STOCK MARKETS — Rise of Bre-X stock bodes well for Indonesian project

Referendum jitters made for an unsettled week for western markets over the report period ended Oct. 24.

The Vancouver Stock Exchange composite index lost 29.95 points to close at 775.80, while the resource index fell 50.86 points to finish at 1,260.93.

Alberta-listed Bre-X Resources continued to enthrall the market, touching a high of $59 before closing at $43 for a gain of $13.75. The soaring share price was fueled by the release of reserve figures from the company’s Busang gold project in Indonesia. The numbers suggest the 80%-owned Central zone could contain 2.75 million oz. and that the project, which contains two other known zones, could grow into a large-scale deposit.

Pacific Amber Resources benefited from the Busang play, jumping $1.51 and closing at $2.76. The company’s holdings include a 100% option on the Gunung Mas property and a 90% option on the Murung property, situated along the Kalimantan gold belt in Indonesia. Gothic Resources has entered into a letter agreement with Pacific Amber enabling it to earn an initial 40% interest in the Murung property. Gothic closed up 50 cents at $1.50.

After being halted Tuesday, Oct. 25, pending clarification, Minefinders released preliminary drill results from its Bolsa project in Mexico’s Sonora state. At 11 a.m. on Oct. 26, the issue was trading at $3.60, down $2.15. Preliminary results for hole 95-1, which was drilled to a depth of 630 ft., included 0.01 oz. gold per ton over the first 30 ft., while assay results from the upper 410 ft. of hole 95-2, which was drilled to a depth of 600 ft., included an average of 0.01 oz. for the first 200 ft.

Trading was halted in Great Western Gold and War Eagle Mining pending an announcement regarding the Candle Lake diamond joint-venture in Saskatchewan. Great Western was up 60 cents at $1.60 and War Eagle finished at $2, a gain of 49 cents. Kennecott Canada, which is earning a 60% interest in the project, drill-tested kimberlite-30 with nine drill holes, and recovered, by caustic fusion analysis, 32 macros and 149 micros from 1,345 kg of core material. The largest stones measured up to 1.2 mm.

An exclusive 90-day agreement with Mountain Province Mining and Camphor Ventures propelled newly listed American Mineral Fields to $5.63, an increase of $1.53. The agreement allows access to data relating to the AK-CJ properties, in which Mountain Province holds a 50% interest and Camphor holds 10%. Mountain Province remained unchanged at $5, while Camphor added 10 cents to finish at $2.30.

A series of transactions with Welcome Opportunities will see Toronto-listed Kinross Gold acquire 1.7 million shares of Welcome, representing a 46% share. Welcome holds a portfolio of natural resource-related securities. The issue closed up 40 cents at $2.80.

Final drill results from the 1995 field program at AGC Americas Gold’s JD property in north-central British Columbia included 6.6 ft. of 0.99 oz. gold for hole 132 and 22.2 ft. of 0.39 oz. for hole 124. Data from this year’s drill program will be interpreted in preparation for a 1996 program. AGC added 22 cents to finish at 88 cents.

The completion of a 2,000-metre drill program on the Mac property in British Columbia was met by a 22 cents loss for Spokane Resources, which fell to 38 cents. The company drilled 11 holes in a program aimed at testing a molybdenum-copper porphyry system. Assay results are pending.

Farallon Resources continued to ride investor interest, gaining 44 cents to close at $1.89. The company is gearing up to begin an exploration program on its recent acquisitions in Mexico.

A recommendation by a precious metal funds manager gave a boost to Arequipa Resources, hitting a high of $1.45 before leveling off at $1.20 for a 20 cents gain. Arequipa holds a large portfolio of properties in Peru.

Drilling by New York-listed Santa Fe Pacific Gold on the Swan gold project of Mountain-West Resources in southwestern Montana encountered higher-than-expected gold values. The Plymouth breccia pipe returned 40 ft. of 0.38 oz. for hole 17 and 5 ft. of 16.91 oz. for hole 18. Santa Fe can earn a half interest in the project. Mountain-West finished up 4 cents at 22 cents.