STOCK MARKETS — Western markets slide further into slump

Western markets continue to languish amid a slipping gold price and despite recent price appreciation in base metals.

The Vancouver Stock Exchange composite index managed to edge up 2.22 points to 836.01, while the resource index traded up almost eight points to finish at the 1,356 level for the report period ended Nov. 1.

An intersection of massive sulphides on the Rendell-Jackman property in Newfoundland gave Major General Resources a boost, pushing the issue up 11 cents at 40 cents. The best interval over a 38-metre intersection included 8.4 metres grading 6.22% zinc, 0.8% copper, 1.38% lead, 46.5 grams silver and 0.28 grams gold per tonne. Drilling is continuing in an effort to test the base metal intersection further, as well as to expand gold reserves on the property’s Hammerdown zone. At last report, Hammerdown contained an estimated geological resource of 385,000 tonnes grading 16.4 grams gold. Sway Resources continued to hold investors’ attention, adding a further 11 cents to close at 75 cents on more than 1.5 million shares. The company has reported a 7.6-metre intersection grading 34.5 grams gold at its Franklin Camp claims in southern British Columbia, and now plans to option out a 50% interest in the property to Alberta-listed Marum Resources.

Marum can earn the interest by spending $300,000 and can buy a further 10% interest for $1 million. Assay results from holes drilled around the high-grade intercept are pending. Marum added 9 cents on little volume, to finish at the 25 cents level.

The acquisition of options on 20 gold exploration properties in Ecuador gave Hurley River Gold a 60 cents boost to $1.90. The company can acquire the properties by the staged issuance of 1 million shares and the expenditure of a minimum of US$1 million over a 2-year period.

St. Philips Resources did well, trading as high as $3.30 before closing up 40 cents at $2.99. A company spokesman said two investor newsletters in the U.S. recently made positive comments about the company. St. Philips and 60% joint-venture partner El Condor Resources are searching for a buyer for their South Kemess copper-gold project in British Columbia, where a minable reserve of 200 million tonnes grading 0.22% copper and 0.6 grams gold have been outlined. El Condor edged down 38 cents at $5.75.

Newly listed Summo Minerals did well in its first week of trading, reaching a high of 93 cents before finishing at 75 cents, up 15 cents from its 60 cents listing price. The company hopes to develop an open-pit, heap-leach, solvent extraction-electrowinning copper mine at its Lisbon Valley property in Utah. Chase Resources edged up 15 cents to $2.65 after announcing it has revised its option agreement on the Taysan Copper project. The company now has the right to acquire all shares of the Philippine company that owns the property. The resource at Taysan was last estimated to contain about 540 million tonnes grading 0.3% copper plus 0.3 grams gold. Chase has been working to define a higher-grade core to the deposit, but no estimates have been released. A third phase of drilling is planned at the Rainbow property near Kamloops, B.C. Teck, the operator, and 30% owner Getchell Resources plan to test the updip limits of a recently discovered copper zone to determine if it has the potential to be mined by open-pit methods. Getchell slipped a nickel to close at $1.75.

Additional drill results from the Red Chris project in British Columbia gave American Bullion Minerals a boost, kicking the issue up 51 cents to $3.45. Some of the better results include a 225.6-metre intersection grading 0.9% copper and 0.99 grams gold in hole 94-109 and a 64.9-metre intersection in 94-113 grading 0.91% copper and 0.83 grams gold.

A 4.57-metre intersection grading 16.8 grams gold at the Gertrude claim, near Rossland, B.C., was little help to owner Pacific Vangold Mines, which slipped 6 cents to close at $1.60. The intersection is about 30 metres downdip from the 1991 discovery hole, which returned 4.51 metres grading 14 grams gold. Stepout drilling is continuing.