STOCK MARKETS — Gold discovery news fuels activity on

The gold potential of Venezuela and the gold and diamond potential of the Northwest Territories continued to drive investor interest on western markets during the period ended noon today, Feb. 17.

But the flurry of trading fuelling the Venezuela gold rush was tempered by the realization that acquiring properties in this South American country can be complicated by uncertainties relating to the authority to grant concessions. Some juniors are also finding that the claims to ownership of concessions by Venezuelan interests may not hold up under rigorous due diligence legal reviews.

Sober second thoughts led to some profit-taking, as evidenced by the resource index, which lost 17.22 points to finish at 767.9 during our report period. The composite index lost 10.6 points over the week at 720.37. TVI Copper was the most active issue on the Alberta Stock Exchange, holding at the 29 cents level. The company recently completed a $2-million public financing and is planning more exploration work on its Anyox project in northwestern British Columbia. The company’s first-phase program refined two exploration targets in known zones of massive sulphide mineralization, and defined two new target zones. The property includes the past-producing Hidden Creek mine, which is reported to have turned out 24 million tons of 1.57% copper.

Rumors of a new gold discovery in the Northwest Territories reminded investors that this vast unexplored land has potential for world-class gold and base metal discoveries. Homestake Mining isn’t willing to say much about its new Goose Lake gold discovery in the Territories, not far from its George Lake deposit which has a preliminary resource of more than three million tons grading 0.4 oz. gold per ton. Analyst Dave James of Richardson Greenshields says this new discovery is rumored to have a resource that is potentially large and open, but defined by a limited number of holes in a folded banded iron formation.

Homestake will only say the Goose Lake find is “interesting,” but that isn’t stopping juniors with ground in the region from hopping with excitement. Bob Hunter’s Lumina Investment has ground nearby, and speculators have already bid up the issue’s share price by 45 cents to $1.85. Bert Applegath’s Kalahari Resources also has ground in the region, and that issue posted a modest 6 cents increase to $1.29.

Trading interest remained strong in diamond exploration companies active in the Northwest Territories. But Cyclone Capital took a big hit, losing $1.55 to settle at $2.45 after announcing results from microprobing of indicator minerals from samples collected on Somerset Island claims.

An economic grade pipe has not yet been indicated by these tests. That probably comes as no surprise to groups active on the Arctic islands in the 1970s. A group of juniors active in the area has planned work programs to further test the region’s potential. This region is known to host kimberlites, and the juniors hope to find evidence that some pipes in the cluster are economic.

Skyline Gold lost 50 cents to settle at $1.89 after announcing details of its debt restructuring. The company is attempting to position itself to further explore its Johnny Mountain gold mine property in northwest British Columbia. The first goal is to prove up at least 100,000 tons of high-grade reserves and bring the mine back into production.

Venezuelan Goldfields was off $1 at $10.12 after announcing “concerns” about ownership of the Oro Uno gold concession near Placer Dome’s Las Cristinas discovery. The company was proposing to enter into a joint venture with International Kengate Ventures to earn an interest in this concession, but it now says Kengate’s agreement with a Venezuelan company holding title to the concession may be in jeopardy.

Several other juniors active in Venezuela’s Kilometre 88 area lost ground, including Carson Gold, which fell 20 cents at $3.70. Eurus Resource and partner Crystallex International are going full steam ahead on the prospective Albino concession in Venezuela. Eurus gained 40 cents to settle at $2.48, while Crystallex was ahead 52 cents and trading at the $2.45 level.