STOCK MARKETS — Summer doldrums descend on western markets — Investors adopt wait-And-see strategy for projects in Timmins camp

Junior companies are pulling in their horns and preparing for a quiet summer in the hope that market prospects and gold prices will improve this autumn. While many companies are finding that it is not easy raising the necessary funds (what with investor sentiment still negatively affected by the Bre-X fiasco), most have sufficient cash in the till to keep working through the summer season. On a more positive note, it appears some bottom-fishers are managing to generate a few ripples in the marketplace.

After all, as brokers are fond of reminding their clients, the best time to buy is when prices are low.

The Vancouver Stock Exchange composite index lost 2.71 points, to close at 801.8, whereas the mining index was down 4.16 points, to finish at 713,81.

The combined value of the Alberta Exchange also resulted in a quiet week, down 13.06 points, to end the report period at 2,327.45.

The most active issue on the Vancouver Exchange, though off a nickel at 49 cents, was Cross Lake Minerals. The junior is exploring a massive sulphide prospect in the Timmins camp of Ontario. Investors appear to be watching the project with a wait-And-see attitude that reflects the current climate of caution.

Fairing better was Canadian Golden Dragon Resources, which climbed 14 cents at 40 cents. The junior has a 20% interest in Cross Lake Minerals’ massive sulphide prospect.

Also bucking ahead was Greystar Resources, which gained 33 cents to finish the report period at $1.48. The junior, together with equal partner Churchill Resources, is exploring the Angostura property in Colombia. The latest results are attracting attention, which is not surprising considering that one of the best holes hit 98.4 ft. grading 0.56 oz. gold per ton (including 26.2 ft. of 1.5 oz.). Greystar is headed by David Rovig, a mining engineer previously involved with the New World gold-copper deposit in Montana.

Northwest Territories diamond explorer Winspear Resources eased off during the week, shedding 8 cents to settle at $1.67, though this is a reflection of activity prior to the release of the latest drill results from the Camsell Lake project. The update referred to the 383 diamonds recovered from 137.14 kg of core, which intersected several kimberlite dykes on the western shore of Snap Lake. Almost half the diamonds are white and 39.2% are yellow, with a few greens and pinks mixed in. Winspear has a 57.3% interest in the Camsell Lake joint venture, with Toronto-listed partner Aber Resources holding a 42.7% stake. More work is required to test the extent of the targets, which, so far, appear to be limited in size.

Mexican explorer Francisco Gold continued its downward slide — off a further 70 cents at $17.30 over our report period. New results were released from the third phase of drilling at the company’s Sauzal gold project in Chihuahua state. The program tested a new target area called the West Lip zone, with the discovery hole intersecting 96.7 metres averaging 1.34 grams gold per tonne. The program, which is ongoing, also included extension and infill drilling on the East and West zones.

El Misti Gold regained investor confidence over the report period and surged ahead to $1.46, for a gain of 50 cents. The junior recently closed a private placement of 1.4 million units priced at 92 cents each. Proceeds from the deal will be used to explore and develop the company’s San Nicolas gold-silver sulphide mine in Peru. The company has retained the services of a private firm to calculate a resource estimate.