Western markets continue upward trend

Western markets continued to trend upwards over the report period ended April 23. The Vancouver Stock Exchange composite index rose 26.22 points to 1,190.59, while the resource index tacked on 57.96 points to close at 2,037.39.

Valerie Gold Resources closed up $1.80 at $6.60. The company recently started a 2,000-metre drill program on the Capire massive sulphide prospect at the Mamatla property in Mexico. Based on limited sampling of old mine workings, the Mexican government reported a potential resource of 5.2 million tonnes grading 17.3% zinc and 5.92% lead, plus 0.4 gram gold and 49.3 grams silver per tonne.

War Eagle Mining released results from a high-grade hole at its La Fortuna property in Mexico, including a 100-ft. interval grading 33.58 oz. silver and 0.099 oz. gold per ton. The issue added 10 cents to close at $3. War Eagle returned other high-grade, silver-gold intersections on the property in the past, prompting a major U.S. mining company to option the property last year.

The major subsequently dropped the property after its drilling failed to confirm previous work. War Eagle believes it has a better handle on the property’s geology and is planning additional drilling.

High-flying Timbuktu Gold was grounded by the Alberta Stock Exchange pending clarification of the company’s affairs. The issue reached a high of $30 on the release of what appeared to be impressive preliminary reverse-circulation drill results from its Sitakilli mining concessions in Mali, West Africa.

Timbuktu’s chairman, Oliver Reese, has come under fire from the Alberta exchange after it was revealed he had not disclosed his previous business activities in Mali and run-ins with the U.S. Securities and Exchange Commissions. Responding to the growing concern, Timbuktu said it will obtain an independent audit of its drill results from a recognized mining consultant firm. Timbuktu closed at $24.90, up $15.45, before being halted April 19.

The discovery of a second kimberlite on the Afridi Lake diamond property in the Lac de Gras area of the Northwest Territories met with a gain of $1.14 for Cypango Ventures, which finished at $3.40. The 5009B pipe is 400 metres northwest of pipe 5009A, and both pipes comprise part of a group of four closely spaced targets, which were defined by geophysics and indicator minerals. Cypango is earning a 51% interest from Intertech Minerals, which is increasing its interest to 90%. Intertech was up 9 cents at $1.75.

With exploration programs proceeding at Saskatchewan’s Fort a la Corne diamond project and the Clearwater nickel project, Kensington Resources finished up 86 cents at $2.45. In preparation for a large-diameter drill program at Fort a la Corne, Kensington completed eight of a planned 9-hole, small-diameter program.

GMD Resource closed up $1.07 at $4.42 on news that the 12th hole of a 10,000-ft. drill program at the Discovery gold mine property in the Northwest Territories intersected 200 ft. of sulphide mineralization. The intersection cut four zones with visible gold.

Drilling at the War Baby property in Flin Flon, Man., has reached a depth of 1,560 metres. Consolidated Callinan Flin Flon Mines believes the property straddles the down-plunge extension of Hudson Bay’s Callinan mine. The projected depth of the target is 1,700 metres. Consolidated Callinan gained 50 cents to finish at $3.25.

Further work by Essex Resource on the Miguela concession in Bolivia continues to identify gold targets. Drilling on the A zone is scheduled for early May.

Essex tacked on 32 cents to close at $4.30.

White Hawk Ventures is hammering out an agreement with Westmin Resources to acquire the Linda property, which comprises certain mineral claims in the Alberni mining region of British Columbia. The issue rose 38 cents to close at $1.