STOCK MARKETS — Western markets stage mixed performance

Western markets put in a mixed performance over the report period ended March 26, with the Vancouver Stock Exchange composite index posting a 24.3-point gain to 1,080.55.

The resource index failed to follow the composite’s climb, however, and slipped almost six points to close at 1,862.90.

Shareholders of Bre-X Mineral had a wild ride after an article in a daily business paper suggested that more hard data and infill drilling would be required to substantiate estimates of a 30-million oz. resource at its Busang gold deposit in Indonesia. Assaying concerns were also raised, as Bre-X uses cyanide leach on whole core to determine grade rather than the more common technique of fire assaying half the core. Bre-X quelled the storm by reassuring shareholders that its results have been confirmed by fire-assay checks.

Bre-X dipped as low as $132 before mining analysts reconfirmed buy recommendations. The issue rebounded, however, and finished the week at $144, down $5.

Arizona Star Resource added 18 cents to finish at $1.21 after releasing results from a deep-drilling program at its 51%-owned Aldebaran property in Chile.

The company, along with 49% partner Bema Gold, is completing a feasibility study for an open-pit, heap-leach operation. Arizona Star reports that drilling at depth, below the known Cerro Casale deposit, indicates a large, higher-grade oxide deposit.

Low-grade gold values from additional deep drilling at its Passagem property in Brazil left Lysander Gold unchanged at $1.20. Hole MG-02A returned 2.35 metres grading 0.35 gram gold per tonne at a depth of 463.1 metres and a 3.56-metre intersection grading 0.21 gram gold at a depth of 473.4 metres. The hole was drilled to test the mine horizon 200 metres downdip from MG-01, which intersected 2.4 metres grading 19.05 grams gold.

Coral Gold was hit hard after Amax Gold announced it dropped its option on the Robertson property in Nevada. The issue sold off to a low of 90 cents before staging an impressive rebound to close up 1 cents at $1.66.

Plans to acquire certain claims in the Timmins area of northern Ontario helped TMT Resources jump $1.05 to $1.82. TMT plans to start a ground geophysical survey in an effort to define drill targets.

Alberta-listed Leader Mining International retains the right to back-in for a 51% interest in TMT’s claims and already controls more than 100,000 acres of ground in the area. Leader lost 38 cents over the period to close at $5.25.

Argosy Mining lost ground, slipping 43 cents to $2.11. The company is set to drill-test for extensions of the known Sturec deposit laterally and to depth at its Kremnica epithermal gold-silver property in the Slovak Republic. A bulk-tonnage target will test the adjacent Katarina vein system.

Plans to acquire ground in what the company describes as “the Bre-X area on the island of Kalimantan” helped Newcoast Silver Mines touch a high of $1.25 before the issue settled at 95 cents, a gain of 23 cents.

Adikann Goldfields reached 90 cents before settling at 72 cents, a gain of 12 cents, after announcing plans for a private placement of 400,000 units at 51 cents per unit. Proceeds from the issue will be used for ongoing exploration work on its concessions in Ghana, West Africa.

Favorable coverage in a U.S. financial paper helped Oliver Gold add 25 cents to hit a new high of $3.20.

El Callao Mining gained ground, jumping 25 cents to $1.32. The company is working to bring its Increible gold project in Venezuela’s Bolivar state into production. At last report, the property’s Victoria deposit contained a resource of 5.7 million tonnes grading 3.4 grams gold.

The battle for Sutton Resources continues, and management reported that James Sinclair is loosing support in his attempt to gain control of the company. Christopher Jennings has withdrawn as one of Sinclair’s nominees and shareholders, previously supportive of Sinclair’s lawsuit, have also backed down.

Sutton gained $1.12 to close at $17.50.