STOCK MARKETS — Western markets follow eastern slump

Western markets followed their eastern cousins down over the trading period ended June 21, despite strength in gold and other commodities.

The negative investment sentiment pushed the Vancouver Stock Exchange composite index down 35.99 points (or about 3.5%) to 984.68. Although gold’s strength above the US$390-per-oz. level no doubt lent support, the resource index also lost ground, closing off over 17 points at 1,647.31.

Despite the weak markets, there were some buyers.

September Resources surged 22 cents on more than 1.8 million shares to close at 59 cents.

September, which is part of the Prime Equities International group of companies, is negotiating to acquire an interest in a property in Alaska. Investor interest continued to push up Argosy Mining, which added 21 cents to close at 92 cents.

The issue has more than doubled since announcing the discovery of new kimberlite pipes on its diamond interests in Zimbabwe.

The potential acquisition of a gold property with proven reserves in the Russian Federation, as well as a possible joint venture in China, helped Richland Mines.

The company is sending a geological engineer to Russia to initiate a due diligence review of the project and such a review of the Chinese proposal is continuing.

Richland finished up 32 cents at 80 cents on more than 1.6 million shares. Pacific Vangold Mines did well, adding 25 cents to finish at $1, after acquiring the right to earn an 87.5% interest in a concession in Uganda, comprising more than 2,000 sq. km.

The concession is on the border with Tanzania and covers the northern extension of the nickel-cobalt belt being explored by BHP Minerals and Sutton Resources.

Profit-taking trimmed some of the recent gains made by Goldnev Resources, pushing the issue down 33 cents at $1.95.

Goldnev is acquiring Oregon-based Okanogan Gold Mining’s interest in the Zackly property in Alaska in return for 2.2 million shares of the company. Zackly contains a drill-indicated resource of 1.4 million tons grading 0.13 oz. gold and Toronto-listed Hemlo Gold Mines is earning a half interest in the project.

Gold Canyon Resources and Akiko Gold Resources both edged up after announcing they are concluding a formal joint venture agreement with New York-listed Santa Fe Pacific Gold on their Springpole project in Ontario. Akiko added 6 cents to close at $1.25 while Gold Canyon finished up 2 cents at 57 cents.

Springpole is estimated to contain 27 million tons grading 0.035 oz. gold. Goldbelt Resources slipped a dime to 89 cents despite announcing a private placement of 4.75 million units at 90 cents each.

The company plans to use the proceeds to fund further work on its half-owned gold-silver tailings project in Kazakhstan.

Bids for Golden Unicorn Mining dried up, leaving the issue down 22 cents at 19 cents after the company announced it will not be proceeding with the acquisition of 51% of Gee Gee Mines.

Gee Gee holds claims in southeastern British Columbia, which were rumored to contain a large diamond find.

Golden Unicorn, which has hired a security company to guard the claims, hit a high of $1.85 on the rumors.

The company reports that subsequent work on the property by its geological consultant did not uncover any diamonds, kimberlites or even kimberlite indicator minerals.

Oracle Minerals edged up 7 cents after releasing a 44.3-ft. intersection grading 0.15 oz. gold from its San Matias project in El Salvador. Oracle can acquire the property from Mirage Resources subject to a 5% net profits interest.