STOCK MARKETS — Western markets relax as Labrador players lose ground

Western markets weakened during the week ended Oct. 17, helped along by slipping Voisey Bay issues.

The Vancouver Stock Exchange composite index lost 17.85 points to close at 805.75 while the resource index finished down 17.7 points at 1,311.79.

Several prominent players in the Labrador exploration rush lost ground over the period, including NDT Ventures, which touched a new low of $2.05 before closing down 41 cents at $2.21, and Alberta-listed Takla Star Resources, which lost $1.38 to finish at $4.50.

Preliminary drill results from the Boundary Block claims in the Voisey Bay area left shareholders of Dentonia Resources, Dragoon Resources and Consolidated Brenzac Development gasping for air as all three issues plunged. The three companies had touched highs of $1.69, 80 cents and $1.50, respectively, on reports of several sulphide intersections containing mainly pyrrhotite. However, preliminary assay results from the first hole returned only anomalous values of copper, nickel and cobalt.

Dragoon and Brenzac are each earning a 25% interest in the property from Dentonia. Dentonia lost 61 cents at 84 cents, while Dragoon slid 23 cents to 43 cents and Consolidated Brenzac dropped 59 cents to 70 cents.

Alberta-listed Bre-X Minerals put in a strong performance, rocketing up $11.37 to $29.25. The company continues to expand the size of its 90%-owned Busang project in East Kalimantan, Indonesia. Based on a cutoff grade of 0.5 gram gold per tonne, the measured, indicated and inferred resource is now estimated at 35.1 million tonnes grading 2.44 grams gold.

Partners Tueton Resources and Minveta Enterprises continued to gain ground following the release of high-grade gold values in trenching (up to 122.9 grams gold over 5.5 metres) on their Red Mountain area property near Stewart, B.C.

Tueton added 65 cents to close at $1.55, while Minveta jumped 72 cents to $2.32.

The companies are mobilizing a rig to the property and plan to drill six to eight holes to test the high-grade shear structures at depth.

American Mineral Fields hit the market with a bang. The company completed a private placement of 4 million units at $1.25 each and managed to close at $4.10 on the first day of trading. Proceeds from the placement will be used to fund the purchase of a Brazilian company that owns two diamond mining properties. Previous work on both properties established the existence of alluvial diamond deposits, as well as kimberlites, on one of the properties.

Plans to acquire two gold properties in Mexico lit a fire under Farallon Resources. The issue touched a high of $1.70 before finishing up 30 cents at $1.45.

The two properties increase Farallon’s ground position to more than 54,300 hectares within a volcanogenic massive sulphide district that hosts more than 20 known massive sulphide occurrences. Plans for a large-scale exploration program are under way.

Assay results from a new zone on the Hearne Hill property near Smithers, B.C., gave Booker Gold Explorations a 90 cents boost to $2.65. Results include a 156-metre interval grading 1.03% copper and 0.43 gram gold. Additional assay results are pending, and Booker expects to continue drilling throughout the winter.

An agreement with Ivanhoe Capital and Robert Friedland gave Alberta-listed Birch Mountain Resources a $3.20 boost to $4.90. The agreement involves the acquisition of an interest in a block of “highly prospective” mineral exploration lands in West Kalimantan, Indonesia.

Regeena Resources continued to gain ground, hitting a high of $2.40 before settling at $2.08 for a gain

of 29 cents.

The company will drill the Cucaracha property in Chile in order to test a copper-gold mineralized replacement zone within a flat-lying limestone unit.

Regeena can earn a 70% interest in the property by spending US$2.3 million over 36 months and issuing 1 million shares in stages.