STOCK MARKETS — Western markets respond to firmer gold

Further strength in the price of gold helped to turn western markets around, with the Vancouver Stock Exchange resource index posting a 26.24-point gain to 1,671.27.

The composite index also closed higher during the report period ended May 24, edging up 3.28 points to finish at 1,031.68.

Gold broke back above the US$380-per-oz. level, adding more than US$7 to trade at US$387 per oz.

Arlo Resources continued to gain ground following the announcement of acquisitions in Panama and Mongolia, as well as a funding deal through NASDAQ-listed MK Gold and Panama-based Min America. Arlo added 31 cents to close at $1.95.

Trading in Goldnev Resources was hectic, with more than 4.7 million shares changing hands. As a result, the issue jumped as high as $2.13 before closing at $1.65 for a gain of 75 cents.

There seems to be no obvious reason for the move, except for a company statement regarding the profitability (given the recent surge in copper prices) of its half-owned Goldstream copper-zinc mine near Revelstoke, B.C. Investors were not nearly as excited about Toronto-listed Bethlehem Resources, which owns the other half of the mine, selling the issue down 4 cents to 57 cents.

Goldnev has about 11.4 million shares outstanding, while Bethlehem has about 20.3 million outstanding, including a recently completed issue of two million special warrants at 44 cents each.

Athena Gold is not holding up well in the wake of losing Pegasus as a partner at its Talapoosa gold project in Nevada last month.

The issue slipped 20 cents to 75 cents on thin trading.

The intersection of kimberlite at the Aylmer Lake property in the Northwest Territories gave Winspear Resources a 39 cents boost to $1.09. The property is 32.5%-owned by Winspear and 33.075%-owned by Adex Mining, while Toronto-listed SouthernEra Resources can earn a 34.425% interest. Adex added 7 cents on the news to close at 35 cents, while SouthernEra slipped 12 cents to $6.13.

Golden News Resources traded up 24 cents to finish at $1.50. The company is developing its Luz del Cobre in situ copper project in Mexico, and preliminary evaluation of nearby gold zones has returned positive results. The discovery of a 5.51-carat, white, high-clarity diamond from the Sloan property in Colorado helped Royalstar Resources add 8 cents to $1.83. Toronto-listed Dia Met Minerals is earning a 51% interest in the property and is currently evaluating a 3,000-tonne sample from the Sloan 2 pipe. Royalstar estimates the macrodiamond count now stands at more than 20 carats per 100 tonnes.

Trading in Haddington Resources heated up, with more than 2.5 million shares changing hands. This helped boost the issue 32 cents to 75 cents. The company is establishing an exploration division based in Pickering, Ont., and the market is apparently anticipating the acquisition of some exciting properties in the Timmins-Shining Tree areas of Ontario.

Tenajon Resources continued to lose ground, slipping 16 cents to 75 cents as investors digested exploration results from the Cross Lake joint venture in the Northwest Territories.

Toronto-listed Ashton Mining expects to resume drilling on the property in late June and additional diamond analysis results from previous work are due at about the same time.

Ashton slipped 9 cents to close at $2.11.

Merger partners Ambergate Explorations and Kenrich Mining both gained ground on anticipation of summer drilling programs on the companies’ large ground position in the Eskay Creek area of northwestern British Columbia. The companies, which plan to merge, both finished up 15 cents at 78 cents.