STOCK MARKETS — Yukon projects fail to ignite western markets

Western markets entered October on a down note, as the Vancouver Stock Exchange resource index dropped 37.35 points over the report period ended Oct. 3, to close at 1,358.23. The composite index slipped 11.16 points to finish at 848.95.

Investor interest in a growing area play in the southern Yukon — centred around Cominco’s Kudz ze Kayah project and the Wolverine discovery on Atna Resources’ Foot property — took a breather over our report period. While the latest drill results confirmed the extension of the Wolverine zone, 50 metres west of the discovery section, Atna closed down $1.05 to $3.45. Toronto-listed Westmin Resources is earning a 60% interest.

Other companies with ground in the area include Demand Gold, Expatriate Resources and Pacific Bay Minerals. Demand closed down 23 cents at $1.07, Expatriate slipped 30 cents to $1.95 and Pacific Bay finished at 65 cents, for a loss of 11 cents.

Recent fluctuations in the share price of Mountain Province Mining remain unexplained. The company, which holds a half interest in the AK property in the Northwest Territories, edged down $1.25 to $6.50. Alberta-listed Glenmore Highlands, with a 40% interest, closed at $5, down 20 cents, while Camphor Ventures, holding a 10% interest, finished down 25 cents to $2.80.

Alberta-listed Bre-X Minerals continued its ascent on the release of seven additional drill holes on the Southeast zone of its 90%-owned Busang gold project in East Kalimantan, Indonesia. The company is drawing a lot of attention from mining analysts who like what they see. The issue closed up $1.38 at $18.63.

Carmelita Petroleum jumped 57 cents to $1.42, before trading was halted at the request of the company, pending an announcement. Carmelita is conducting an exploration program on its 50%-held, 8-claim block package in the Voisey Bay area of Labrador.

Limited trading in International Barytex Resources resulted in a 25 cents gain to close at $1.25. Assay results from drilling carried out on a new zinc discovery at the Mel property in southeastern Yukon included 5.1 metres grading 15.6% zinc for hole 5, and 5 metres of 9.9% zinc for hole 4. Hole 5 was drilled 70 metres downdip of hole 4. Reserves are estimated at 6.8 million tonnes grading 7.1% zinc, 2% lead and 54.7% barite.

Copperstone Resources slipped 3 cents, closing at $1.35. The company is preparing for fall and winter drilling on its Boleo copper-cobalt project in Baja California Sur, Mexico. Plans call for up to 20 drill holes. Copperstone is earning an 80% interest in the project from Island-Arc Resources, which closed at $1, down 8 cents.

First Western Minerals traded as high as $1 before finishing at 80 cents, for a loss of 5 cents. The company announced it is negotiating to acquire a property in southeastern Quebec, where grab samples returned values of up to 22% nickel and 0.1% cobalt, and where trenching yielded values averaging 8.22% nickel and 0.07% cobalt over 12 ft.

Plans to acquire the Pilar project, a 5,930-acre gold property in Mexico’s Sonora state, met with a 6 cents gain for Santa Catalina Mining, closing at 61 cents. Santa Catalina has signed a letter of intent to buy the property for option payments totalling US$1.7 million over three years. Small-scale, high-grade mining took place early in this century.

Diamond explorer Kensington Resources has signed a joint-venture agreement with Uranerz Exploration & Mining to earn a half interest in the Clearwater nickel project in northern Saskatchewan. Kensington must spend $1.5 million on exploration over three years. An airborne magnetic and electromagnetic survey is planned as part of a winter exploration program. Kensington closed up 4 cents at 85 cents.