STOCK MARKETS — Franciso find excites western markets

The Vancouver Stock Exchange resource came to life over the report period ended March 4, rising 132.68 points, or 5.57%, to close at 2,513.88. The composite index closed up 68.36 points, or 5.41%, at 1,331.41. It was the first time in eight months that the composite index climbed above the 1,300 level. Mineral exploration companies are responsible for a large part of the gain.

The combined value of the Alberta Stock Exchange increased by 51.96 points, or 1.83%, to finish at 2,887.76.

Shares of Francisco Gold soared on the release of impressive drill results from a second phase of drilling on its wholly owned El Sauzal gold discovery in Mexico. The issue closed at $30.30 in heavy trading for a gain of $13.30.

Francisco believes it has discovered an oxide gold deposit of considerable proportions.

The find was a boost for regional players, including: Alamos Minerals, up $2.20 to $3.36; Lucero Resource, up 27 cents to $1.55; Visionary Mining, up 53 cents to $1.15; and Morgain Minerals, up 35 cents to $3.95.

A 5,000-metre drill program will soon begin at Argentina Gold’s 60%-held Veladero North project in the Argentine Valle del Cura region. Preliminary trenching on the NW target returned 171 metres of 2.3 grams gold per tonne, 80 metres of 1.28 grams and 50 metres of 1.77 grams. Argentina edged up 10 cents at $2.85. Toronto-listed Barrick Gold holds the remaining interest.

Britannia Gold is conducting reconnaissance work on several properties in Mexico and in Peru. At the Columbia concession in Peru, the junior identified a large geochemical anomaly with characteristics of a porphyry copper-gold-molybdenum system. Britannia closed at $1.80, up 48 cents.

With the launch of a surface drill program at the Marmato gold property in Colombia, Conquistador Mines gained $1.10 to finish the period at $6.90. The company plans to carry out up to 20,000 metres of surface and underground drilling.

At last report, Golden Peaks Resources had completed four holes totalling 408 metres on the LDB gold-silver vein system at the Los Dos Buhos joint-venture project in Argentina. The issue tacked on 77 cents at $2.90, while partner Primo Resources edged up 6 cents to $1.75.

Broadwater Developments closed up 50 cents at $1.25, while Nu-Lite Industries climbed $1.65 to finish at $3.10. The two companies are partners in a preliminary-stage venture on the Sanmenxia gold property in China’s Henan province. Assays from chip samples range from 2.4 oz. gold over 1.6 ft. to 32.3 oz. over 3.3 ft.

The exercise of all warrants from a February 1996 financing has netted Essex Resource $4.9 million and increased its treasury to $15 million. The main focus for the company in 1997 will be Bolivia, with particular emphasis on the Miguela and Porvenir projects. Exploration expenditures for the year are estimated at US$3 million. Essex was up $1.05 at $3.90.

Athlone Resources has begun a follow-up geophysical survey program on the newly optioned Wintering Lake property in Thompson, Man. Surface sampling has yielded interesting base and precious metal values. Athlone closed at $1.33, adding 30 cents.

Consolidated Callinan Flin Flon Mines was up 54 cents at $1.99 on the resumption of drilling at the Lynn Lake project, also in Manitoba.

A $3-million drill program at the Island Gold project near Wawa, Ont., has intersected three zones of visible gold mineralization at vertical depths of 450-525 metres below surface, extending the zone from a previous 290-metre depth. Patricia Mines closed up 53 cents at $1.37, while United Compass Resources, which has optioned a half interest from Patricia, was up 16 cents at 92 cents.