The Vancouver Stock Exchange composite index plunged through the 400 level during the report period Aug. 26-Sept. 1 to close at 388.86, down 41.55 points, or 9.7%. The mining index followed suite, shedding 33.9 points, or 11.3% of its value, to finish at 266.49. The combined value of the Alberta Stock Exchange was off 151.37 points, or 8.2%, at 1,702.99.
One of the most active traders on the VSE continues to be Winspear Resources, which gave up 18 cents to close at $1. The company is undertaking delineation drilling on the NW Snap Lake kimberlite dyke at its 68%-owned Camsell Lake property in the Northwest Territories as part of a scoping study to determine the potential economics.
Francisco Gold was off $1.20 at $8. The company released details of an updated scoping study by Denver-based engineering consultant Behre Dolbear & Co. on the El Sauzal gold project in Mexico’s Chihuahua state. A proposed open-pit, 10,000-tonne-per-day conventional milling operation would produce an yearly average of 300,000 oz. gold over a mine life of seven years at an average operating cash cost of US$96 per oz.
Oliver Gold closed at 9 cents, down 4 cents, after the company decided against selling its interest in the Segala gold project in Mali to Nevsun Resources. The parties were unable to reach a consensus to extend the closing and, as a result, the agreement was terminated.
American Copper (formerly Twin Star Minerals) has proposed a takeover of all the outstanding shares of Alberta-listed Oro Nevada Resources for a purchase price equivalent to 30 cents per share, payable on the basis one share of American Copper for every 10 shares of Oro Nevada. The latter has property holdings in the state of Nevada, while the former also has holdings in Nevada, as well as Alaska. American Copper remained unchanged at $3, while Oro Nevada slipped 2 cents to 15 cents.
Mar-West Resources closed down 27 cents at $1.25. Under a proposed merger with Toronto-listed Glamis Gold, shareholders of Mar-West are entitled to receive one share of Glamis, or 0.8 of a Glamis share plus 96 cents, for every two shares held. Glamis finished the period at $3.20, down 40 cents. While Glamis is sliding in sync with Mar-West, a 1-for-2 share takeover equates to $1.60 for Mar-West.
Gerle Gold was off 3 cents at 25 cents. The company has arranged a private placement of up to 2 million units at 25 cents to raise up to $500,000.
International CanAlaska Resources closed at 10 cents, down 4 cents. CanAlaska and Holmer Gold Mines are not proceeding with a previously announced merger plan.
Brier Resources has started a reconnaissance mapping and sampling program on its 90%-owned Ord Mountain copper-molybdenum project in southern California. The issue slipped to 6 cents for a 2 cents loss.