STOCK MARKETS — Western markets sluggish as composite index

‘Tis the season to re-price employee stock options. This, at least, is what a flood of companies are doing as western markets continue to slide.

The Vancouver Stock Exchange composite index dipped just over five points to finish the report period ended Dec. 20 at 722.53. The resource index fared better, closing up almost 15 points at 1,176.75 amid a rising gold price. Pacific Falcon Resources took a hit, dropping 49 cents to close at $2.11. Adam Smith, corporate secretary, blamed the drop on technical market factors and said no corporate changes have taken place. The company expects to begin drilling on the Guinaoang porphyry copper-gold project after Christmas in an effort to expand the current resource of 517 million tons grading 0.37% copper and 0.01 oz. gold. Pacific Falcon can acquire up to a 70% interest in the property.

Slow markets are having little effect on Summo Minerals, which added 26 cents to close at a new high of $1.39. The company, which was listed in late-October at 60 cents, announced a doubling of the oxide copper resource at its Lisbon Valley property in Utah. The resource now stands at 38.4 million tons grading 0.48% copper, which does not include stepout drilling conducted this year. A recent 2.5-million-unit private placement priced at $1.20 each gives the company funds to initiate a feasibility study for an open-pit, copper-leaching operation at Lisbon Valley.

High-grade gold values from development work at its Evening Star project in Rossland, B.C., were not much help to Pacific Vangold Resources, which lost a dime at $1.10. Muck samples from a 50-ft.-long raise averaged 0.73 oz. gold per ton, and the company plans to begin test mining in the new year. Gold Giant Minerals added 4 cents to finish at 28 cents after touching a new low of 20 cents. The company has completed negotiations with Agate Bay Resources to earn a 75% interest in two separate base metal properties south of Prague in the Czech Republic. Agate Bay added a penny to close at 19 cents. Assay results from drilling on the Bralorne project in southwestern British Columbia seemed to have little effect on joint-venture partners Bralorne-Pioneer Mines and Avino Mines and Resources. Results from the 13 holes drilled varied from 0.03 oz. gold over 2.5 ft. up to 0.33 oz. over 4.8 ft., leaving Bralorne-Pioneer unchanged at the 55 cents level and Avino off 13 cents at 65 cents.

Pacific Sentinel Gold finished down 13 cents at a new low of $1.77. The company is continuing with mine-planning efforts for its Casino copper-gold project in south-central Yukon. The initial open-pit design contains an oxide gold resource of 40.2 million tons grading 0.018 oz. gold, a supergene resource containing 64.5 million tons grading 0.013 oz. gold and 0.43% copper, plus a hypogene resource of 26.9 million tons grading 0.012 oz. gold and 0.31% copper, with an overall stripping ratio of 0.9-to-1. The company plans to begin a detailed prefeasibility study on the completion of a metallurgical program.

Plans to enter the wholesale diamond trading business will help Sentinel Resources market the diamonds produced from its alluvial interests in South Africa. The company also plans to purchase and market rough diamonds from sources throughout Africa. Sentinel added 15 cents to close at $1. International Wayside Gold Mines slipped 17 cents to finish at 54 cents. The company recently completed an agreement to buy the other half interest in the Wayside property in Gold Bridge, B.C. A planned drilling program at the project will test the extension of gold-bearing veins discovered by Chevron Minerals.

Partners in the Camsell Lake diamond project in the Northwest Territories took a hit after investors digested results from hole CL 25-1 (six macros and 112 micros from 116 kg). Consolidated Newgate Resources, which holds a 10% interest, dropped 10 cents to 22 cents, while 30% owner Winspear Resources sunk 31 cents to $1.15 and 20% owner Amarado Resources lost 17 cents at 60 cents. Toronto-listed Aber Resources holds the remaining 40% interest.