STOCK MARKET — New Labrador find not enough to buoy western markets — Cross Lake and Ag

Armeno among host of active juniors in resource sector

The Vancouver Stock Exchange composite index closed down 4.96 points, or 0.6%, at 833.44 over the report period ended Oct. 21. The mining index was off 9.36 points, or 1.2%, finishing at 739.38.

The combined value of the Alberta Stock exchange closed at 2,594.23, for a gain of 18.24 points, or 0.7%.

Results from a drilling program managed by Toronto-listed Teck on the South Voisey Bay project, held equally by Donner Resources and Alberta-listed Northern Abitibi Mining, grabbed the attention of investors. The major intersected a 1.1-metre interval grading 11.75% nickel, 9.7% copper and 0.43% cobalt at a downhole depth of 176.8 to 177.9 metres in hole 75. The hole is 250 metres west of hole 67, which intersected three narrow massive sulphide intervals ranging from 1.35 to 1.93% nickel, 0.84 to 1.64% copper and 0.17 to 0.26% cobalt over thicknesses of 0.1 to 0.6 metre and at a depth of between 176.2 and 180.4 metres. Donner closed at $3.77, having jumped $2.74, while Northern Abitibi rose $1.63 to finish at $2.20. Teck can earn half of Donner’s interest in the prospect.

Donner holds an extensive land position in the core area surrounding its discovery through joint ventures with a number of juniors, including: Mandorin Goldfields, up 34cents at 42cents; Major General Resources, up 21cents at 58cents; NDT Ventures, up 17cents at 63cents; Latitude Minerals, unchanged at 60cents; Cypress Minerals, up $1.19 at $1.60; Curion Ventures, up 34cents at 71cents; and BMA Mining, up 47cents at 87cents.

A new massive sulphide find by Cross Lake Minerals at its fully owned Sheraton-Timmins property in the Timmins area of northern Ontario is generating lots of attention. Cross Lake traded down 40cents in heavy trading to close at $4.50. The company has arranged a $4-million private placement with Toronto-listed Golden Knight Resources, which holds a 60% interest in the adjoining Nighthawk project.

The other stakeholders in Nighthawk include Cross Lake, with 16%: East West Resource, also with 16%; and Canadian Golden Dragon Resources, with 8%. East West slipped 5cents to 69cents, and Golden Dragon closed down 8cents to 60cents.

Ag Armeno Mines & Minerals was active during the week, trading up 6cents to finish at 19cents. The company announced that negotiations were under way to acquire exploration properties in the Timmins area.

Alberta-listed Gallery Resources reported that a deep drill hole, currently in progress, has intersected 160 ft. of heavily disseminated sulphides at a depth of 1,605 to 1,765 ft. on its Okak Bay property in northern Labrador.

The hole is being drilled to test a deep geophysical anomaly, defined at a depth of 3,500 ft. Gallery closed at 84cents, up 23cents.

Booker Gold Explorations has signed a letter of intent to earn up to a half interest in Toronto-listed Noranda’s Morrison property, which is adjacent to Booker’s wholly owned Hearne Hill copper-gold project, northeast of Smithers, B.C. Booker must spend $2.6 million on exploration and deliver a bankable feasibility study. Booker slipped 19cents to $2.41.

Alberta-listed partners Blackstone Resources and Glenhaven Resources both lost ground after reporting preliminary results from a widely spaced 12-hole drill program on the Taiga nickel project in the Yukon. Hole 8 intersected 25.5 metres averaging 0.51% nickel and 0.41% zinc, including a 5.3-metre interval of 1.42% nickel and 0.7% zinc. Blackstone lost 65cents to close at $1.59, while Glenhaven shaved off 32cents to finish at 69cents.