STOCK MARKETS — Venezuelan Goldfields continues healthy

Western markets continued to gain ground during the week ended Jan. 26, with the primary focus still centred on the Kilometre 88 area of Venezuela.

The Vancouver Stock Exchange resource index posted an 8-point gain to 714.94, while the composite index jumped a healthy 14.68 points to close at 690.11.

Venezuelan Goldfields added to an already stellar performance with the announcement of a 1-million-share placement at $10. The issue touched a high of $11.38 before closing at $11 for a gain of $1.50 on the week, the equivalent of a $6.50 jump in the past month.

For the near term, Venezuelan Goldfields plans to use proceeds of the recent placement to acquire additional ground in the Kilometre 88 region where Placer Dome is rumored to have made a multimillion-ounce gold discovery at its Las Cristinas property.

Venezuelan Goldfields has already acquired or optioned a number of properties in the area surrounding Placer’s ground, including its 50-50 joint venture with Queenstake Resources on that company’s Bizkaitarra concession, a 60-40 agreement with Carson Gold and an exclusive option to form a joint venture on the Oro Uno concession with a Venezuelan mining company. Carson hit a high of $2.95 before finishing at $2.40, up 15 cents.

Eurus Resource also did well, adding 76 cents to close at $2.29. Eurus has an option to earn a 50% interest in the Albino concession from Crystallex Resources and plans to begin a drilling program in February to test a highgrade shear structure. Crystallex closed at $4.20.

A move to acquire a 50% interest in the 500-hectare Yuruan concession in the Kilometre 88 area from Consolidated Madison Holdings gave Rare Earth Resources a $1.08 boost to $1.95. Rare Earth also has a right of first refusal to purchase a 50% interest in two additional 500-hectare concessions from Consolidated Madison, which jumped 30 cents to close at $2.05. In concert with a private placement of 1.3 million units at 15 cents, Nucore Resources announced it is proceeding with negotiations to acquire a mineral property in the Guyana Shield in southeastern Venezuela. The issue gained 11 cents to close at 26 cents.

The announcement that Prime Equities-managed Solidor Resources is negotiating to acquire mineral claims in southeastern Venezuela gave the issue a 15 cents boost to 40 cents.

Adrian Resources, which recently started a drilling program on the Petaquilla copper property in Panama, added 12 cents to close at 84 cents. The company can earn a 40% interest in an 80% property interest held by Minnova and reports that the first hole of the program intersected copper mineralization. An agreement to acquire a 50% interest in nine claim blocks about 70 km southeast of the Point Lake diamond discovery in the Northwest Territories gave Nevsun Resources a healthy boost. The issue closed at $1.03, up 24 cents. New Canamin Resources edged up 12 cents to $1.20 as drilling continues on the Huckleberry porphyry copper property near Kemano, B.C. The company can earn a 100% interest in the property from Kennecott (subject to a 60% back-in) and is proceeding with feasibility work targeted at developing a 2,500-3,000-tonne-per-day open-pit copper mine.

Sutton Resources gave up some of its previous gains, losing 50 cents to close at $10.68. The price represents almost a doubling from the $6 level at the start of the year when BHP Minerals International announced it is proceeding with an agreement to earn a 52.2% interest in the Kabanga nickel property and 60% interest in the Kagera concession in northwestern Tanzania. With plans to resume exploration on its property holdings in the Iskut River area of northwestern British Columbia, Skyline Gold added 45 cents to close at a new high of $2.10.

Goldnev Resources and Bethlehem Resources, joint owners of the Goldstream underground copper-zinc mine near Revelstoke, B.C., both touched new highs during the period. Bethlehem traded as high as 65 cents, closing up 9 cents at 60 cents, while Goldnev closed up 15 cents at 60 cents. Although no results have been released for the full year, both companies reported healthy profits from the mine for the first nine months of the year.