War jitters weaken junior exchange

Vancouver — Canada’s junior exchange drifted lower during the report period ended April 8, as investors elected to lighten their positions ahead of further geopolitical and economic developments. The S&P-TSX Venture Exchange composite index lost 9.93 points, or 0.94% of its value, to close at 1,041.68.

Spider Resources continued to trade heavily, ending the week up 3 to 15 with more than 22.4 million shares traded. The junior and its joint-venture partner, over-the-counter-listed KWG Resources, are in the midst of a 1,000-metre program of diamond drilling on their Spider 3 base metal prospect in the James Bay Lowlands of northern Ontario. Initial assays include 1.43% copper over 8.9 metres and 1.79% zinc over 4.7 metres.

Diagem International Resource closed flat at 25, with 1.5 million shares traded. The company holds a 38% interest in KWG Resources.

Investors readily traded shares in Pan Asia Mining, as the junior resumed trading after being issued a cease-trading order in January over disclosure issues. In March, the British Columbia Securities Commission issued a partial revocation order, which allows shareholders (with the exception of insiders and individuals with a “special relationship” with the company) to trade stock freely. The commission required Pan Asia to retain SRK Consulting to visit the 701 Changma diamond mine property and complete a technical report on or before May 30. Shares in Pan Asia ended the week down a penny to 11 on a volume of 3.1 million.

Madison Enterprises remained flat at 20 with 2 million shares traded. The company recently kicked off its 2003 exploration program on the Lewis property in Nevada’s Lander Cty. This phase of exploration will include structural geologic mapping, ground magnetics and induced-polarization surveying. A 10,000-ft. program of reverse-circulation and core drilling will follow.

Ontzinc closed the week at 17, up 8, with 1.68 million shares traded. The company raised $695,000 through a private placement of 6.9 million units. The funds will be used to advance the underground Balmat zinc mine in northern New York. Current diluted recoverable reserves for the Balmat No. 4 shaft, based on a mining rate of 2,000 tons per day, are estimated at nearly 2 million tons grading 11.9 % zinc. Additional underground resources near the mine workings include more than 3 million tons grading 12.9% zinc.

Apac Minerals failed to get a boost on news that exploration would start on the Nibao gold project in southern China. The company’s issue lost 14 and closed at 56 on 1.5 million shares. Apac is targeting the 8-by-1-km-long Erlongqiangbao anticline for “Carlin-style” gold mineralization. A mapping and sampling program will begin shortly, followed by a 2,500-metre drill program.

Gallery Resources lost a penny and closed at 10 with 1.3 million shares traded. Drilling at the Black Bart Katie property, in the Botwood Basin of central Newfoundland, has intersected epithermal veining. Assay results are pending.

IMA Explorations lost 3 and finished the week at 92 with 1.2 million shares traded. Toronto-listed Barrick Gold recently agreed to extend the selection notice period in an option agreement over the Potrerillos or the Rio de las Taguas property to the end of 2003.