STOCK MARKETS — Western markets stage a modest rebound

Western markets managed to halt their slide and rebound slightly over the report period ended July 5, at a time when the gold price held steadily at the US$387-per-oz. level.

The Vancouver Stock Exchange resource index added just over eight points to close at 1,581.61 while the composite index edged up 0.75 points to 947.15. An option agreement with Monopros gave the Slave Diamond Syndicate a boost. Gerle Gold added 8 cents at 78 cents; Norcal Resources gained 8 cents at 41 cents; Tenajon Resources jumped 19 cents to 72 cents; and Toronto-listed Westley Technologies remained unchanged at 30 cents. All the partners have a 20% interest in the syndicate, except Gerle which holds 40%. The agreement gives Monopros the right to earn a 60% stake in the Territorial lands held by the group by spending $7 million within three years. There is still no word on a rumored earn-in agreement with a major company on the Yamba Lake, N.W.T., property owned by Mill City Gold and Alberta-listed Tanqueray Resources.

Mill City traded more than 3.4 million shares before closing down a dime at $2.50 while Tanqueray added a nickel at $5.

Formation Capital did well, adding 35 cents to close at $2.80. Drilling is continuing with a second rig at its Black Pine copper-gold-cobalt prospect in Idaho and the company recently reached an agreement to acquire the nearby Sunshine mine property. Previous drilling there outlined a reserve of 400,000 tons grading 1.1% cobalt, 0.26% copper and 0.025 oz. gold per ton. Alberta-listed Gold City Resources came off a 5-week trading halt strongly, trading as high as 42 cents before closing up 14 cents at 29 cents. The issue was halted at the request of the company while a change of control was undertaken.

Subsequent to the halt, drilling on Gold City’s property in Midway, B.C., returned an 11-ft. intersection grading 1.52 oz. gold.

Sway Resources and Phoenix Resources have completed a 51% earn-in on the project and expect to release additional drill results shortly. Sway lost a nickel to close at 55 cents.

Gold City is considering combining with McKinney Mines, a private company with common management. McKinney owns the Camp McKinney property east of Osoyoos, B.C. Past production from the former underground producer totals 87,200 oz. gold from 121,800 tons of ore, most of which was mined in the late 1800s and early 1900s.

Royal Bay Gold finished down 6 cents at 36 cents after its option to acquire a one-third interest in the Avino silver mine in Mexico expired. The company is now negotiating an exploration option on the eastern portion of the property with owners Avino Mines & Resources and the Ysita family of Mexico.

Drill results from the Mastodon property near Revelstoke, B.C., were not encouraging, according to owner Banff Resources which closed down 13 cents at 52 cents. The company plans to evaluate the drilling data and decide on the future of the property shortly.

Crystallex Resources bounced off a new low of $3.95 to close down a dime at $4.10.

The company has arranged a US$3.5-million convertible debenture to fund further work and property payments on its Albino gold property in the Kilometre 88 region of Venezuela.

The company is constructing a 400-ton-per-day mill at the property to process gold tailings and surficial deposits.

Valerie Gold Resources finished up 19 cents at $1.49. The company is preparing to begin drilling at its Cone Hill property near Taseko Mines’ Fish Lake deposit southwest of Williams Lake, B.C.

Valerie is also awaiting word from Mexican authorities regarding a company proposal to acquire rights to a large gold-silver project.

Drill results from its TOMI concession in Venezuela’s Bolivar state did not help Bolivar Goldfields, which traded down a dime at $4.

Results ranged from less than 0.03 oz. gold over widths greater than 10 ft., up to a high of 0.5 oz. gold over 50 ft. Further drilling and trenching are expected to get under way in August.