STOCK MARKETS — Western markets waver under gold and copper blues — Cross Lake, Canabrava Diamonds drop following release of results

Weak gold and copper markets continue to take their toll on junior mining and exploration stocks. The Vancouver Stock Exchange composite index shed 19.31 points, or 3.1%, during the report period ended Feb. 24, to close at an even 613, and the mining index lost 18.92 points, or 3.6%, to finish at 500.3. The combined value of the Alberta Stock Exchange was off 41.05 points, or 1.9%, closing at 2121.08.

With 4.3 million shares trading hands, Cross Lake Minerals dropped a quarter to finish at $1.35. The company released zinc-copper-silver assay results from four holes drilled on its wholly-owned Sheraton-Timmins property in northeastern Ontario. Hole 97-40 returned the best values, averaging 1.83% zinc, 0.11% lead and 34.4 grams silver per tonne over 45.6 metres, including a 0.5-metre high-grade interval of 1.9% copper, 1.44 grams gold and 1,095 grams silver.

Kalahari Resources tacked on 9cents to reach $1.14. Under the direction of Kevin McAndrews, a former exploration director with Minera Kennecott, Kalahari is aggressively acquiring ground in the vicinity of the San Nicolas massive sulphide find of Western Copper Holdings and Teck, in Mexico’s Zacatecas state. To date, Kalahari has acquired, through staking and joint-venture agreements, a land position totalling 3.4 million acres.

Canabrava Diamonds was off 40cents, closing at $1.50. In a year-end update of its diamond exploration activities, the company reported that at the Canabrava project in Brazil, 130 kimberlite/lamproite bodies were found by drill testing 207 priority targets. While both microdiamonds and macros were recovered from a number of the discovered pipes, no significant concentrations have been reported to date. Field work has been suspended until a review of all the results is completed. At the Whitefish Lake project in Ontario, positive indicator mineral results are being followed up with a planned $2-million exploration program in 1998. In addition, a $1.2-million summer exploration program has been approved for the Kap project, a 50-50 joint venture with Paramount Ventures and Finance.

Anzex Resources was listed and called for trading on the VSE during the report period. The issue traded as low as $1.41 before closing at $2.50. A public offering of 1.87 million units was completed at a price of 75cents per unit. The company holds interests in the Longwood platinum property in New Zealand and the Mosquito Hill gold project in Australia. Nickel-platinum expert Anthony Naldrett has been appointed to the board of directors.

Argentina Gold slipped 9cents to close at 66cents. The company held a conference call last week to provide an update on the US$4.8-million exploration drilling program in progress on its 60%-held Veladero gold-silver project in northwestern Argentina. Toronto-listed Barrick Gold holds the remaining 40%.

International Taurus Resources rose 14cents to 62cents, after disclosing it is negotiating a transaction involving a potential change in control of the company. Taurus has been negotiating the sale of a 6-million-share control block of its company held by Hera Resources.

Trading in Hunter-Dickenson-led Great Basin Gold resumed after it announced drill results from its 75%-held Ivanhoe gold property in Nevada. The company previously reported that it had hit quartz-vein-hosted gold and silver mineralization within intervals from 2 to 20 ft. in three of six vertical holes. The shares rose 40cents to $2.35 following that news. Selected assay results reported at presstime include: 33.2 ft. grading 0.13 oz. gold and 3.2 oz. silver per ton; 10.6 ft. of 4.9 oz. gold and 47.8 grams silver; and 12.6 ft. of 1.6 oz. gold and 39 oz. silver. The company calls the results “highly encouraging.”