STOCK MARKET — Mining index follows suit as western markets slacken — Interest sustained in Eastern European gold plays and Territorial diamonds

Western markets remained flat over the report period ended Sept. 9. The Vancouver Stock Exchange composite index was off less than a point, closing at 841.54, while the mining index slipped 9.38 points, or 1.2%, to finish at 748.18.

The combined value of the Alberta Stock Exchange closed at 2,433.19, up just 4.51 points.

Steppe Gold Resources reached as high as 60cents before pulling back to 49cents for a gain of 8cents. The company holds a large land position in Kazakstan, in addition to a 51% interest in the advanced-staged Mizek gold project. A recently completed feasibility study on Mizek showed the economic viability of a proposed $23.3-million open-pit, heap-leach mine that would produce 302,000 oz. gold over a 5-year life at an average cash cost of US$137 per oz. Recent deep drilling confirmed previous Soviet data on a sulphide system beneath the oxide zones. Results included 77 metres averaging 2.1 grams

gold per tonne and 1.1% copper, plus 82.7 metres averaging 2.7 grams gold and 0.7% copper. Steppe announced it has closed a $1-million financing.

Shareholders of Alberta-listed Glenmore Highlands will have the opportunity to vote this month on a proposed merger of the company’s wholly owned subsidiary, 444965 B.C., which holds a 40% interest in the AK-CJ diamond properties in the Northwest Territories. (The remainder is held by Mountain Province Mining.) The amalgamated company will retain the name Mountain Province Mining and hold a 90% interest in the AK-CJ properties, subject to a 60% earn-in right held by Monopros. Glenmore will receive 17 million shares of the amalgamated company in exchange for all the shares of 444965 B.C. Mountain Province shareholders will receive one share of the amalgamated company on a 1-for-1 basis. Glenmore closed up a dime at $4.25, whereas Mountain Province shed 60cents to finish at $5.10.

Alberta-listed Blackstone Resources acquired an option to acquire a second gold-silver property in the Gauzaparis mineral district of Mexico’s Chihuahua state. Blackstone is exploring three properties in the Yukon and two in Nevada.

Blackstone was up 28cents at $1.28.

Drilling has resumed at Cross Lake Minerals’ wholly owned Sheraton-Timmins, east of Timmins, Ont. Up to 10 holes totalling 3,000 metres are planned to test five prospective areas for base and precious metal massive sulphide mineralization. Cross Lake edged up 3cents to close at 66cents.

Aquiline Resources closed down 10cents at 45cents. New York-listed Hecla Mining dropped an option to earn a 60% interest in Aquiline’s La Jojoba gold property, in Mexico’s Sonora state.

Alliance Pacific Gold was up 14cents at 72cents. The company has entered into an option to acquire a 25% indirect interest in the Golden Kolyma hardrock and placer gold project in the Magadan region of northeastern Russia. A $495,000 private placement has been arranged.

White Knight Resources has entered into an option agreement to earn a 51% interest from Quest U.S.A. Resources in the New Pass gold property in Nevada.

To do so, the junior must spend US$1.5 million on exploration over four years and pay US$325,000. Based on 178 drill holes, the resource is estimated at 3.1 million tons grading 0.055 oz. gold per ton. White Knight added 15cents to close at 85cents.

Rupert Resources climbed 59cents to $1.47 following the signing of an agreement to acquire up to a 75% interest in the former-producing Crown diamond mine in South Africa.

AMI Resources and partner Norcan Resources were both down after releasing results from a 9-hole program of diamond drilling that tested the Beposo gold-arsenic soil anomaly at the Adumasa project in Ghana, West Africa. AMI slipped 31cents to 78cents, whereas Norcan lost 6cents to close at 24cents.


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