STOCK MARKETS — Western markets continue to plumb depths

The pool keeps getting deeper and deeper as western markets attempt to quantify the “bottom” in the term “bottom fishing.”

The Vancouver Stock Exchange resource index plunged more than 62 points to close at 1,127.12 while the composite index dipped 10.48 points to 717.84 over the report period ended Jan. 31.

A weak Toronto Stock Exchange, along with worries over the economic future of Mexico and its effect on Latin American countries, combined to provide little buying incentive for the junior resource market.

Gold prices did not help matters, dropping about US$5 per oz. to the US$376-per-oz. level.

Abo Resource took top trading spot, with just over 2 million shares changing hands, pushing the issue up 4 cents at 74 cents. The company reached an agreement with Toronto-listed Bema Gold to acquire up to 100% of Bema’s interest in the Uspallata project, as well as a portion of the Antofalla project. Both are in Argentina.

Bema has negotiated the right to acquire a half interest in Uspallata (which covers several porphyry copper-gold targets) and a 75% stake in Antofalla (which is believed to have the potential for large gold porphyry deposits). Trading in Murgor Resources remained active; the issue traded more than 1.7 million shares and reached a new high of $2.25 before settling for a gain of 26 cents at $2.10. The company hopes to begin drilling soon at its recent gold discovery in northwestern Quebec.

Sutton Resources was at a loss to explain the $6.38 drop in its share price to $20.38. The company is exploring and developing two nickel-cobalt-copper projects and a gold concession in Tanzania, as well as the Marudi Mountain-Mazoa Hill gold property in Guyana.

The British Columbia government’s decision to cancel Alcan’s Kemano II power project, with no compensation, has tarnished the province’s image, and companies looking to attract investment are likely to suffer for it. Taseko Mines took a hit, closing down $2.50 to a 52-week low of $12.50. The company is searching for a buyer for its huge Fish Lake copper-gold porphyry deposit in British Columbia.

El Condor Resources, which is controlled by the same group as Taseko, also lost ground, slipping 38 cents to $5.25. El Condor also hopes to attract a buyer for its 60% interest in the South Kemess copper-gold porphyry deposit in north-central British Columbia. St. Philips Resources, which owns the remaining 40%, slid 15 cents to $2.

A 114-ft. intersection grading 18.2 oz. silver per ton, plus 27.5% lead and 3.8% zinc, on the East Tintic project in Utah helped Akiko Gold edge up 2 cents at 70 cents. The company is earning a half interest in the project, where drilling is ongoing, in an attempt to confirm and expand previous estimates of proven and probable minable reserves of 1.14 million tons grading 19 oz. silver per ton, 22% lead and 7.6% zinc.

Market weakness caused Arequipa Resources to fall 8 cents to 58 cents. The junior has completed a $2.1-million financing at 75 cents per share, proceeds from which will be used to fund ongoing exploration and development in Peru. Pacific Vangold Mines continues to lose ground amid poor markets, slipping 31 cents to 70 cents. The company is working to develop additional gold reserves at its Evening Star mine and at the nearby Iron Colt joint venture with International Silver Ridge Resources in Rossland, B.C. Silver Ridge finished unchanged at 65 cents.

Dal Brynelsen, president of Vangold, could think of no explanation for the drop in his company’s share price.

An upgraded geological resource of 8.8 million tons grading 1.76% copper plus 0.015 oz. gold and 0.22 oz. silver for the Minto property in the Yukon was little help to Minto Explorations. The issue finished unchanged at the $1 level and the company is continuing with feasibility work.

The takeover of Athena Gold is now complete. Toronto-listed Miramar Mining owns all the outstanding shares of Athena, having issued one share for every 2.8 shares of Athena.