STOCK MARKETS — Gold stocks lose lustre as western markets sag

Gold reversed its direction over the report period ended Feb. 13, taking a bit of the shine off of western markets as it settled in at US$403 per oz. The Vancouver Stock Exchange resource index fell 95.9 points to close at 1,693.28, while the composite index finished down 16.58 points at 955.6.

Alberta-listed Bre-X Minerals was up $12 at $116 on media reports that its Busang gold project in Indonesia could contain up to 40 million oz.

Drilling on the Promontorio property in Mexico’s Chihuahua state returned a 82-ft. intersection grading 7.33% copper, 0.86% lead and 2.2% zinc, as well as 0.18 oz. gold and 3.07 oz. silver per ton for Sierra Nevada Gold. The intersection from hole 95-3 included a 37-ft. interval grading 12.27% copper, 1.46% lead and 2.49% zinc, as well as 0.34 oz. gold and 5.14 oz. silver. Sierra Nevada more than doubled, jumping 88 cents to close at $1.65.

Alberta-listed Stratabound Minerals slipped as low as $2.50 before further news from the Taylor Brook property in Bathurst, N.B., edged the issue up to $3.25, for a loss of 50 cents. Hole 18 — a 330-ft. stepout east of hole 17 — returned a 7.7-ft. intersection grading 1.29% zinc, 0.69% lead and 0.54 oz. silver, while hole 19 — a 330-ft. stepout downhole of hole 17 — returned 13.1 ft. grading 1.45% zinc, 0.65% lead and 0.79 oz. silver.

The release of more drill results from the Golden Hill gold-copper project in Cuba was not sufficient to sustain the momentum of joint-venture partners MacDonald Mines Exploration (ASE) and Golden Hill Mining (CDN). MacDonald closed down $1.45 to $1.65, while Golden Hill closed at $1.70 for a loss of $1.30. Mill City Gold Mining, holding a 40% interest of Golden Hill Mining, fell 75 cents to finish at 60 cents.

As quickly as Gold Canyon Resources shot up, it fell, closing at $9.88 for a loss of $9.50. The latest drill hole from its Springpole Lake project, a joint venture in northwestern Ontario with NYSE-listed partner Santa Fe Pacific Gold, included a 5-ft. interval grading 0.41 oz. and 20-ft. interval grading 0.047 oz. for hole 164.

International CanAlaska Resources closed up 13 cents at 88 cents. A geological work program at the company’s fully owned Ipeta concession in Panama identified a pie-shaped copper soil anomaly measuring 1,200 by 1,700 metres. CanAlaska also acquired two contracts of work covering 174 sq. km on the Indonesian islands of Kalimantan and Haruka.

A private placement financing of 1.3 million units at $1.80 per unit is being arranged by Consolidated North Coast Industries. Each unit consists of one common share and one non-transferable share purchase warrant entitling the purchase of one additional share at $1.80 for a period of 12 months. The proceeds will be used to explore three porphyry gold-copper targets in the Kemess district of British Columbia. Consolidated North added 72 cents to finish at $2.62.

America Mineral Fields has entered into an exclusive agreement with Gecamines to determine the feasibility of rehabilitating the Kipushi zinc-copper-gold mine in southern Zaire. The agreement is subject to further negotiations following the completion of America’s review of the project. America Mineral tacked on $1 to close at $6.13.

The first drill hole of a minimum 15-hole joint-venture program under way in the northern part of Ukraine intersected 12 metres of an ultramafic rock identified as kimberlite. A second target, 6 km from the first drill site, returned 42 metres of ultramafic rock, which is being examined. Alberta-listed Prior Resources, holding a 15% interest in the joint venture, remained unchanged at 30 cents, while Antler Resources, with a 10% interest, added 19 cents to close at $1.41. Prior can earn an additional 30% interest from Toronto-listed SouthernEra Resources, which holds a 75% interest, by spending US$150,000.