STOCK MARKETS — Copper surge fails to ignite western

A surge in major markets in central Canada failed to spill over into western markets during the report period ended May 17.

The Vancouver Stock Exchange composite index recorded a 16.51-point drop to 1,028.40, while the resource index finished down 16.75 points at 1,645.03. Gold managed to finish the week little-changed at US$379.60 per oz. Arlo Resources ignored the downtrend, surging 64 cents to close at $1.64. The company acquired options on five properties in Panama and one in Mongolia. In concert with the property options, Arlo has arranged a brokered private placement of 8 million units at 80 cents each.

NASDAQ-listed MK Gold, which owns the Mongolian property, will buy 5 million of the units, while Min America, owner of three of the Panamanian properties, will buy 1.2 million.

The recent surge in copper prices prompted investors to pile into Goldnev Resources, which jumped 57 cents to a new high of 90 cents.

Goldnev owns a half interest in the Goldstream underground copper-zinc mine near Revelstoke, B.C., where recent head grades of 4.46% copper are somewhat above projections. Recoveries are averaging 92.8%.

Toronto-listed Bethlehem Resources, owner of the remaining half interest in Goldstream, added a more modest 16 cents to close at 61 cents. Spider Resources took top trading spot on the Alberta Stock Exchange, with more than 7.9 million shares changing hands to boost the issue 20 cents to 39 cents.

Ashton Mining of Canada (TSE) announced the discovery of diamond-bearing kimberlite on the Spider No. 1 joint venture with KWG Resources (ME) in northern Ontario.

KWG added $1.04 to close at $3.35, while Ashton added 21 cents to finish at $2.20.

The intersection of a kimberlite pipe on the ATW block in the Lac de Gras region of the Northwest Territories helped partners Almaden Resources, Williams Creek Explorations and Alberta-listed Troymin Resources. Almaden added 35 cents to finish at $3.75, Williams Creek gained 47 cents to close at

$1.37 and Troymin jumped 14 cents to 58 cents.

Kennecott, which is earning a 65% interest in the property, has split the drill core and sent it out for diamond analysis.

Although details of its gold-silver-diamond property interest in southeastern British Columbia remain scanty, Golden Unicorn Mining continued to spin on volume, with more than 2.2 million shares traded.

The company closed down 10 cents at 65 cents and the short position jumped 145,230

shares over the week, to sit at just over 300,000 shares.

Kalahari Resources, meanwhile, added 23 cents to close at $1.29. Evaluation of the company’s 31 properties within the Abitibi Greenstone belt is continuing, with much of the work concentrated on the Murdoch Creek Fault property near Kirkland Lake, Ont. The property is adjacent to Sudbury Contact’s Victoria Creek gold discovery.

A resource estimate for the Guadalupe property in Mexico did not help owner Northern Crown Resources.

The issue closed down 37 cents at $2.05 following release of a resource estimate

of 5.2 million tons grading 0.045 oz. gold.

The zone remains open and Northern Crown plans further drilling in the near future.

Orcana Resources added 24 cents after announcing a joint-venture agreement with

Outokumpu on the San Carlos property in Mexico.

Outokumpu can earn an initial 55% interest, and then up to 65%, by funding a prefeasibility study and making certain payments to Orcana.

San Carlos hosts a blanket-shaped, oxidized, copper deposit estimated to measure at least 100 ft. wide, 250 ft. long and more than 100 ft. thick. The grade is reported as being more than 1% copper, based on underground sampling and preliminary drill results.

Despite plans to buy back its own shares, Quito Mining fared poorly over the week, slipping 55 cents to close at $3.40. The company hopes to develop a graphite

property near Lumby, B.C.