STOCK MARKETS — Chilean find boosts trading on western markets

It has been said that nothing drives the Vancouver Stock Exchange better than hot drill results. And that was the case this week, when Arizona Star Resource reported an impressive, high-grade intersection from drilling at its Cerro Casale deposit in Chile.

Add to this a strong interest in Alberta-listed Bre-X Minerals’ ongoing work at the Busang gold deposit in Indonesia — as well as keen investor interest in a variety of exploration projects coming forward, worldwide — and the ingredients were in place for a relatively buoyant week of trading on western markets.

The VSE’s resource index was up 67 points to reach 2,013.24 over our report period ended noon, April 17. The composite index held steady over the week, at 1,163.37 points.

The highest volume trader was Arizona Star, which reported that drill hole 176 had returned an average of 0.52 oz. gold per ton over 138 ft. This same interval also contained copper and silver values averaging 1.5% and 0.7 oz., respectively.

This intersection was from the newly discovered Deep Oxide zone on the Cerro Casale deposit at the company’s 51%-owned Aldebaran gold property in Chile. Parent company Bema Gold holds a 49% interest.

Aldebaran is well-known for its large, but low-grade, deposit now at the feasibility stage. The Deep Oxide zone adds a new dimension to the project, particularly as its similarities to Barrick Gold’s El Indio gold deposits have been noted. Arizona Star gained 82 cents over our report period to close at $2.37.

Meanwhile, on the Alberta exchange, Bre-X took top spot after shedding more light on the extent of gold resources at its Busang property in Indonesia. While the results of the initial resource calculation by Kilborn confirm the property’s potential, more drilling is required to move those ounces into the proven category for mine-planning purposes. Even so, investors liked the news and the share price climbed to $164.50, up $5, as a result.

Shares of Alberta-listed Timbuktu Gold took off as results were released from exploratory reverse-circulation drilling at its mining concessions near Sitakili, Mali.

Holes 8 and 11 returned numerous 5-ft. intervals grading more than 100 grams per tonne, with several 5-ft. intervals of more than 200 grams. The junior hit a high of $10 before settling back to about $9.40.

Shares of War Eagle Mining were halted at presstime, as the company released highly encouraging results from its La Fortuna gold-silver project in Mexico. The issue has been trading at about the $3 level.

Conquistador Mines showed some weakness — it was off 25 cents at $8.25 — after posting steady increases in recent weeks as a result of interest in the company’s bulk-tonnage gold prospect in Colombia.

Sutton Resources was up 75 cents at $20 after current management was able to win the first round of a proxy battle led by one of its directors, James Sinclair. It appears Sinclair and the other directors are at odds as to how to proceed with development of the Bulyanhulu gold project in Africa. Current management intends to continue exploration and develop the project without a joint-venture partner.

International Tournigan added another 70 cents to reach $6 in active trading. The junior holds a large package of ground in gold-rich Papua New Guinea, and has been helped in its financing efforts by none other than Robert Friedland.

Diamonds appear to be holding their sparkle on western markets. Archangel Diamonds, which is involved in a diamond venture in Russia, was up another 59 cents at $4.64.