STOCK MARKETS — Market activity reflects broadened

Western markets remained relatively active during the report period ended noon today, Feb. 24, with investor interest now encompassing more than just diamond exploration activity in the Northwest Territories.

The VSE resource index was up a healthy 20 points at 787.91 from a week ago, while the composite index gained 9.31 points to reach 729.68. Stow Resources and Dryden Resource were the most active VSE issues during the report period. Dryden was off 13 cents to close at 62 cents, while Stow lost 22 cents to settle at 82 cents. The companies share common management, and both issued news releases stating there are no material changes in the affairs of the company. The juniors are involved with SouthernEra Resources in a diamond project in South Africa, where a new plant will begin processing a previously stockpiled bulk sample.

Adrian Resources was another active issue, closing ahead 8 cents at 84 cents. The company announced a new discovery two kilometres from the Botija deposit, one of two known copper deposits on the Petaquilla project in Panama. No assay results have yet been released; however, the stepout hole is reported to have intersected a 75-metre interval with similar mineralization as that observed at the Botija and Petaquilla copper deposits. Adrian is earning a 32% interest from Minnova and a Panamanian company.

Etruscan Enterprises posted a dramatic 95 cents increase to reach $1.50 after announcing it would become operator of the Hackett River base metal property in the Northwest Territories. The project is currently owned 46% by Etruscan and 54% by Cominco. The agreement between the two companies allows Etruscan to be operator, provided it spends a minimum of $400,000 annually and the exploration programs meet Cominco’s approval.

Hackett River was explored in the early 1970s, and the most significant of a number of massive sulphide zones discovered on the property is now estimated to host 4 million tonnes grading 12.76% zinc, 1.38% lead, 0.3% copper, 0.046 grams gold per tonne and 231 grams silver.

The project is 185 km northeast of the Lac de Gras discovery, and it is safe to say trading interest in Etruscan is partly related to the property’s potential to contain kimberlite pipes. Recent work is reported to have identified 11 potential kimberlite pipe signatures, two of which were given a high priority for follow-up work.

Noront Resources posted a modest increase of 3 cents to 24 cents. The company recently announced a private placement with its president, Richard Nemis, the funds of which will be used for working capital and to advance exploration properties. The company is involved in several diamond exploration projects, including one in the Lac de Gras region, another in the James Bay Lowland area of Ontario and one in the Desmaraisville area of Quebec. The flurry of excitement related to rumors of a new gold discovery in the Northwest Territories has abated somewhat, although two companies with ground near Homestake’s Goose Lake find are still posting increases. Lumina Investment gained a further 30 cents to reach $2.15, while Bert Applegath’s Kalahari Resources was ahead 33 cents at $1.62.

Champion Resources held at the 55 cents level, although interest in the company’s Jones Hill project in New Mexico is picking up since Aur Resources acquired the right to earn a 51% interest. (Aur subsequently allowed Thunderwood Resources to earn a 25% interest.) The prime exploration target is the lower of two massive sulphide bodies, and drilling is planned to test the down-plunge area where gross metal values and copper-to-zinc ratios increase. The drilling should determine whether or not this lower target has potential for a large deposit similar to Aur’s Louvicourt discovery, now being advanced to production in Quebec.

Venezuelan Goldfields (Vengold) slipped a modest 12 cents but is holding at the $10 level, after reporting details of the legal complexities involved in trying to acquire the Oro Uno concession in the Kilometre 88 district of Venezuela. Although the outcome of this dispute remains to be seen, Vengold is continuing to position itself as the dominant junior company in the region.