STOCK MARKETS — Seasonal doldrums leave western markets

Western markets appear to have slipped into the fall-winter doldrums despite the considerable amount of exploration activity taking place in the Southern Hemisphere.

Gold is not helping matters, although some comfort can be taken in the fact that its recent drop seems to have stabilized at the US$389-per-oz. level. The Vancouver Stock Exchange resource index slid 8.72 points to finish at 849.76 over the report period ended Oct. 18, while the composite index closed down more than 24 points at 1,371.46.

A joint-venture agreement on the Dunka Road copper-nickel property in northern Minnesota lit a fire under Argosy Mining, boosting the issue 39 cents to $2.24 on more than 1.6 million shares.

The company can earn a 60% interest in the project from Fleck Resources by buying $100,000 in stock at 25 cents per unit and spending $2.6 million over three years. Fleck closed up 25 cents at 52 cents on the news. The estimated open pit resource at Dunka Road totals 800 million tonnes grading 0.43% copper and 0.109% nickel.

Getchell Resources lost some of its shine, dipping 38 cents to $1.76. Recent drilling on the company’s 30%-owned Rainbow claims near Kamloops, B.C., returned lower copper values than the first three holes on a zone discovered this year. Toronto-listed Teck owns the remaining 70% and is planning a third phase of drilling to test the zone further.

An agreement to acquire a 40% interest in a copper deposit in Saudi Arabia gave a lift to Even Resources, propelling the issue up 32 cents to 90 cents. The property, owned by Alujain Corporation of Saudi Arabia, contains a potential open-pit resource estimated at 82 million tonnes grading 1.54% copper. The joint venture is planning a US$7-million program, to start in early 1995, in order to advance the project to final feasibility. Pacific Falcon Resources continues to gain ground, having touched a new high of $2.65 before settling at $2.60 for a gain of 45 cents. The newly listed company announced plans for a private placement of 1.8 million units at $2.25. Proceeds will be used to fund exploration and development on its Guinaoang copper-gold porphyry project in the Philippines. The current geological resource at Guinaoang is estimated at 500 million tonnes grading 0.37% copper and 0.37 grams gold per tonne.

A $1.8-million private placement helped Kenrich Mining add a dime at 65 cents. The company plans to use the proceeds from the placement to fund exploration work on its Corey property in the Eskay Creek-Sulphurets region of northwestern British Columbia.

Alberta-listed Gitennes Exploration slid 37 cents from a year-high of $1.50 after releasing additional drill results from the Horseshoe discovery at its Damoti Lake joint venture north of Yellowknife, N.W.T. Assay results ranged up to 4.7 metres grading 37.9 grams gold, but investors may have had higher expectations based on the discovery hole, which intersected 22.7 metres grading 38.7 grams gold. Gitennes holds a 25% working interest in the project, and, on vesting, Toronto-listed Consolidated Ramrod Gold will hold a 51% interest, with Athabaska Gold retaining the balance.

Da Capo Resources hit a new high of $5 before settling at $4.50 for a gain of 30 cents. The company is conducting a 2,000-metre first-phase drilling program at its Amayapampa property in Bolivia. The program is designed to test the strike extent of a wide zone of gold mineralization currently being mined by means of small-scale underground methods. Initial results include a 59.8-metre intersection grading 0.94 grams gold and a 145-metre intersection grading 2.12 grams gold. The company hopes to outline a bulk-tonnage deposit and has already established a preliminary resource of 4 million tonnes grading 3 grams gold based on underground sampling.