STOCK MARKETS — Western markets see resource index slip

Western markets continued to trend downward over the report period ended July 16.

The Vancouver Stock Exchange composite index fell 74.3 points to 1,101.43, while the resource index slid through the 2,000 level, closing down 99.6 points at 1,954.46.

Valerie Gold Resources took a hit on the release of assay results from 16 holes, which tested five areas of the Mamatla property in Mexico. The issue dropped to $15.25 for a loss of $3.25. Drilling at the Capire and Aurora 1 areas has identified a near-surface, mineralized zone some 30 metres thick over an 800-metre-long section. Results included 43.1 metres grading 0.25 gram gold and 123.5 grams silver per tonne, plus 2.06% zinc, 0.83% lead and 0.16% copper (including 6.9 metres of 0.74 gram gold and 476.3 grams silver, plus 7.08% zinc, 3.26% lead and 0.64% copper) for hole 96-4. At Cruz Blanca, 4 km east of El Capire, results from three holes included a 4.5-metre interval grading 0.82 gram gold and 282.8 grams silver, plus 2.1% zinc, 0.9% lead and 0.26% copper in hole 96-8. The Yerba Buena zone, a second mineralized system 2 km north of Cruz Blanca, was tested by hole 96-18, which intersected 20.8 metres grading 0.16 gram gold and 57.5 grams silver, plus 5.61% zinc, 2.14% lead and 0.06% copper. To date, 36 holes have been drilled at Mamatla.

Copper and nickel grades returned in hole 96-3 from the Hawk Ridge property in Quebec caught the market’s eye. Alberta-listed Troymin Resources climbed as high as $3.70 before closing at $2.40 for a gain of $1.38, while partner International Butec Industries reached $4.50 before falling back to $2.60 for a 70 cents gain.

Up to a 65% interest in the 220-sq.-km Mount Kare prospect in the highlands of Papua New Guinea can be acquired by Madison Enterprises from Australian-listed Carpenter Pacific Resources. Terms of the option agreement call for a payment of US$320,000 and exploration expenditures of US$8 million over a 5-year period. Mount Kare is contiguous to, and lies within, the same structure as the Porgera gold mine. Previous drilling returned intersections ranging from 0.22 gram gold over 60 metres to 11.2 grams over 38 metres.

Madison closed up 50 cents to $1.45.

Preliminary sampling by Tapestry Ventures on the Florence Lake nickel properties in central Labrador recovered four grab samples from the Baikie showing. Results included 8.1-9.76% nickel, 0.22-0.79% copper and 0.21-0.25% cobalt. The showing is hosted by an altered ultramafic komatiite flow and exposed over a length of 6 metres in a low, boggy area. Tapestry, which is earning a 50% interest from Toronto-listed Falconbridge, slipped 14 cents to finish at 80 cents.

Sterling Pacific Resources was up 2 cents at 26 cents after reaching an agreement to acquire a half interest in a Nevada heap-leach prospect amenable to open-pit mining. Sterling must spend at least US$710,000 and place the Como property into production to earn its interest.

Britannia Gold closed at $2.35 for a gain of 52 cents. The company is currently active in Peru, with field programs under way on many of its holdings. Drilling is set to begin on the 3,000-hectare Amanda gold property in the northern part of the country, near Arequipa Resources’ Pierina and Paron properties. Elsewhere in the country, drilling is testing the Boca del Tigre gold property, where Britannia has optioned a 60% interest to Toronto-listed Solitario Resources. Much farther north, at the Lexington gold-copper project in British Columbia, Britannia and its joint-venture partner Bren-Mar Resources are nearing the completion of an exploration decline.

Bolivian explorer Eaglecrest Explorations closed down $1 to $2. The company recently drilled 10 holes in the Paititi pit area at the San Simon gold project, and is now drilling the Trinidad-Bonanza concessions, with six holes completed to date. Assay results are pending.