STOCK MARKETS — Resource stocks rebound in western markets

Western markets resumed their ascent over the report period ended May 28, recovering from the recent routing created by Cartaway Resources’ poor assay results from its Cirque property in Labrador.

The resource index jumped 128 points to the 2,518-level while the composite index gained 48.55 to close at 1,416.60.

Valerie Gold Resources took the spotlight this week, rocketing to a high of $28.90 after releasing assay results from the first hole on its Mamatla project in Mexico. The issue backtracked to close at the $26 level, for a gain $13.60.

The first hole was drilled on the Capire zone, where previous work by the Mexican government outlined a resource of some 5.2 million tonnes grading 17.3% zinc and 5.92% lead, as well as 0.4 gram gold and 445 grams silver per tonne.

The hole returned a 6-metre massive sulphide intersection grading 5.67% zinc, 2.38% lead and 0.66% copper, as well as 2,218 grams silver and 3.65 grams gold, within a 28.7-metre intersection grading 2.08% zinc, 0.85% lead and 0.2% copper, plus 494 grams silver and 0.81 gram gold.

Assay results from four additional holes on the Capire zone are pending, and the company sees potential in outlining a large open-pit resource.

Valerie completed a brokered private placement of 1.5 million units at $14 each. TVX Gold put its stamp of approval on the project by subscribing for half of the issue.

Market action on Valerie spilled over to three other companies with the same promoters and management, including: Cream Minerals, up a whopping $7.15 at $9.20; Emperor Gold, up $2.55 at $7; and Sultan Minerals, up $1.65 at $3.15.

Reports of highly mineralized black mud (mainly pyrrhotite) on the Okak property in Labrador gave a boost to joint-venture partners Castle Rock Explorations and United Compass Resources.

The joint venture encountered the black mud at the collar of the first drill hole, which is testing a deep geophysical conductor.

Castle Rock added 55 cents at $2.10 while United Compass closed up 21 cents at $3.09.

Farallon Resources continued to run, hitting a high of $20.25 before settling at $17.10, for a gain of $4.10.

The company is starting an $18-million exploration program at its Campo Morado property in Mexico, where several known massive sulphide prospects will be tested.

Plans to acquire two copper-gold projects in Chile helped Alberta-listed Blue Desert Mining add 39 cents at $1.55. The company is also conducting drilling on its 50%-optioned Nassau claims in Nevada, where a geological resource of 500,000 oz. was previously reported.

Investors bid up Major General Resources, pushing the issue to a high of $1.40 before it closed at $1.22, up 29 cents. The company reports that preliminary exploration work on its property holdings in Greenland returned heavy minerals indicative of kimberlites.

Samex Mining gained 85 cents to close at $6.30 after announcing plans to raise $15 million through a brokered private placement of 3 million units at $5 each. Proceeds from the placement will be used to explore the company’s Bolivian properties.

Joint-venture partners NDT Ventures and Alberta-listed Takla Star Resources both gained ground after receiving word that a plebiscite in Nain, Labrador, showed that most of the townspeople are in favor of drilling being carried out on the companies’ nearby 44 prospect.

NDT added $1.05 at $5.30, while Takla Star was up 80 cents at $8.50.

Mandorin Goldfields added $1.16 to close at $2.36 after announcing that it has arranged a brokered private placement of 4.2 million units at $1.20 each.

Proceeds from the placement will be used to fund exploration work on the company’s property interests in Indonesia and Zimbabwe.

Approval in principal for contracts of work on the Gunung Tempurung concession in West Kalimantan, Indonesia, helped Consolidated Valley Ventures add 68 cents at $2.45.