STOCK MARKETS — Canadian projects fuel western markets

Even though junior companies have headed off to every corner of the world in search of new mineral discoveries, the most active issues on western markets continue to be those with properties surrounding fairly recent polymetallic discoveries in Labrador and the Yukon.

Investors remain interested in the serious juniors exploring in Labrador’s Voisey Bay region, but they also appear to be keeping a close eye on the Wolverine discovery in the Yukon. As a result, the Vancouver Stock Exchange resource index managed to add 5.62 points over our report period ended noon, Sept. 20, to finish at 1,391.49. The composite index finished the period unchanged at the 865 level.

Atna Resources was one of the more active issues over our report period, adding 40 cents to reach $3.75. The improved share price reflects continued interest in Atna’s land package which hosts the Wolverine discovery, and is well situated near Cominco’s Kudz ze Kayah zinc-copper-lead-silver-gold project. TSE-listed Westmin Resources is earning a 50% interest in Atna’s land package, and the partners are continuing to advance their Wolverine discovery. Westmin and Atna are encouraged by several new developments, particularly a recent stepout hole which encountered a strike extension of the Wolverine zone. Assays are still awaited for this hole (95-08), which intersected a 16-metre section of massive, semi-massive and stringer mineralization, including 3 metres of zinc-rich massive sulphides. As if that wasn’t enough good news, the partners reported that a regional stratigraphic drill program, carried out 8 km northwest of Wolverine, returned mineralization within the Fisher zone target.

On the Labrador front, Castle Rock Exploration is continuing to hold investor interest. The junior tacked on 16 cents to settle at $1.50 over our report period. United Compass, also active in Labrador, posted a gain of 25 cents to settle at $2.10. The increase in the share price of these juniors is attributed to work on their property near Okak Bay. Ground crews are reported to have identified a large area of disseminated and massive sulphide mineralization, and the partners are applying for permits to drill-test this target.

Meanwhile, in the Northwest Territories, a nickel-copper-cobalt discovery is being reported from the Parker Lake project near Rankin Inlet. Cumberland Resources, which at presstime began trading on the TSE, was ahead a modest 4 cents at $1.99 after making the announcement. The company has a 50% interest in the Parker Lake project where a new zone, called Sulak, has been sampled over a strike length of 1,800 ft. The average of 10 representative surface grab-samples spaced along this length was 3.82% nickel, 2.93% copper and 0.165% cobalt. The company notes, however, that the width of mineralization at surface ranges up to 13 ft., and averages 3 ft.

On the Alberta Stock Echange, Asia Minerals gained a nickel to settle at 75 cents. An affiliate of TSE-listed Royal Oak Mines, Asia Minerals has been active in China for several years. It has been a tough haul, but the junior’s persistence has paid off with Chinese state approval for the Yingezhuang gold-mining joint venture in Shandong province.

Asia Minerals and its Chinese partner will each have 50% of the project, which currently produces 13,000 oz. per year at a cost of US$200 per oz. The partners plan to expand production to 60,000 oz. after completing a feasibility study to enhance production design and capacity.

Another ASE-listed junior, Bre-X Minerals, was up $2.25 at $17.00. The increase is the result of more attention from investors and mining analysts who are now taking note of the multi-million-oz. gold potential of the company’s Indonesian projects.