STOCK MARKETS — Gold exploration companies pique investor

Investor interest in gold exploration companies is continuing to gain steam, with the Vancouver Stock Exchange resource index up almost 5% during the report period ended Jan. 18, to finish at the 1,770-point level.

The composite index followed suit with a respectable, but more modest, gain of 2.5% to close at 1,124.13.

Gold edged up almost $6 to the US$393-per-oz. level, adding to the already bullish market sentiment for the yellow metal. In fact, if a company owns a reasonable gold property or even plans to acquire one, chances are its stock is moving.

Taking advantage of the market, a number of companies announced plans for fund-raising ventures.

Southwestern Gold plans to raise $15.5 million through a private placement of special warrants at $7.75 each. The company has formed a joint venture with Cambior on the Cristo Rey and Santa Rosa properties in Peru and is exploring for diamonds in Brazil with partner Hillsborough Resources. Southwestern touched a high of $9.25 before closing up $1.38 at $9.

Financing plans did not seem to hurt the share price of Eldorado either. The company completed negotiations for a private placement of 2.5 million special warrants at $3.75 each and plans to use the proceeds to fund development of its Mexican-based gold properties. Eldorado closed up 55 cents at $4.45. Argentina Gold arranged a private placement of 500,000 units at $1.80 each to fund work on its La Poposa property in Argentina, as well as finance the acquisition of additional properties in the country. The issue added 34 cents to close at $2.

Lou Wolfin’s Avino Mines & Resources and Coral Gold did well. Avino, which owns (subject to an option) the old Bralorne Pioneer mine in British Columbia, closed up 18 cents at $1. Coral, which owns property under option to Amax Gold in the Pipeline area of Nevada, added 42 cents to finish at $1.95.

Mutual Resources continues to roll along; it added another 30 cents to finish at $1.75. The company has arranged a brokered private placement of 3.5 million units at $1.50 per unit and plans to use the funds to cover cash requirements of its 5% indirect interest in the Tarkwa gold project in Ghana, as well as other recent and planned project acquisitions in West Africa. Despite a generally negative view of Quinto Mining by mining analysts at local brokerage firms, the issue put in a healthy performance to close up $1.15 at $4.70. Paul Schiller, president, said the company’s graphite project near Lumby, B.C., is not fully understood by analysts. Schiller notes that the graphite product will be extremely fine, making it rare and highly marketable to the composite plastic industry as a filler.

The intersection of kimberlite at the Candle Lake joint venture of War Eagle Mining and Great Western Gold gave both issues a big boost. War Eagle leapt 75 cents to $2.20 while Great Western jumped 70 cents to close at $3.10. Samples from the first two holes of a 10-hole program have been sent for analysis.

Plans to acquire two separate concessions in Ghana helped Nucore Resources post a 17 cents gain to 41 cents. The company also mobilized an exploration crew to its Nuevo Corazon de Jesus joint venture with New Aegis Resources in Guyana. New Aegis added 13 cents to finish at 68 cents.

Plans to enter into a joint venture on an unnamed gold project in Eastern Europe gave Kingston Resources a 19 cents boost to 67 cents. Details of the project will remain confidential until the final deal is signed. Contrary to the report in last week’s column, TSE-listed Cathedral Gold does not have an interest in the Damoti Lake project in the Northwest Territories. The other company involved is TSE-listed Athabaska Gold Resources.