STOCK MARKETS — Vancouver juniors suffer market malaise

Western markets continued to notch down after last week’s brief pause. The Vancouver Stock Exchange composite index dipped 16.3 points to 930.85 while the resource index closed the week off 26.13 points at 1,555.48.

The Exchange reports that trading activity fell sharply in the second quarter of this year, with volume down 23% at 1.2 billion shares. However, that trading level is considered normal, given that trading activity in the first quarter was the highest ever recorded at 1.6 billion.

Market malaise has not been kind to San Fernando Mining, which lost $1.25 to close at $4.25.

David Duval, vice-president of corporate development, is not particularly concerned about the share price, which he blamed on the weak market and a lack of news from the company’s La Fortuna gold project in Mexico. Duval expects to release additional assay results from the ongoing stepout and infill drilling program within the next few weeks.

Assay results from 27 mineralized holes released in late April from La Fortuna averaged 2.82 grams gold, 38.5 grams silver and 0.29% copper over an average width of 37.2 metres.

Crystallex Resources is staging a strong rebound from its recent low of $3.95, jumping 70 cents this week to $4.80. The company recently arranged a loan to complete the construction of a mill at its Albino property in Venezuela.

Shareholders of Eurus Resource, Crystallex’s former partner at Albino, were not quite as fortunate. Their shares remained unchanged at 30 cents. Eurus was forced to exchange its interest in Albino for 750,000 units of Crystallex and certain net smelter returns after the company experienced difficulties meeting a US$1.6-million payment on the property.

Goldnev Resources continued to lose ground, finishing down 45 cents at $1, a long drop from its trading high of $2.43 reached earlier this year. The company is restructuring its previously announced business arrangement with Prime Equities International and Silverstone Resources.

The former lost 50 cents to close at $2.05 while the latter finished down 20 cents at 70 cents.

Instead of completing a brokered private placement, Goldnev will fund the purchase of Silverstone units using cash flow from its 50%-owned Goldstream copper-zinc mine near Revelstoke, B.C.

Goldnev is also acquiring Prime’s holdings in Silverstone in return for treasury shares. Silverstone, in turn, plans to use the proceeds of its unit placement with Goldnev to fund exploration on the Esperanza concession in Panama. Silverstone can earn a half interest in the property from Adrian Resources.

Adrian, which is exploring porphyry copper-gold projects in Panama, followed the general market down, with a 45 cents drop to $3.75.

High-grade gold assays from the Iron Colt claims near Rossland, B.C., failed to ignite joint-venture partners Pacific Vangold Mines and International Silver Ridge Resources for any length of time. Muck and face samples from preliminary underground development returned consistent multi-ounce gold values.

Silver Ridge traded as high as $1.01 on the news before closing unchanged at 75 cents. Vangold came off its trading halt at $1.45 but gave up most of the gain to finish up a dime at $1.15.

St. Philips Resources edged back 39 cents to close at $2.40 after announcing that the due diligence review deadline for the take-over by Vengold has been extended one month to Aug. 15.

St. Philips holds a 40% interest in the South Kemess copper-gold project in British Columbia.

Vengold is offering one share and half a warrant for each two and half shares of St. Philips. Vengold, which was trading at more than $10 per share at the time of the offer, slipped 75 cents over our report period to close at $8.25. El Condor Resources, 60% owner of South Kemess and not part of the takeover, gained 58 cents to close at $5.38.