MINING MARKETS & INVESTMENT NEWS — WESTERN MARKETS — VSE gains reflect internet-related stocks

As speculative interest in internet-related stocks grows to unparalleled heights, those stocks are beginning to represent a good portion of the most active trading issues by volume on both the Vancouver and Alberta Stock Exchanges, leaving most junior mining and exploration companies to watch from the sidelines.

The composite index of the VSE rose 3.1 points, or 0.7%, during the holiday-shortened report period March 31-April 6 to close at 426.49, whereas the mining index was up 2.4 points, or 0.8%, to finish at 306.29. The combined value of the Alberta Stock Exchange jumped 58.32 points, or 2.9%, to finish the period at 2,037.1.

Alberta-listed Oro Nevada Resources continued its upward trend on speculation of a possible new acquisition. The issue tacked on another 36 cents to close at $1.66.

Toronto-listed SouthernEra Resources announced it was ready to begin diamond drilling at the Back Lake project in the Northwest Territories to test the possible source of the Yuryi diamond-bearing kimberlite boulders found along the shores of Munn Lake. Kalahari Resources, which holds a 19.38% stake in the project, rocketed to 55 cents before falling back to 37 cents for an 11 cents gain. Island-Arc Resources, with a 10.62% interest, tacked on 11 cents to finish at 35 cents.

Alberta-listed Cambridge Minerals closed at 28 cents, up 16 cents. The company holds the right to earn a 49% interest in Discover Canada Online, a web site offering internet travel booking services.

Aquest Minerals doubled to 40 cents. The James O’Rourke-led junior has reached an agreement to acquire a 100% interest in a privately-held Guatemalan mining company whose key assets include high-grade gold-antimony mineral concesions plus the mine, mill and smelting facilities of an underground and open-pit antimony operation currently on stand-by in the western highlands of Guatemala. Of interest is a 5-km-long trend of sediment-hosted high-grade gold mineralization. On closing of a 9-month due-diligence period, Aquest will be required to pay US$4 million in cash and US$6 million in Aquest convertible debentures, plus prepaid royalties of 5% of the recoverable metal value in the first 1 million tonnes of ore and 3% on the remaining reserve.

Diamond explorer Winspear Resources jumped 61 cents to close at $4.01. Winspear says it will vigorously defend Toronto-listed Aber Resources’ lawsuit brought on by Winpear’s decision to dilute Aber’s interest in the Camsell Lake joint-venture diamond project to 16% from the currently held 32.2%. Winspear has deemed Aber to have elected not to participate in the planned $12 program for 1999.

Starcore Resources remained unchanged at 35 cents, while partner ProAm Explorations was up 3 cents at 29 cents, on the release of geochemically anomalous values in the remaining holes of a 4-hole program on the Samuels Lake platinum-palladium prospect near Atikokan, Ont.