STOCK MARKETS — New opportunities fuel Western markets

For much of the past decade, junior mining companies listed on western markets focused on projects in Canada and the U.S., where the target was typically gold. Today, they are raising funds to explore for a broader range of commodities, including diamonds and base metals, in every corner of the globe. This trend was well-reflected in trading activity on western markets over our report period, which ended at noon on March 2.

The Vancouver Stock Exchange (VSE) resource index held steady at 1,774.78, a modest gain of seven points from a week ago. The composite index lost 3.25 points over the week to settle at 1,126.40.

Mill City Gold was the most active issue on the VSE, ahead 26 cents at $1.99. The junior can earn a half interest in the Yamba Lake block, immediately north of the Dia Met-BHP ground near Lac de Gras, N.W.T. Several kimberlites have been discovered on the Yamba claims, including the Torrie pipe where drilling returned encouraging proportions of macrodiamonds to microdiamonds. More drilling will begin shortly.

Toronto-listed Aber Resources, also active in diamond projects in the Territories, has bought a 9.9% interest in Mill City Gold.

Trading was also active in Texas Star Resources, ahead 45 cents at $3.60. The junior has exposure to diamond exploration projects in the Territories and Arkansas, and recently announced it has secured rights to explore, jointly, more than a million acres in the northern part of European Russia. The region acquired for joint exploration is peripheral to (but does not include) the well-known kimberlite fields of the Arkhangelsk region. Texas Star will provide 100% of the exploration financing to its Russian partner and can earn a half interest if commercial deposits are found.

A 15 cents gain to $4.40 was posted by Ecuadorian Minerals, an Alberta-listed junior making news with its portfolio of gold projects in Ecuador. The company released significant drill results from a program testing the Gaby gold porphyry target in the Ponce Enriquez district.

The results are mostly from holes that tested the feasibility of mining a shallow oxide deposit, as required by the company’s Ecuadorean partner under the terms of a joint venture. A pre-feasibility study is under way on the principal target, a potentially multi-million-ounce sulphide deposit. Results from the initial deep holes seem to confirm the gold potential at depth, with one drill hole returning 545 ft. grading 0.046 oz. gold per ton from 0-545 ft.

VSE-listed Kensington Resources was ahead 49 cents at $1.94 after announcing drilling is under way on its Molanosa Arch properties in Saskatchewan. The program will test geophysical anomalies.

Golden Kristy Resources is well into its search for a gold deposit in North Vietnam. The issue was ahead 7 cents at 72 cents after announcing it was invited to examine the feasibility of mining an area containing widespread, small-scale, primitive gold production. A work program is under way on the property, situated 100 km north of Ho Chi Minh City.

Meanwhile in Bolivia, a polymetallic project is being advanced by Corriente Resources, a junior trading at the $1.40 level. Work will start immediately on a feasibility study for the Tasna property, where previous work by the United Nations outlined a geological resource of 29 million tons grading 1.2 grams gold and 22 grams silver per ton, plus 0.5% copper. This resource is contained within one of three known bulk-tonnage targets on the property. Two juniors involved in diamond exploration received a boost after being recommended by a local brokerage house. Westpine Metals was up 15 cents at 26 cents, while associated company Alpine Exploration gained a nickel at 26 cents. The juniors each hold a quarter interest in diamond exploration projects on Somerset Island, N.W.T.