STOCK MARKETS — Voisey’s Bay juniors head south on release of assays — Drill results also prove damaging to Cross Lake, Ontario partners

The Vancouver Stock Exchange composite index slipped below the 600 level during the report period ended Dec. 16 to close at 584.19, down 23.21 points, or 3.8%. The mining index was off 17.84 points, or 3.6%, finishing at 475.7. The combined value of the Alberta Stock Exchange fell 109.07 points, or 4.8%, to close at 2,172.26.

Donner Minerals and Alberta-listed Northern Abitibi Mining went into a tailspin following the release of less-than-spectacular assay results for a 15.7-metre-thick massive sulphide intersection from hole 96 at their South Voisey’s Bay project in Labrador. Nonetheless, the intercept averaged a respectable 1.13% nickel, 0.78% copper and 0.2% cobalt. The property is held equally by Donner and Northern Abitibi, with Toronto-listed Teck holding the right to earn half of Donner’s interest. Donner fell 90 to close at 82, whereas Northern Abitibi shed 52 to close at 63.

Donner’s loss trickled down to the company’s other partners in the area: Cypress Minerals slipped 6 to 23; Major General Resources was down 8 to 27; Mandorin Goldfields was off 3 to 11; NDT Ventures lost 3 to close at 31; Curion Ventures dropped 7 to 25; BMA Mining shed 18 to close at 27; Latitude Minerals lost 2 to finish at 17; Layfield Resources said goodbye to 1 to close at 7; and Essex Resources also lost a penny, closing at 53.

Aranlee Resources bucked the trend, tacking on 1 to close at 14.

Cross Lake Minerals was hit hard on the release of assay results from ongoing drilling at its Sheraton-Timmins property. The holes were designed to test the plunge of the Main zone, which was previously intersected by hole 16. That hole returned a 13.5-metre true width averaging 6.7% zinc, 1.98% lead, 0.18% copper and 215 grams silver per tonne. Hole 21 returned 24 metres averaging 2.16% zinc, 0.12% lead, 0.4% copper and 52.8 grams silver, plus 3 metres of 4.52% zinc, 0.44% lead, 2.74% copper and 222 grams silver.

The market’s disappointment with those results translated into a $1.73 loss for the company. The issue closed at $1.73.

The property adjoins the Nighthawk project, which is 60%-owned by Toronto-listed Golden Knight Resources, 16% by Cross Lake, 16% by East West Resource and 8% by Canadian Golden Dragon Resources. East West closed down 23 at 38, whereas Canadian Golden Dragon was off 20 at 39.

Argentina Gold was up 18 at $1.08. A 20,000-metre drill program began at the company’s Veladero gold project in San Juan, Argentina. Initial drilling will focus on the Filo Federico target, a 2,000-by-500-metre zone of highly silicified re-brecciation. At the end of last season’s program, hole 55 intersected 168 metres averaging 2.7 grams gold and ended in strong mineralization. The Veladero project is a joint venture with Toronto-listed Barrick Gold, which holds a 40% interest.

Alto Minerals and partner Noront Resources completed a preliminary 3-hole drilling program at their jointly held Windfall Lake base metal and gold project in northwestern Quebec. The final hole intersected sulphides over a length of 27 metres and was stopped in mineralization. Alto closed down 7 to 52, whereas Noront dropped 9 to 43.

Island-Arc Resources has concluded negotiations with six junior companies to acquire their interests in the Back Lake diamond claims in the Northwest Territories. The issue was up 7 at 27.