine for US$6.5 million until March 31, 1999.

BMA Mining tacked on 8 cents and closed at 18 cents. The market is awaiting assay results from two holes drilled on the Hislop Twp. gold project in Ontario’s Timmins camp. Partner Cypress Minerals lost 2 cents, closing at 11 cents. BMA also announced that it has abandoned its interest in the Lac de Charloit region of the MacKenzie mining district in the Northwest Territories, as have partners International Riley Resources and ITL Capital. According to the firms, exploration results were disappointing. International Riley and ITL Capital each lost a penny and closed at 15 cents and 7 cents, respectively.

TNR Resources lost a nickel and closed at 34 cents. Partner Orko Gold, which owns a 60% operating interest in the La Ortega property in northwestern Argentina, announced that exploration activities are under way. Orko has contracted Coast Mountain Geological to perform rock and talus sampling, as well as prospecting and reconnaissance mapping. Orko’s issues dropped 5 cents, closing at $1.10.

Anzex Resources slipped 7 cents to 33 cents. A technical review of the company’s work on the Longwoods project in New Zealand revealed that drill holes 1 and 2 failed to crosscut layered mafic rocks, remaining within a layer of unfavorable — and barren — rocks. Hole 3 encountered anomalous platinum and palladium in the vicinity of soil and boulder-chip anomalies. A new structural model has been introduced, and drilling will continue once sufficient soil and chip samples have been collected.

Latitude Minerals, which owns a 25% interest in the Project 79 joint venture in Labrador, slimmed by 2 cents to 28 cents.