STOCK MARKETS — Western markets soured by reports of tampering — Diamond hunters, golds stumble; mixed bag for foreign-oriented juniors

Western markets continued to take it on the chin over the report period ended May 20 as reports of sample salting and tampering caused investors to back away from junior gold exploration stocks (see page 1).

The Vancouver Stock Exchange composite index fell 27.45 points, or 2.63%, over the holiday-shortened report period to close at 1,045.67. The resource index dropped 22.42 points, or 1.17%, to finish at 1,898.59.

The combined value of the Alberta Stock Exchange was down 15.51 points, or 0.6%, at 2,556.37.

Diamond explorers with holdings in the vicinity of the Buffalo Hills kimberlite discovery of Toronto-listed Ashton Mining of Canada were down after the company released sampling results from another four kimberlites.

Alberta-listed Montello Resources, which holds 4 million acres in the area, slipped 12 cents to 59 cents. That company recently agreed to option up to a half interest in its land package to Alberta-listed Redwood Resources in return for staged payments totalling $6.5 million. Redwood was down 20 cents to $1.90.

New Claymore Resources, which holds 6 million acres, was down 30 cents to $2.85. Primero Industries, which can earn a half interest from New Claymore in a 250,000-Acre block, closed at 37 cents, for a loss of 12 cents.

Alberta-listed Troymin Resources, which holds 1.6 million acres, dropped 21 cents to 99 cents.

Blackrun Ventures has optioned a half interest in a 1.5-Million-Acre package, part of which is near Buffalo Hills, to Everest Mines & Minerals. The former finished down 17 cents at 98 cents, while the latter closed at $1.20, down 50 cents.

Close to 1.3 million shares of Argentina Gold traded hands as the issue added a dime to finish at $1.30. New drill results from the joint-Ventured Veladero project accounted for the increase. Argentina Gold holds a 60% interest, whereas Toronto-listed Barrick Gold holds the remaining 40%.

Northrich Pacific Ventures fell 46 cents to 70 cents. The company is drilling on the past-producing Coni-1 high-grade nickel-Cobalt property, 135 km east of Yellowknife, N.W.T.

Pacific Bay Minerals added to its holdings in the Finlayson Lake area of southeastern Yukon by acquiring an option from Toronto-listed Cominco to earn a 60% interest in 518 claims. Pacific Bay must spend $1 million in exploration over four years. The issue closed up 13 cents at 45 cents.

Alberta-listed Gitennes Exploration edged down 30 cents to $7.50. The company has resumed second-phase drilling at the Rio Suro bulk-Tonnage gold prospect on its Virgen property in north-Central Peru. About 30 core and reverse-Circulation holes will be drilled over the next six weeks.

Assay results from the first eight of 20 holes drilled to date on the Sinter zone at the San Martin concession in Honduras indicate a flat-lying gold zone with an average thickness of 18 metres. Results range from 22.9 metres of 0.86 gram per tonne to 21.3 metres of 1.73 grams gold. San Martin is a joint venture held 80% by Mar-West Resources, which dropped 2 cents to $1.69, and 20% by Curion Ventures, which remained unchanged at 45 cents.

Partners Greystar Resources and Churchill Resources have agreed to merge, subject to shareholder and regulatory approval. Each company holds a half interest in the Angostura gold-silver project in Colombia. Churchill shareholders will receive 1.3 shares of the amalgamated company for each share held, whereas Greystar shareholders will receive one new share on a share-for-share basis. The amalgamated company will retain the name Greystar Resources. Churchill added 11 cents to close at $1.55 and Greystar tacked on 6 cents at $1.26.

An 8-hole drill program by Ghana Goldfields on its Pampe concession in Ghana, West Africa, included a 200-ft. intercept averaging 0.22 oz. gold per ton.

The issue closed at $1.20, down 35 cents.