STOCK MARKETS — Western markets slip as composite, mining lose footing — Few juniors able to weather foul investor mood

The Vancouver Stock Exchange composite index dropped 38.16 points, or 6.2%, to close at 579.20 over the report period ended Jan. 13. The mining index also took a beating, falling 40.29 points, or 7.9%, to close at 470.21. The combined value of the Alberta Stock Exchange nose-dived 90.88 points, or 4.1%, to close at 2112.74.

This week’s market winner was Rupert Resources. The company saw its issues climb 45 cents to $3.15. The Vancouver junior is riding high following good news concerning the Crown-1 mine in South Africa. Initial results taken from drill core samples at the Hypabyssal kimberlite yielded 43 macrodiamonds out of 197 stones. One hole intersected 221 metres of Hypabyssal kimberlite and bottomed at 905 metres, still within the kimberlite body. The bottom of the hole is 560 metres beneath the deepest mined level. Two other drills are also spinning on the property.

Peruvian Gold fell 19 cents to close at 83 cents. As a result of encouraging drill results last year, the company is gearing up for a 10-hole drill program on its 100% owned Lara copper porphyry prospect in Peru. At least four holes will test the main zone for lateral and vertical continuity of copper mineralization. A total of three exploration holes will test ground a few kilometres east of the old Mina Socos workings. The Lara porphyry, as outlined by mapping and geophysics, covers and area of about a 6 sq. km.

Mountain Province Mining and its joint-venture partners, Camphor Ventures and Monopros, have initiated a winter exploration program on the AK/CJ claims in the Northwest Territories. The newly discovered Tesla, Tuzo and Hearne pipes will be subjected to a combination of diamond and reverse circulation drilling. Monopros, the operator, also intends to further investigate possible extensions of the 5034 pipe. Exploration drilling of another five targets in the area is scheduled to commence in late February or early March The AK/CJ claims are held 90% by Mountain Province and 10% by Camphor Ventures. Monopros has the right to earn up to a 60% interest in the properties. Mountain Province’s issues closed down 15 cents, to $4.50, whereas Camphor Ventures closed at $1.35, down 39 cents from last week.

Fjordland Minerals lost 11 cents, to close at 61 cents. During 1997, the company identified 24 prospective kimberlite sites on its exploration licences in southwestern Greenland. The targets were outlined using airborne geophysics and indicator mineral analysis. Further sampling and ground geophysical surveys are slated for the upcoming exploration campaign.

Golden Hemlock Exploration received additional results from its San Jose de Gracia project in Sinaloa state, Mexico. Hole 63, in the Palo Chino zone, returned 27.8 metres grading 2.23 grams gold per tonne and 15.5 metres grading 3.07 grams. The company is budgeting for a reverse circulation program this year. Core recovery from diamond drill holes sunk last year were “less than desirable.” Golden Hemlock’s issues dropped 4 cents to 18 cents.

Late last year, Greystar Resources drilled six stepout holes along the northwestern portion of the deposit known as La Alta, on its Angostura gold project in Colombia. Results revealed that all but one of the holes intersected gold. Drilling recovered values as high as 23.61 grams over 8 meters. Greystar believes that continued drilling could increase current reserves by 10%. At last report, resources were pegged at 34 million tonnes grading 1.65 grams gold, equivalent to 1.8 million contained ounces. Greystar issues lost 1 cents, and closed at 80 cents.