STOCK MARKETS — Gold’s rebound helps Western markets gain

Western markets continued to gain ground, following gold’s US$12.50 rebound to the US$375-per-oz. level, while diamond issues either tracked down or tracked sideways.

Over the period ended Nov. 9, the Vancouver Stock Exchange resource index added more than 39 points to close at 1,522.17 and the composite index edged up just over 12 points to finish at 1,042.46.

Results from sampling on two kimberlite pipes at the Yamba Lake joint venture in the Northwest Territories prompted a selloff in Alberta-listed Tanqueray Resources and Fibre-Klad Industries, as well as in Vancouver-listed Mill City Gold.

The joint-venture partners reported that a 23.2-kg sample from the Sputnik pipe returned one macrodiamond and three microdiamonds.

Two samples from the Sue pipe returned one macro and eight micros in a 76.6-kg sample, while a second (20.6-kg) sample contained one macro and four micros.

This compares poorly with the original discovery on the Torrie pipe which contained a total of 152 micros and 39 macros from three samples weighing a total of 161.6 kg.

Halfway through the trading day of Nov. 10, Mill City was down 52 cents at $1.62, Fibre-Klad was off 75 cents at $1.80, and Tanqueray had lost 98 cents at $2.27.

Core from the second hole on the Torrie pipe is being prepared for diamond analyses.

Ashton Mining announced it plans to exercise a 50% buyback clause on the Cross property owned by Tenajon Resources and Toronto-listed Pure Gold Resources.

Reconnaissance work on the property, about 130 km northeast of Yellowknife, N.W.T., identified several discrete fans of kimberlitic indicator minerals and the joint venture plans to complete an airborne geophysical survey in the near future to identify potential targets.

Tenajon, which touched a new high of $1.25, closed down a dime at 94 cents, while Pure Gold remained unchanged at 39 cents.

Cumberland Resources did well, hitting a high of $1.25 before finishing up 24 cents at $1.15. The company has completed exploration work for the season at its half-owned Meliadine gold project near Rankin Inlet, N.W.T., and does not expect to be back on the property until next spring.

Hiring an investor-relations group appears to have helped St. Philips Resources. The issue traded as high as $2.25 before closing up 45 cents at $2.05.

Work toward a mine development certificate at the company’s 40%-owned South Kemess copper-gold project in British Columbia is continuing while the joint venture looks for a buyer for the property.

El Condor Resources, which holds the remaining 60% interest, finished up 35 cents at $4.40.

The acquisition of 21 diamond bearing mineral properties in Brazil gave Southern Copper a 10 cents boost to 57 cents.

The 32,000 acres of ground cover known kimberlites and alluvials, rich in diamonds, along both the Santo Antonio de Bonito and Santo Inacio Rivers. Southern Copper has completed a one-million unit placement at 40 cents to fund exploration work on the Brazilian project.

Argentina Gold has applied for exploration rights on 120,000 acres of gold-prospective ground along the Argentina-Chile border.

The issue finished up 55 cents at $2.25.

Assay results from the first 11 holes on the Hislop Twp. joint venture with Hemlo Gold Mines helped Glimmer Resources with a 20 cents gain to $1.50. The drilling returned assays grading better than 17 grams gold per tonne over widths ranging from 1.5 metres to 5.2 metres.

Delta Gold Mining reached an agreement with brokers Yorkton Securities and First Marathon Securities to raise up to $7 million through a brokered private placement of 3.5 million units at $2 each.

Funds from the issue will be used for exploration on the company’s Tregoora project in Australia and the Trinidad project in the Philippines. Delta closed up 45 cents at $2.60.