STOCK MARKETS — Bullion’s strength fails to boost markets

Continued strength in gold bullion was not enough to hold up western markets over the period ended May 31.

Gold held in at the US$387-per-oz. level while the Vancouver Stock Exchange resource index dipped 23.71 points to 1,647.56 and the composite index edged off 2.11 points, closing at the 1,030 level.

New Dolly Varden Minerals, meanwhile, seems to have been the target of mischief (to put it mildly). A press release issued in its name mentioned the discovery of diamonds on its namesake property in the Territories. The stock closed up $1.15 to the $3.65 level (on June 1), presumably on the “news.” However, The Northern Miner learned that the release was bogus, that New Dolly Varden had not issued any press release. In fact, there has been no drilling on the property. The property adjoins the northeast boundary of the Yamba Lake concession.

News that Pegasus Gold will not proceed with the takeover of El Condor Resources caused the issue to drop 90 cents to $4.85.

Pegasus had offered $7.50 (in Pegasus stock) for each share of El Condor. The latter holds a 60% interest in the South Kemess copper-gold project in north-central British Columbia, for which a new buyer will now be sought. The news also hurt the company’s 40% joint-venture partner, St. Philips Resources, which was not included in Pegasus’ original takeover offer. St. Philips slid 80 cents to close at $1.65.

Three other companies in the Robert Hunter-Robert Dickinson group showed weakness in the wake of Pegasus’ decision. (Hunter and Dickinson are chairman and president, respectively, of El Condor.)

Taseko Mines, which hopes to attract a buyer for its large copper-gold project in British Columbia, lost 50 cents on little volume to close at $17.87.

Pacific Sentinel Gold, which is developing a copper-gold project in the Yukon, slipped 35 cents to $3.

Romulus Resources, a shell company looking for a project, lost 25 cents to close at $1.55.

Good-grade gold and silver intersections at the Fairview-Stemwinder gold property near Oliver, B.C., failed to help owner Oliver Gold, which lost 7 cents to close at 45 cents.

The drilling returned values of up to 6.28 oz. gold and 2.35 oz. silver per ton over 8.4 ft. (Hole SC-94-1) and the company plans further drilling. Aquiline Resources did well, adding 30 cents to close at $1.75. Glamis Gold is performing pilot-scale leach test and feasibility work on Aquiline’s Cieneguita gold deposit in Mexico. The company is also considering joint-venturing some of its nine copper-silver-gold properties in Michoacan state .

Mill City Gold was active over the week, trading more than 1.4 million shares to close up 21 cents at $1.86.

The company, along with joint-venture partner Tanqueray Resources, is holding discussions with “international mining groups” regarding their Yamba Lake diamond property in the Northwest Territories.

Alberta-listed Tanqueray added a nickel at $3.80.

Haddington Resources slipped a dime on more than two million shares to close at 65 cents. The company has acquired options on two groups of claims in Ontario and is negotiating further property options.

Murray Pezim’s Prime International Equities, which holds share positions in several juniors (including Haddington), added 55 cents to close at $3.60. Eurus Resource continued to lose ground after announcing it will transfer, back to owner Crystallex Resources, its right to acquire a half interest in the Albino property in Venezuela.

Eurus, which lost a dime to trade at a new low of 45 cents, will receive 750,000 shares of Crystallex plus warrants to buy an additional 375,000 shares at $8 in the first year and $9 in the second.

The company will also receive certain royalty interests in the Albino property which Crystallex is bringing into production.

Crystallex added a nickel to finish at $4.70.