STOCK MARKETS — Resource stocks stagnant on western markets

Western markets put in a weak performance over the report period ended June 25.

The Vancouver Stock Exchange composite index dropped 20.6 points to 1,253.04, while the resource index reversed its slide, edging upwards 13.43 points to close at 2,266.84.

Canabrava Diamond, along with Toronto-listed joint-venture partner Teck, announced the discovery of two diamondiferous kimberlites at the Canabrava project in Brazil. A preliminary analysis of samples collected from various phases of the outcropping KX-277 revealed microdiamonds, including a count of more than 150 in a 20-litre sample of weathered kimberlite and clay. The discovery of the second kimberlite was made while drill-testing the high-priority magnetic target RX-181. The hole intersected the pipe at a depth of 25 metres and remained in kimberlite until it was terminated at 120 metres. Preliminary analysis on the first 200 litres of a 1,000-litre sample identified greater than 200 micros. The remaining portion of the sample will be processed for macros. A 1-litre sample is roughly equivalent to 1 kg.

Canabrava tacked on 70 cents to finish at $5.40.

A $1.3-million exploration program is budgeted by joint-venture partners Camnor Resources and Gold Giant Minerals for the Willoughby gold project near Stewart, B.C. The initial phase will include 4,300 metres of underground drilling. Camnor closed up 5 cents at 75 cents, while Gold Giant was up 1 cents at 39 cents.

Samex Mining closed down 35 cents at $3.75 on the release of assay results for holes 2 and 3 from the Santa Isabel project in southwestern Bolivia. The holes were drilled on the southwestern edge of a copper-gold porphyry target.

Hole 2 returned 54.7 metres grading 1.04% zinc and 21.9 grams silver per tonne, plus 138.5 metres grading 0.97% zinc and 15.8 grams silver. Hole 3 included a 78.6-metre interval grading 0.42% zinc and 9.4 grams silver.

Anomalous values of copper, lead and gold were recorded in both holes.

Plans to acquire a full interest in a British Columbian gold property helped Veto Resources add on 12 cents at 47 cents.

Northern Crown Mines released further results from drilling on the Noche Buena and Zapote zones at the Guadalupe project in Mexico’s Sinaloa state.

The Noche Buena was tested with nine holes during the 1996 program. Results for the final four holes included 36.6 metres of 1.04 grams gold and 36.9 grams silver (including 15.2 metres of 1.62 grams gold and 60.6 grams silver) in hole 96-10. A 22-hole stepout and infill program was recently completed on the Zapote North zone. Results of the first nine holes included 29 metres of 1.73 grams gold and 17.9 grams silver (including 13.7 metres of 3.25 grams gold and 28.3 grams silver) for hole 96-68. A 40-hole program is under way on the Guadalupe mine zone. Northern Crown closed up 5 cents at $1.10.

International Taurus Resources is expanding its alliance with New York-listed Cyprus Amax Minerals by entering into a joint venture with Cyprus’ Panamanian subsidiary. As operator, Taurus can earn a 50% interest in four Panamanian concessions totalling 79,000 hectares by spending a total of $2.5 million over four years. Taurus was up 15 cents at $1.90.

The market reacted unfavorably to Stellar Gold on the announcement that BHP Minerals had decided to concentrate its efforts solely on the Surigao property after deciding the resource potential on the Palawan property was not large enough to meet its requirement. Stellar closed down $1.05 at $3.30.

George Resource climbed 33 cents to $1.48 on assay results from the first drill hole on the WEN zone at the Au property near Merritt, B.C. A quartz vein, intersected from 204 to 225.5 ft., returned grades averaging 0.83 oz.

gold, 0.53 oz. silver and 0.98% copper over 12.5 ft.

A 3-hole drill program on Kernow Resources & Developments’ Joutel property in northern Quebec returned 3.35 metres grading 0.48 gram gold, 15.9 grams silver and 2.4% copper for hole 96-6. Follow-up hole 96-8 tested the mineralization 85 metres below hole 6 and cut 2.85 metres grading 0.27 gram gold, 55.9 grams silver and 6.03% copper. A stepout hole, 100 metres northwest of hole 6, failed to intersect any significant mineralization.

Kernow jumped 30 cents to close at 80 cents.