STOCK MARKETS — Barkhor, Chapleau issues gain on drill-hole

Western markets tracked sideways during the report period with little help from depressed gold markets. Gold lost about US$7 per oz., marking a new 6-year low at the US$330-per-oz. level.

The Vancouver Stock Exchange composite index finished at 560.32 for a gain of slightly more than three points, and the resource index edged up 1.08 points to close at 549.80, during the week ended Nov. 10. (The VSE was closed Nov. 11.)

Speculation over drilling on the FORS property owned by Barkhor Resources and Chapleau Resources gave both issues a boost. Barkhor added 33 cents to close at 45 cents, with Chapleau following suit to finish at 53 cents for a 33 cents gain.

The companies are exploring for a Sullivan-type deposit on the property which is about 10 miles southwest of Cranbrook, B.C. Drilling is reported to have intersected visible lead-zinc mineralization.

Dragoon Resources, an affiliated company with ground adjoining the FORS property on the west boundary, finished the week up 13 cents at 20 cents. Market observers remain somewhat skeptical of the play, noting that claims of visible massive sulphide intersections from properties in the area have proven to be over-exaggerations of actual assay results a number of times in the past.

Consolidated Ramrod Gold recently negotiated an option with Barkhor and Chapleau, giving the company the right to earn up to a 60% interest in the FORS property by spending up

to $2 million on exploration and development. Ramrod closed up 65 cents at $4.15.

Trading in Lytton Minerals remained brisk, propelling the issue to a new high for the year of $1.05. Lytton finished the period up 24 cents at 90 cents. After reporting the discovery of diamond-indicator minerals on ground in the Lac de Gras area of the Northwest Territories, the company has initiated a 10-day program of further soil sampling and other work in the area where the indicator minerals were found.

With close to 40 million shares outstanding, the recent market price puts a hefty $40-million market capitalization on the company.

Winspear Resources and Consolidated Newgate Resources announced that 42% of the 67 till samples taken this summer at the Courageous Lake joint venture yielded pyrope garnets.

The joint venture has also outlined five circular magnetic lows up-ice from the diamond-indicator minerals. The companies have proposed a program of ground geophysics and drilling to evaluate the targets.

Both issues remained little changed, with Winspear down 4 cents at 64 cents and Consolidated Newgate up 4 cents at 51 cents.

With its recent listing on The Toronto Stock Exchange, Dia Met Minerals vaulted to a new high of $27 before settling at $23.87 for a gain of $2.63. Cyclone Capital jumped 25 cents to close at $1.15. The company recently shipped four kimberlite samples from its Batty claims on Somerset Island for analysis in South Africa. Cyclone has identified 21 kimberlite bodies on the Batty claims.

New Canamin Resources received a 9 cents boost following the release of additional assay results from drilling on the company’s Huckleberry porphyry copper property near Kemano, B.C. The company is outlining a high-grade core within a previously drilled deposit.

Assay results from 32 out of 48 holes have been received to date from Huckleberry, with results grading up to 1.05% over 290 ft. in hole 92-26. New Canamin finished the week at $1.09.

Robert Friedland’s Mt. Grant Mines announced it has reached two acquisition agreements. One gives the company ownership rights to five concessions in the state of Bolivar, Venezuela. The other purchase agreement (with a firm indirectly owned by Friedland) gives the company a 50% interest in a company holding the exploration rights to the Tatambla gold property near Tegucigalpa, Honduras.

Mt. Grant will pay up to 1.4 million shares for the two acquisitions as well as payments totalling US$210,000. The issue lost a quarter to close at $1.55.