STOCK MARKETS — Majors benefit from bullion’s price rise

Gold took a couple of runs at the US$400-per-oz. level over the report period ended Sept. 27, settling in the area of US$397.

The bullion action appeared to help major producers while the junior market remained little-affected.

The Vancouver Stock Exchange resource index added 21 points to finish at 1,429.65 while the composite index took the opposite track, losing 5.33 points to close at 868.67.

New-issue Pacific Falcon Resources finished at $1.74, up $1.34 from its 40 cents offering price. The company issued 2.5 million shares and plans to use the funds to develop the Guinaoang copper-gold porphyry deposit in the Philippines.

Preliminary estimates put the project’s resource at more than 500 million tons grading 0.37% copper and 0.01 oz. gold per ton.

Cash Resources jumped 39 cents to $2.24 after revealing that Robert Hunter, Robert Dickinson and Jeffrey Franzen invested $1.6 million in the company through a private placement at $1.48 per unit. The three promoters are well-known for their ability to make money for themselves as well as for the shareholders of their companies. Cash plans to use the funds to advance its Division Mountain coal property in the Yukon.

Additional high-grade values from the Willoughby property near Stewart, B.C., did not do much for Camnor Resources. The issue closed up 4 cents at 55 cents after releasing gold-silver intersections grading up to 0.93 oz. gold and 59 oz. silver over 6.6 ft. Camnor is earning a half interest in the property from Gold Giant Minerals, which added 3 cents to finish at 45 cents. Norcan Resources gained ground, adding 21 cents at 76 cents after announcing plans to raise up to $2.3 million through two private placements. The company plans to use the funds for further exploration on the NCJ-La Trinidad gold project in Venezuela’s Bolivar state.

War Eagle Mining was hit by selling, falling $1.45 to $2.35. The company recently released results from a 9-hole drilling program on its Fortuna property in Mexico. Two of the holes returned significant values from a vertical vein grading up to 0.17 oz. gold and 0.25 oz. silver per ton over 10 ft.

War Eagle also holds diamond claims in Saskatchewan with partner Great Western Gold. Great Western slid 60 cents to close at $1.30. The discovery of a third gold zone on the Andes project in Argentina helped HRC Development add 25 cents at $2.30. Further surface work is planned on the project before drilling starts next year. The Andes property is held in a joint venture with Toronto-listed Eldorado.

San Fernando Mining added 30 cents to close to $4.75. The company expects to resume exploring its La Fortuna mine property in Mexico this fall. Work will include exploration drilling on several new targets, as well as infill and expansion drilling on the Fortuna mine area.

Alberta-listed Flag Resources is continuing to drill a deep vertical hole on its Wanapitei anomaly northeast of Sudbury, Ont. The hole, now at 1,815 ft., has intersected 1,100 ft. of sub-economic nickel-copper mineralization and the company is hoping to locate its source. Flag added a penny at 61 cents. Hurley River Gold started mapping, sampling and backhoe trenching on its Raven claims in British Columbia. The company has completed a 4.5-million unit private placement, netting $1.26 million to fund the work. The issue added a nickel at $1.40.

Reports of gold interceptions in drilling on the Prongua Lake joint venture with Tukto Development in Saskatchewan helped Consolidated Pine Channel Gold. The issue gained 38 cents at 99 cents. Roasting, crushing and panning of drill core cuttings produced flakes of gold, although Consolidated Pine Channel stressed that it is far too early to estimate size or grade. Northern Orion Exploration continued to gain ground, finishing up $1.10 at $3.50. The company is acquiring an interest in 33 mineral projects in Argentina through the acquisition of an Argentine company from Miramar Mining and private Argentine interests.