MINING MARKETS & INVESTMENT NEWS — WESTERN MARKETS — Winspear, Foran provide sparkle to western markets

Dark clouds, cold temperatures and heavy rains have stalled the onset of summer in Vancouver, and the general dreariness appears to have spread to the city’s capital markets. With gold prices as depressed as the weather, the only action this past week has come from the base metal and diamond sectors.

The Vancouver Stock Exchange composite index lost 5.57 points, or 1.3%, to settle at 424.23 over our report period ended June 22. The mining index tumbled 4.81 points, or 1.65%, and came to rest at 285.86. Meanwhile, the combined value of the Alberta Stock Exchange tacked on 17.77 points, or 0.7%, to close the week at 2490.60.

One bright spot was Foran Mining, which jumped 23 cents to close at $1.09 after releasing drill results from hole MB-107 at its McIlvenna Bay project in the Flin Flon greenstone belt of northern Saskatchewan. The hole identified a new lens of sulphide mineralization situated stratigraphically below previously drilled lenses. The hole is reported to have cut 6.86 metres of massive sulphide mineralization and an additional 14.58 metres of stringer mineralization. Assays are pending.

Winspear Resources released its long-awaited bulk-sample results from the Snap Lake dyke on the Camsell Lake project in the Northwest Territories. The first half of the 6,000-tonne bulk sample returned a grade of 1.845 carats per tonne, with an average value of US$92.82 per carat. Winspear’s share price went on a roller-coaster ride before it settled at $3.66, up one penny from last week.

Diamondex Resources, a subsidiary company containing Winspear’s grassroots assets, also saw a flurry of trading action. Diamondex rose 20 cents and closed at 90 cents.

Global Explorations gained 15 cents to close at $1. The company has inked a deal for a 49% stake in two alluvial diamond concessions in the Democratic Republic of the Congo.

KRL Resources lost a nickel to close at 20 cents. Anomalous drill results were released from the company’s Copper Hill property in the Shining Tree area, south of Timmins, Ont. The best copper intersection cut 1 metre grading 1.88% copper.

GMD Resources nose-dived 20 cents before levelling off at 55 cents. The company announced it had entered into an agreement with Monopros, the wholly owned subsidiary of De Beers, for the 499,416-acre Royce Group diamond property in the Northwest Territories. To earn a 51% interest, Monopros must spend $16 million on exploration by April 2004.

Polymet Mining received a grant of US$58,000 from Minnesota Technology (a state-run agency) that will be put towards work on the company’s NorthMet polymetallic project. Polymet closed at $1.98, up 8 cents.