MINING MARKETS & INVESTMENT NEWS – WESTERN MARKETS — VSE roused as market ponders Argentina Gold takeover

The Vancouver Stock Exchange composite index continued its slow climb, gaining 4.28 points to close the week ended Jan. 19 at 422.22. The mining index edged up 0.13 point and finished at 308.32. Meanwhile, the combined value of the Alberta Stock Exchange tacked on 50.92 points, closing at 1,881.13.

Polymet Mining jumped 21 cents and closed at $2.20. The company has entered into an agreement with BacTech Metallurgical Solutions for the preliminary bioleach testing of bulk concentrates from its NorthMet deposit in Minnesota. If the technology is adopted, BacTech will be entitled to a cash payment on commissioning of the plant.

Argentina Gold shot up 15 cents, closing at $5.10. Toronto-listed Barrick Gold increased its takeover bid for the junior to $5 from $4. The junior also announced that it had intersected gold at a geophysical target 600 metres north of the Amable project. An additional 8,500-metre, $1.6-million drill program has now been budgeted. Currently, four rigs — two reverse circulation and two diamond — are drilling the property. Barrick holds a 40%, non-operating interest in the Argentine property; Argentina Gold holds the rest.

Balaclava Mines has begun the second stage of drilling program at its El Corazon project in Ecuador. The property is known for its abundance of high-grade gold occurrences and has had more than 80 holes poked into it to date. The company plans to add another 10, focusing primarily on the Tres X zone and bonanza-style gold veins. Balaclava’s issue rose 7 cents to 70 cents.

Maracote International reached a high of 88 cents during the week before settling at 76 cents — a gain of only a penny. Highlights from initial assay results from the Quilca Breccia gold target on the Halley property in south-central Peru include 67.5 metres averaging 2 grams gold per tonne in hole 98-1. Hole 98-3 intersected 68 metres averaging 2.1 grams, including 15.3 metres running 4.1 grams.

Winspear Resources lost 4 cents at $3.77. The company announced that a mini-bulk sample taken from the NW dyke on the Camsel Lake property in the Northwest Territories was enhanced by the presence of three large gem-quality diamonds. The diamonds weighed in at 10.82, 8.42 and 6.04 carats. An additional 22 stones weighed between 1.01 and 5 carats. The largest diamonds contributed about 75% of the value of the total parcel.

TNR Resources slipped 2 cents, closing at 27 cents. The company has completed a first-phase exploration program on its

La Ortiga property in northwestern Argentina. The program identified two large volcanic-hosted precious metal targets. More exploration is under way and will be followed by drilling.