STOCK MARKETS — Concern over interest rates shakes resource

With gold drifting at the US$378-per-oz. level and major markets shaken over interest rate concerns, the Vancouver Stock Exchange traded lower during the period ended March 8.

The VSE resource index shed more than 51 points to close at 1,747.6, while the composite index dipped almost 12 points, finishing at 1,126.1. Madison Enterprises bucked the downtrend, putting in a strong performance with a jump of $1.30 to $2.80. Adrian Resources released results from drilling at the companies’ Belencillo joint venture in Panama. The initial three holes, drilled on a bull’s-eye copper and gold geochemical signature, returned 323.2 ft. grading 0.28% copper and 0.031 oz. gold per ton, 428.2 ft. grading 0.33% copper and 0.026 oz. gold, and 497.1 ft. grading 0.028% copper and 0.026 oz. gold.

Adrian, unchanged at $3.15, also released results from drilling on the nearby La Esperanza joint venture with Silverstone Resources. The best hole returned a 281-ft. intersection grading 0.24% copper. Silverstone was off 9 cents to $1.07.

Trading in Goldbelt Resources was halted at the request of the company; it last traded at $1.11 for a loss of 8 cents on the week. Details were not available at presstime, although Pegasus Gold is expected soon to announce its involvement with Goldbelt. Pegasus has been in the process of completing a due diligence review of Goldbelt’s gold-silver tailings project in Kazakhstan, with the objective of providing US$18 million in convertible debenture funding.

Athena Gold took a 20 cents jump on relatively heavy volume, trading at the $1 level mid-way through the trading day, March 9. Athena has granted Pegasus a 45-day extension on their March 9 deadline for a US$250,000 cash payment on the Talapoosa project in Nevada. Pegasus may earn up to a 70% interest in the heap-leach gold project by making cash payments to Athena and by bringing the property into production.

The two companies plan to use the 45-day period to discuss an amendment to the current earn-in agreement or, alternatively, the outright purchase of the property by Pegasus.

The appointment of IBK Capital as financial adviser appeared to give Emperor Gold a boost. The company, which added 20 cents to close at 94 cents, hopes to raise up to $7 million to fund work at its various property interests, including the former-producing Idaho-Maryland mine in California. Taseko Mines successfully completed the acquisition of the Fish Lake copper-gold project in British Columbia from Cominco for a total payout of $25 million. Taseko paid for the purchase through the sale in the open market of more than 1.6 million shares. The market did not seem to have any trouble digesting the sale during the 2-month period, given that the issue’s recent close of $15.88 compared favorably with its $12.50 price when the deal was signed late last year.

With a new phase of exploration under way on its nickel-cobalt properties in Tanzania, Sutton Resources managed to hit a new high of $40.25 for a gain of $4.50. BHP can earn a 58% and 66% interest in each of two large concession areas from the company by funding exploration and development through to a production decision.

Canarc Resources lost 35 cents to close at $3.90 after releasing results from the first phase of exploration on its joint-venture properties in Venezuela. The results included anomalous gold values from auguring on the Gaurimba joint venture with partners Tombstone Explorations and Consolidated Magna Ventures. Magna lost 20 cents at $2.40 while Tombstone added 20 cents to close at $4.10.

The acquisition of a minimum 50% interest in the Banska Stiavnica gold-silver project in the Slovak Republic helped Kingston Resources trade as high as 97 cents before finishing up 9 cents at 87 cents. Recent drilling on two vein structures is reported to have returned a 20-ft. and a 30-ft. intersection, each grading almost 1 oz. gold per ton.