STOCK MARKETS — Western markets manage to sustain recent momentum

Western markets managed to hold on to recent gains over the report period ended Feb. 20, despite gold’s slide below the US$400-per-oz. level.

The Vancouver Stock Exchange composite index touched a new high of 988.10 before slipping to 966.41 for a gain of 10.81 points on the week. The resource index finished 48.41 points higher at 1,741.69.

Alberta-listed Bre-X Minerals continues to amaze, touching a new high of $143 before settling for a gain of $23.13 at $139.13. The company released an initial resource estimate for its Busang gold project in Indonesia, projecting the measured and indicated resource at 69 million tonnes grading 2.69 grams gold per tonne plus an inferred resource of 113.5 million tonnes grading 2.66 grams gold. The company announced the completion of a $30-million financing at $120 per share, as well as its intention to split the stock on a 10-for-1 basis.

Doromin Resources came to life, up 16 cents to 40 cents. The company reports having discovered widespread, visible gold within stockwork quartz veins on its ground immediately south of Misty Mountain Gold’s Harmony gold project on the Queen Charlotte Islands of British Columbia.

Reports of the discovery of a new gold zone on its Chichiwere prospect in Ghana, West Africa, helped Carlin Resources gain 34 cents to close at $1.67. Soil sampling over the discovery returned values of up to 137 grams gold, and Carlin is now conducting infill soil sampling and trenching over the area.

Alberta-listed Fairmile Acquisitions jumped $1.66 to $3.45. The company is awaiting further assay results from drilling on its Buffalo Valley gold property in Nevada, and a Florida-based investment letter is touting the stock as a takeover candidate.

Brooks Resources took a header, plunging 67 cents to 96 cents after a local Vancouver newspaper raised questions about the background of various company principals. Brooks staged a spectacular run earlier this year, jumping from the 50-60 cents level to a high of $1.98 after announcing a deal to acquire up to a 60% interest in two Argentine properties held by Northern Orion Explorations.

Trading in Belmont Resources picked up, pushing the issue up 28 cents to 50 cents. The company is negotiating to acquire a former-producing antimony and gold property in the Slovak Republic.

Argosy Mining posted a 62 cents gain to $2.35, prompting the company to report that it is unaware of any reason for the recent trading activity. Argosy is awaiting assays from a trenching program on its Pukanec epithermal gold project in the Slovak Republic.

The start of a 3,000-metre drill program on its Discovery Mine property in the Northwest Territories helped GMD Resources touch a high of $3.50 before settling, for a gain of 51 cents, at $3.15.

The drilling will test the near-surface, bulk-tonnage potential of the former underground producer.

Nevsun Resources continues to gain ground, propelled by drill results from its 90%-owned Tabakoto project in western Mali. Recent results range up to 67.2 grams gold over 16.5 meters, helping push the issue up 73 cents to close at $5.38. A third phase of drilling is under way, and will include 8,000 metres of diamond drilling and 3,000 metres of reverse-circulation drilling to test the main mineralized zone.

Good copper and gold values from a fourth hole on the its Promintorio property in Mexico were not enough to stem profit-taking in Sierra Nevada Gold. The issue recently touched a high of $1.70 on initial drill results from the property but finished the report period down 50 cents at $1.15. The fourth hole intersected 16.7 metres grading 3.4 grams gold, 132 grams silver and 7.98% copper about 36.6 metres below hole 95-03 which returned a 25-metre intersection grading 6.2 grams gold, 105 grams silver and 7.3% copper.

The acquisition of mineral interests in Indonesia helped Zim-Gold Resources add 51 cents at $2. The company also announced a private placement financing of 500,000 units at $1.50 each.

Tako Resources, which is negotiating to acquire a mineral property in Indonesia, gained 24 cents to close at 68 cents; it is unaware of any material changes to account for the trading activity.