STOCK MARKETS — VSE gains some ground while ASE ends week on down note — Drill results add value to Francisco; Kalahari benefits from Sunstate deal

The Vancouver Stock Exchange composite index added 2.07 points, or 0.3%, to close at 596.13 over the report period ended Jan 27. The mining index also finished on an up-note, gaining 5.45 points, or 1.1%, and closing at 495.14. The Alberta Stock Exchange, however, dropped 24.7 points, or 1.1%, to close at 2124.28.

Francisco Gold jumped 65cents to close at $12.25. The company received further drill results from its wholly owned Sauzal gold project in Mexico’s Chihuahua state. The first nine holes drilled this season were collared along the margins of previously defined epithermal mineralization.

Highlights around the West zone include: holes 88 (57 metres grading 2.74 grams gold per tonne); 90 (40 metres grading 2.98 grams); and 92 (50 metres grading 2.64 grams). Drill highlights along the East zone include holes 91 (18 metres grading 2.01 grams gold) and 95 (57 metres of 3.46 grams). Mine Reserves Associates calculated a resource of 3.2 million oz. gold with an average grade of 2.13 grams gold; the estimate does not take into account the present drill results. Francisco has budgeted $8 million for ongoing drilling, metallurgical work and development this year.

Rupert Resources received further diamond counts from its Crown-1 drill hole at the Crown Diamond mine project in South Africa. Over the total kimberlite core length of 185.2 metres, the company recovered 84 macrodiamonds (22%) out of a total of 387 diamonds. Of these, 311 were white, transparent diamonds. Drilling continues to test the Main and Satellite pipes and the hypabyssal kimberlite bulge. Rupert’s issue fell 25cents , finishing the week at $2.90.

Kalahari Resources rose 23cents to close at $2.90 on news of a deal in the works with Sunstate Resources. The arrangement would grant Kalahari the right to earn a half interest in Sunstate’s option to acquire the Caldera 1 and 2 claims in Mexico. The properties lie northeast of the town of Pinos and comprise a total of 8,000 ha. Sunstate saw its issue rise 9cents to close at 27cents.

International CanAlaska Resources lost 1 cent to settle at 31cents . The company has also jumped on the bandwagon headed for Mexico, having recently acquired an interest in two mineral concessions. The first is 30 km southeast of the San Nicolas base metal discovery of Western-Copper and Teck; the second is 10 km southwest of Fresnello. CanAlaska has a half interest in the concessions and can earn up to 100% by issuing shares.

Initial exploration will take the form of airborne geophysical surveys followed by geochemical and ground geophysical surveys.

New Claymore Resources issues remained steady at $2.40. The company began drilling at its 370,000-acre Carmen Creek prospect, 25 km southwest of Ashton Mining’s diamond discovery property in Alberta’s Buffalo Head Craton.

Thirty targets have been selected, each of which will be drilled twice.

Donner Minerals and Alberta-listed partner Northern Abitibi watched their stocks climb 23cents and 22cents, respectively. Market activity has been attributed to a steady accumulation of shares in anticipation of continued drilling at the South Voisey’s Bay property. Donner holds 25%, Northern Abitibi holds 50%, and the remainder is held by project operator Teck.

Unremarkable drill results from a previous 9-hole program at Cross Lake Minerals’ Sheraton-Timmins property pushed its stock down 29cents to close at $1.15. The company is engaged in a 5,000-metre program with two rigs on site. Drilling is targeting a geophysical anomaly down-plunge of the copper zone, 500 metres southeast of hole No. 28.