STOCK MARKETS — Disappointing DO-27 results spur western

Disappointing exploration results out of the Northwest Territories helped spur a continued slide in western markets.

The Vancouver Stock Exchange resource index took it on the chin, plunging 121.73 points to 1,453.44 for a loss of more than 7.7% during the week ended Aug. 9.

The composite index fared much better, sliding 29.61 points to finish just above the 900 level.

Tli Kwi Cho? It was more like “Tli Kwi Choke” as investors in the DHK group of companies ran for the exits in the wake of disappointing exploration results on the WO claims in the Northwest Territories.

Dentonia Resources, ASE-listed Horseshoe Gold Mining and Kettle River Resources jointly hold a 35% interest in the claims which are being explored by Kennecott. The three companies were caught in a brutal selloff after Kennecott determined that results from bulk sampling on the Tli Kwi Cho pipe do not support further work on the kimberlite.

Dentonia closed down $5.55 at $1.20, Kettle River dropped $9.61 to $2.14 and Horseshoe Gold closed off $5.73 at $1.02.

On a positive note, further work is planned by Kennecott on other targets within the joint-venture ground position. In the meantime, plans to merge Dentonia, Horseshoe and Kettle River have been shelved.

Other partners in the project are TSE-listed companies Aber Resources, with a 15% interest, and SouthernEra Resources, with a 10% interest. The diamond selloff was not restricted to the WO partners; it spilled over into other diamond explorers.

Great Western Gold and War Eagle Mining, partners in a large land package in Saskatchewan, both reacted poorly to the selloff. Great Western lost $1.55 to close at $2.90, while War Eagle closed down $1.83 at $3.30.

Winspear Resources fared the storm well, touching a high of $1.64 before finishing up 2 cents at $1.28 on more than 1.3 million shares. The company is exploring the Aylmer Lake West claim with SouthernEra and TSE-listed Adex Mining and recently reported the recovery of 180 diamonds from a 230-kg bulk sample. (Only four of the diamonds were macrodiamonds, however.) The start of a bulk sampling program on the Klipdrift diamond prospect helped Sentinel Resources buck the downtrend. The company plans to complete eleven 200-tonne bulk samples on a grid pattern over a 2.1 hectare diamondiferous kimberlite pipe. The issue finished up 21 cents at $1.05.

A new, improved name did not hurt Gincho International Venture, now known as Banner Mining. The issue closed up 17 cents after the company announced plans to acquire the Otjosondu manganese mine 130 km northeast of Okahanja, Namibia. Banff Resources did well, hitting a high of $1.09 before closing up 35 cents at $1.05. The company plans to acquire a 51% net interest in Kilembe Mines, which owns a Ugandan copper deposit with a proven and probable resource estimated to exceed

4 million tonnes grading 1.75% copper.

Further drilling results from the Black Pine property in Idaho helped owner Formation Capital add 60 cents to close at $3.35. The results included a 35-metre intersection in hole 6 grading 0.75% copper, a 41-metre intersection grading 1.17% copper in hole 15, and a 23-metre intersection grading 1.23% copper in hole 20.

American Bullion Minerals released additional assays from its Red Chris gold-copper project in British Columbia. The three new holes returned 219 metres grading 0.59% copper and 0.47 grams gold per tonne, 247 metres grading 0.73% copper and 0.38 grams gold, and 229 metres grading 0.54% copper and 0.28 grams gold. The results were not, however, much help to the issue’s share price, which shed 24 cents to finish at $2.31.

A private placement of $4 million will help Ariel Resources fund further work on its Costa Rican operations, including accelerated underground development at the San Martin mine and an expansion of the Matapalo Mill. Ariel finished up 12 cents at $1.62.