STOCK MARKETS — Rising gold price ignites western markets

Gold’s surpassing the US$410 per-oz.-level lit a fire under Western markets, sending the Vancouver Stock Exchange resource index up over 240 points to 1,789.18 during the report period ended Feb. 6.

The composite index followed suit, leaping over 85 points to finish at 972.18.

The release of drill results confirming previous resource estimates for the Sulut property in Indonesia launched Pacific Wildcat Resources to a high of $3.55 before settling at $3.30 for a gain of $1.17 on the week.

The resource is estimated at 12 million tonnes grading 2.09 grams gold plus 4.4 grams silver per tonne, and Wildcat holds the right to earn a minimum 52% interest in the property.

Mill City Gold, Alberta-listed MacDonald Mines Exploration and Golden Hill Mining (CDN) all posted spectacular jumps after a trading halt and the release of assay results from drilling on their jointly held Golden Hill discovery in Cuba.

Results include values of up to 48.2 metres grading 1.7 grams gold and 1.35% copper.

All three issues were halted a second time pending the release of additional assays from the property.

Mill City was halted at $1.35, up $1.01; MacDonald was halted at $3.10, up $2.61; and Golden Hill was up $2.25 to $3.

Brooks Resources gapped up to $1.87 for a gain of $1.42 after announcing plans to acquire up to a 60% interest in two Argentina properties from Northern Orion Explorations. One of the properties contains a previously identified porphyry copper-gold deposit which Brooks plans to evaluate. The other property is reported to exhibit vein structures and significant mineralization.

Northern Orion also put in an impressive performance, adding $1.50 to close at $7.50 after upgrading the Agua Rica property resource to 1.2 billion tonnes grading 0.51% copper and 0.22 gram gold. Agua Rica property, situated in the Catamarca Province of Argentina, is a joint venture with 70% partner BHP Minerals.

The strong gold market helped Da Capo Resources post a 70 cents gain at $3.50. The company recently negotiated the purchase of the remaining interest in the Cap Circa gold property in Bolivia and is negotiating to acquire a full 100% interest in the nearby Amayapampa property. Da Capo estimates the Capa Circa resource at more than 32 million tonnes grading 1.17 grams gold, while the Amayapama resource is estimated at 4.1 million tonnes grading 3.3 grams gold.

Gold Canyon Resources continued its meteoric rise, surging $9.63 to $19.63. The company recently released drill results from its Springpole joint venture with Santa Fe Pacific Gold. Results included a 10.1-metre intersection grading 16.2 grams gold, a 21.1 metre intersection grading 3.6 grams gold, and a 10.4 metre intersection grading 8.8 grams gold from three separate holes.

Akiko Gold Resources, which supposedly has the right to back-in for half of Gold Canyon’s interest in Springpole, did not react as well, adding only 18 cents to close at $1.10. Gold Canyon disputes Akiko’s back-in right, alleging the company gave up the right after being delivered a “feasibility study” on the Springpole project earlier this year.

Buyers pushed Emperor Gold up $1.10 to $2.95. The company received approval to dewater and rehabilitate an existing shaft at the old Idaho-Maryland mine in Grass Valley, Calif. The work is expected to take about a year to complete, after which time an underground exploration program will be initiated with the objective of outlining a minable gold reserve.

Silver Eagle Resources more than doubled, closing at 70 cents. The company signed a letter of intent to acquire three advanced-stage mineral properties, two in Sonora state, Mexico, and one in southern Arizona.

Hot gold markets and the start of another phase of drilling at its Bulyanhulu gold project in Tanzania helped Sutton Resources gain another $2 to close at $18.50.

The Bulyanhulu resource was last estimated at 7.2 million tonnes grading 15.1 grams gold.