Western markets remained flat over the Oct. 14-20 trading period. The Vancouver Stock Exchange composite index remained virtually unchanged at 384.62, whereas the mining index dropped 3.12 points, or 1.1%, to 282.44. The combined value of the Alberta Stock Exchange lost 13.17 points, or 0.8%, to close at 1,705.69.
Lukas Lundin-led Argentina Gold scored big, rising as high as $2.35 on heavy trading before falling back to $1.91 for a gain of 96 cents. News of an impressive intercept at the Amable target on the Veladero project was quickly followed by a report that the company had arranged a $5-million private placement with New York-listed Newmont Mining. The financing consists of just over 2.5 million shares at $1.96 each. Argentina Gold has a 60% interest in Veladero; Toronto-listed Barrick Gold holds the remainder.
Another Lundin company, Atacama Minerals, was up 11 cents at 43 cents. The company is developing an iodine and sodium sulphate deposit in Chile’s Atacama Desert.
TNR Resources finished at 27 cents for a gain 12 cents. The company holds more than 650,000 acres in 15 projects in Argentina, including three properties within 35 km of Argentina Gold’s discovery area.
Winspear Resources closed up 35 cents to $1.76. The company released a further update of its 67.8%-owned Camsell Lake diamond property in the Northwest Territories. The company says the final five holes of a fall drilling program may have significantly expanded the potential tonnage of the NW Snap Lake dyke system. Microdiamond results from recent drilling are expected by year-end, and delineation drilling is planned for early 1999. Toronto-listed Aber Resources holds the remaining interest in Camsell Lake.
Meanwhile, Kennecott Canada has discovered a third kimberlite body on the Legend property in northeastern Alberta (the last discovery was made while drill-testing the Dragon target). Kennecott is earning a 60% interest in the property from 70-30 owners Montello Resources, which remained unchanged at 43 cents, and Redwood Resources, which was off 10 cents at 60 cents. Both are listed on the Alberta Stock Exchange
Lucero Resource tacked on 16 cents to close at 39 cents. The junior agreed to acquire a half-interest from a private Canadian company in two properties in the Antofagasta region of northern Chile. The properties are regarded as having the potential for porphyry copper-type deposits. Lucero is required to spend US$3 million on exploration, pay a total of US$1.1 million in cash and issue 1 million shares over a 2-year period.
Brandon Gold, which has been focused on exploring polymetallic projects in Sweden, was up 16 cents at 35 cents.