Vancouver Stock Exchange Drill hole adds some zip to market

After what seemed to be a long dry spell in discovery, War Eagle Mining put some zip back in the market when it reported a 275-ft interval grading 0.161 oz gold and 1.58 oz silver per ton from a depth of 425 ft to 700 ft on its property near Boise, Idaho. The vertical hole (which ended in ore grade mineralization) was drilled 10 ft to the east of a previous hole which intersected 75 ft of 0.114 oz gold and 0.41 oz silver per ton from a depth of 165 ft to 240 ft. (The more recent hole was drilled to “twin” the previous hole to its total depth of mineralization.) Gold mineralization is said to occur in both highly altered volcanic sediments and quartz latites, and is widely disseminated in conjunction with the alteration. According to the company’s mining consultant, it’s still too early to determine the attitude of the zone and consequently the exact true width of the intersections. A 10,000-ft reverse circulation drill program is continuing on the property in order to determine its potential to host a bulk tonnage, open- pit operation.

While War Eagle gained 89 to $1.60 over our report period, by press time it had climbed a further 43 to $2.03. Indeed, all this trading activity finally nudged the gravity- bound VSE Index up 1.88 pts at 825.37. Although 401 issues remained unchanged, advancers led decliners 161 to 151.

Doron Explorations also moved ahead over our report period, gaining 42 to $1.31 after announcing it had encountered visible gold in four drill holes on its Caribou property in the Yukon. The holes were drilled along the strike length and down dip extension of a high grade gold-bearing quartz vein discovered in a recent exploration program. Investors are beginning to take note of American Pacific Mining now that it’s reporting a healthy cash flow from the El Mochito base metals mine in Honduras. The issue gained 30 to $5.

Surf Inlet Mines, drilling a gold project near Timmins, Ont., climbed a further 20 to 55 , while Uranium Resources, primarily involved in uranium projects suitable for the in-situ process of mining, gained 8 to $1.68. Treminco Resources was also busy, gaining 10 to 90 . The company has a small gold mine near Yellowknife in production, and is gearing up to build its own 200 tpd mill.

Quartz Creek slid 50 to $1.35 and Tungco Resources also lost ground, slipping 9 to 31 .