STOCK MARKETS — Western markets experience unspectacular drop — Cross Lake results lead to drop in stock price

The Vancouver Stock Exchange composite index lost 8.21 points, or 1.3%, to close at 616.56 over the report period ended Mar. 17. The mining index lost 14.12 points, or 2.8% to close at 491.75.

The combined value of the Alberta Stock Exchange fell 23.92 points, or 1.1% to close at 2,166.96.

Cross Lake Minerals lost 22cents to close at $1.25. The company released drill results from an additional 9 holes at its 100%-owned Sheraton-Timmins property, including 42 metres grading 2.63% zinc, 0.12% copper and 73.57 grams silver per tonne, 22 metres grading 2.02% zinc and 26.48 grams silver and 35.5 metres grading 2.2% zinc and 42.17 grams silver. The drill program has been suspended to allow the company to review the available data. Cross Lake intends to conduct additional down-hole geophysics before it resumes drilling.

El Misti Gold jumped 23cents to close at $1.15. The company received metallurgical test reports for the floatation circuit at its Santa Rosa project in Peru. A sample of sulphide ore had an 84% recovery rate for both silver and gold, a result that improves the project’s economic model. El Misti has also sent drilling equipment to its Sinchao polymetallic target, also in Peru, where drilling is expected to commence during the week of March 23.

Balaclava Mines rose 8cents to close at 53cents. The company released results from its recent 500-metre drill program at the Colpayoc project in northern Peru. Hole RCD-1 intersected 165 metres grading 0.6 gram gold per tonne, 3.8 grams silver and 0.09% copper, starting at surface. Included within the hole was a 44-metre section that ran 1.1 grams gold, 5.10 grams silver and 0.16% copper. Hole RCD-3 intersected 170 metres, starting at surface, grading 0.6 gram gold, 5.1 grams silver and 0.12% copper.

Alberta-listed Tan Range Exploration dropped 6cents to close at 72cents. The company announced that Toronto-listed Minorca Resources has completed its due diligence on the Itetemia property in central Tanzania. Minorca can earn a 50% interest in the property by paying $10 million and funding a bankable feasibility study.

Gold mineralization at the Golden Horseshoe deposit on the Itetemia property is associated with stratabound sulphide and quartz-rich facies. To date, nine reverse-circulation holes have been put down. A 10,000-metre drilling program is expected to commence shortly.

Canabrava Diamond gained a nickel and closed at $1.75. The company has agreed to sell up to 5 million special warrants: type A warrants, including for $1.50 each, and type B, for $1.80 each. The net proceeds will pay for exploration activities in Brazil and Canada, as well as provide working capital.

Alberta-listed New Indigo Resources lost 4cents to close at $2.95. New Indigo and its partner, Toronto-listed, Lytton Minerals, released resource estimates from the Jericho diamond project in the Northwest Territories. The JD/OD-1 kimberlite pipe contains an indicated resource of 5 million tonnes grading 0.93 carat per tonne. A further inferred resource weighs in at 1.1 million tonnes grading 1 carat per tonne. Resource estimates extend to a depth of 300 metres. An open-pit mining plan based on a pit depth of 180 metres assumes a minable resource of 3.8 million tonnes grading 1.01 carats per tonne with a stripping ratio of 4.2 to 1. The companies plan to extract a 30- to-50-tonne mini-bulk sample on kimberlite pipe JD/OD-3 this winter.

Further in-fill definition drilling on the JD/OD-1 pipe will continue during the summer.

Indomin Resources gained 3cents to close at 33cents. The company closed its deal with Australian-based Auridiam Consolidated, and has acquired an initial 25% interest in the Woodlark Island gold property in Papua New Guinea.