STOCK MARKETS — Western markets push ahead as gold stalls

Although the rally in bullion markets failed to propel the yellow metal through the US$400-per-oz. level, western markets managed to hit a high note at the end of the report period ended Jan. 16.

The Vancouver Stock Exchange resource index added 35.78 points to close at 1,371.49, while the composite index gained 6.31 points to finish at 828.83.

The release of another slough of impressive drill results from the Busang gold project in East Kalimantan gave Alberta-listed Bre-X Minerals a $16 boost to $84.00. Assay results included a 1,565-ft. intersection grading 0.11 oz. gold per ton and a 738-ft. intersection grading 0.15 oz. gold.

Partners Teuton Resources and Minvita Enterprises took a hit after releasing assay results from drilling on their property near Red Mountain, B.C.

The eagerly awaited results, from drilling completed back in November, featured high-grade gold intersections, including: 1.85 oz. gold over an estimated true width of 13.8 ft., and a 1.68-oz. intersection over an estimated true width of 5.6 ft.

Investors, however, were expecting more, selling off Teuton at $1.10, for a loss of 60 cents, while Minvita shed 70 cents to close $1.35.

The dispute over ownership of rights to the Campo Morado and Alina concessions in Mexico’s Guerrero state continues to brew between Farallon Resources and Summex Mines.

The latter says it has an agreement in place to acquire the private Mexican company that owns the properties, and disputes the validity of Farallon’s option to acquire the properties from the same Mexican company.

Investor sentiment appears to favor Farallon, which added 55 cents to close at $4.60, whereas Summex slid 25 cents to 75 cents.

Champion Resources hit a new high of $1.10 before settling back to 90 cents, for a gain of 19 cents over the week.

The company entered an agreement with Toronto-listed Tombstone Explorations to earn a half interest in that company’s 80%-owned Minoro project in Honduras.

Historic exploration on the property outlined two areas of copper-gold mineralization and two areas with known gold mineralization. Previous drilling on one of the copper-gold zones returned values of up to 394 ft. grading 1.45% copper and 0.055 oz. gold.

Mar-West Resources, which holds the remaining 20% interest in Minoro, added 14 cents to close at 77 cents.

The release of a positive feasibility gave thinly traded Minto Explorations a 20 cents boost to a new high of $1.40. The company is working to develop an open-pit mine and mill at its Minto property in central Yukon; it projects annual copper output at 27 million lb. at a cost of US57 cents per lb. net of precious metal credits.

Minto also expects to land financing for the $30-million project within the next few weeks.

First Western Minerals took a hit, dropping 38 cents to 73 cents after releasing drill results from its Mont-Paul property in the Gaspe Peninsula of Quebec.

The results include a 28-ft. intersection grading 2% nickel and 0.02% cobalt, plus an 11-ft. intersection grading 2.7% nickel and 0.07% cobalt.

The release of results from a mini-bulk-sampling program on the Fort a la Corne project in Saskatchewan gave Kensington Resources a lift. The issue touched a high of $1.70 before settling for a gain of 25 cents at $1.39.

Eight large-diameter holes were drilled on separate targets in order to recover mini-bulk samples. Grade results for 1-mm stones or larger ranged from zero up to 0.075 carat per tonne, based on a 20-tonne sample from one target.

Namibian Minerals posted a gain of 50 cents to close at $2.60 after releasing sampling results from its Luderitz diamond grant, off the coast of Namibia.

The sampling returned 215 diamonds from a single sample site, representing what Namibian says is the highest diamond count ever reported from a single sample from the western coast of southern Africa.

Five other samples from the area returned counts of 15 diamonds or more, and further testing is under way.

Stellar Gold backtracked, falling $1.20 to close at $4.30. The company recently announced details of an agreement giving BHP Minerals the right to earn a 70% interest in its Palawan lateritic nickel project in the Philippines.