STOCK MARKETS – Western markets post gains — Northern Abitibi, Donner trading heats up as drilling nears

The Vancouver Stock Exchange composite index gained 14.83 points, or 2.4%, to close at 626.95 over the report period ended March 31. The mining index also closed on a positive note, adding 5.98 points, or 1.2%, to close at 497.27 points.The combined value of the Alberta Stock Exchange added 33.72 points, or 1.6%, to close at 2205.51.

Alberta-listed Northern Abitibi Mining topped the charts this week, gaining 23cents to close at $1.75. The company announced the 1998 exploration plans for its 50%-owned South Voisey’s Bay property in Labrador.

About $3.4 million has been budgeted for the first phase of this year’s exploration program. It will include detailed geophysical surveys and 9,400 metres of drilling. An extra $978,971 will be set aside as a contingency budget. If results are good, a second phase will follow. The maximum amount currently budgeted for the Northern Abitibi property is $5.8 million.

Joint-venture partner Donner Minerals will split the exploration bill evenly with Northern Abitibi. Toronto-listed Teck, which can earn 25% of Donner’s 50% interest, has been contracted for field operations. Donner gained 22cents to close at $2.40.

Greystar Resources jumped 16cents to close at $1.15, after results from the company’s La Alta deposit in Colombia were released. Highlights include 7 metres grading 3.93 grams gold per tonne and 20.38 grams silver and 9 metres grading 13.1 grams gold and 46.72 grams silver in hole 5 and 11 metres grading 43.37 grams gold and 19.69 grams silver in hole 6.

Alberta-listed Redwood Resources gained 12cents to close at 75cents, while its exploration partner, Montello Resources, lost 6cents to close at 40cents. The juniors have been searching for kimberlite on their Jazz claim block in the Buffalo Hills region of Alberta. Their initial drill program failed to hit kimberlite; they are now gearing up for another try.

War Eagle Mining jumped 9cents to close at 39cents. The company released results from its Promontorio lead-silver-gold project in Sonora state, Mexico. Hole P9 intersected 90 ft. grading 14.8 oz. silver, 0.12 oz. gold, 2% lead, 2.84% zinc and 0.07% copper, including a 15-ft. interval grading 47.9 oz. silver, 0.22 oz. gold, 2.28% lead, 7.50% zinc and 0.25% copper.

Hole P10 intersected 30 ft. grading 0.47 oz. silver, 0.006 oz. gold, 0.14% lead and 0.16% zinc at a depth of 90 ft., 75 ft. grading 0.14 oz silver, 0.007 oz gold, 0.03% lead and 0.05% zinc at at depth of 350 ft. and 20 ft.

grading 0.55 oz silver, 0.008 oz gold, 0.12% lead and 0.21% zinc at a depth of 450 ft. The company is having check assays performed.

El Misti Gold lost 35cents to close at $1.40. The company updated progress at the Santa Rosa prospect in Peru. At the Sinchao polymetallic property, also in Peru, the ill effects of El Nino have delayed the start of drilling, which is now scheduled for later this month.

Peruvian Gold lost 24cents to close at 75cents. The company has entered into an agreement with Gabriel Resources to acquire all of Gabriel’s shares at 1.4 shares Peruvian for each share of Gabriel. The offer is subject to shareholder approval. Peruvian’s $2.8 million in working capital is expected to help fund development and exploration of Gabriel’s properties in Romania and Bulgaria. Gabriel’s issues last traded at $1.