STOCK MARKETS — Western markets kept afloat by resource issues

Western markets continued to push ahead over the report period ended Jan. 30. The Vancouver Stock Exchange composite index added 21.5 points to close at 886.79, while the resource index rolled upwards by 56.27 points to finish at 1,548.53.

South Atlantic Diamonds soared to 90 cents before closing at 58 cents, for a gain of 21 cents, following an announcement it had entered into an agreement with Mylan Ventures to joint-venture the Santo Antonio diamond concessions in the Coromandel district of Brazil. Mylan can acquire a 60% interest in the alluvial mining rights in return for developing and financing the project to production by year-end. As part of the agreement, South Atlantic will invest US$500,000 in a private placement being undertaken by Mylan.

The latest hole from ongoing drilling at the joint-ventured New Burgin polymetallic deposit in the Tintic district of central Utah returned 92 ft. averaging 18.8 oz. silver per ton, plus 24% lead and 6.7% zinc for hole CB-20. The proven and probable reserve, prior to the 20 holes drilled to date by the joint venture, was estimated at 1.03 million tons grading 20 oz. silver per ton, 22% lead and 8% zinc. Akiko Gold Resources and Korea Zinc are each earning a 25% interest from property owner NASDAQ-listed Chief Consolidated Mining. Akiko closed up 16 cents at 92 cents.

Partial assay results from winter drilling on the Springpole Lake joint venture in northwestern Ontario include 50 ft. of 0.08 oz. gold for hole 156, 5 ft. of 6.03 oz. for hole 157 and 86 ft. of 0.035 oz. for hole 158. The project is a 50-50 joint venture between Gold Canyon Resources and NYSE-listed Santa Fe Pacific Gold. To date, 10 holes comprising 4,800 ft of a planned 20,000-ft. program have been drilled. Hole 157 is one of five holes that contains visible gold. Gold Canyon finished up $2.25 at $9.75.

Alberta-listed Stratabound Minerals slipped $1.05 to close at $3.65 on further news from the Taylor Brook property, near Bathurst, N.B. Hole 18 stepped out 330 ft. east of hole 17 and intersected a 137-ft. sulphide zone beginning at a depth of 1,336 ft. The zone is described as relatively weak and characterized by 2-5% sulphide stringer mineralization. The best interval is a heavy concentration of pyrite and sphalerite stingers over a 7.8-ft. intercept. Hole 17, in comparison, intersected a 100-ft. thick sulphide zone containing six massive sulphide intervals. Hole 19, the third in the 6-hole program, is being drilled to test downdip of hole 17.

Chapleau Resources added 38 cents to close at $1.73. The company is drilling the Shingle Gulch property in northern New Brunswick. It has reported hitting a 50-ft. intersection containing 15-20% sulphides in hole 96-6 and a 350-ft. zone of sulphides in hole 96-10. Assay results are pending. Chapleau, which is earning a 50% interest from Alberta-listed PGE Resources, is carrying out a 40-hole program on the 6,800-acre property, testing several geophysical anomalies correlating to surface geochemistry. PGE added 80 cents to finish at $5.25.

Assay results from the remaining six holes drilled at the Segali concession in Mali, included 35.6 metres grading 5.5 grams gold per tonne for hole 32. Based on drilling to date, Oliver Gold has upgraded the resource estimate for the Main zone to more than 11 million tonnes grading 2.80 grams. The Segali concession is one of several properties belonging to Consolidated Mining of South Africa, in which Oliver can earn 50% interest. Oliver closed up 17 cents at $1.80. Following a coup d’etat in Niger, West Africa, Etruscan Enterprises has returned to business as usual at its Koma Bangou gold project and Tiawa concession. The company experienced no significant interruptions to its programs and has no intention of altering exploration and development plans. The issue slipped 35 cents to close at $3.95.