Alberta Stock Exchange Durvada gold discovery

Continuing weakness in the price of bullion which has recently been hovering around US$354 an oz. was reflected by lacklustre trading in gold stocks during the week ended July 10. Shares of Durvada Resources tumbled 44 cents to close at $2.35 despite announcements by the company that it has discovered some new gold showings on its Goodsprings Nevada property where the first dore bar was poured last month. Durvada discovered the new mineralization, which grades 0.015- 0.13 oz. gold per ton, in an area about two miles northwest of its Keystone mine. The average value from 300 surface samples taken along a 1,500-ft. strike length in the zone was 0.05 oz. gold. More sampling and trenching are planned with drilling to follow.

Golden Pacific Resources says it has committed a further $1 million for more exploration on the company’s Penon Blanco gold property near Coulterville, Calif. A 12,000-ft. drilling program is being planned to test for extensions to the Oro Rico gold deposit. Drilling will also test geochemical anomalies detected during the company’s previous $1-million program. Shares of Golden Pacific slipped 29 cents to close at $4.30 during the report period.

In northwestern British Columbia’s golden triangle region near Stewart, new deals continue to be made as companies position themselves in the play. In a recent deal, Yukon Minerals says it is negotiating to acquire eight more properties in the Galore Creek area where it bought two properties last month. Field work will commence on the claims when the agreement has been concluded. Yukon Minerals traded 145,500 shares for a gain of 1 cents before closing at 17 cents.

Other companies with claims in British Columbia’s golden triangle are Keylock Resources and American Ore which traded 170,800 shares to close down 5 cents at 24 cents. Keylock recently acquired the right to earn a 100% interest in a the Gossan and Lock claims from Marlin Developments.

PGE Resource has signed an exploration agreement with Noranda giving the senior company an option to earn a 70% interest in 115 claims owned by PGE near Mechanic Settlement in New Brunswick. Noranda will conduct a $100,000 program of mapping, trenching and drilling this summer. The senior company can earn its full interest by spending $750,000 on exploration and making cash payments totalling $125,000 over four years. Shares of PGE were unchanged at 53 cents.

Northfield Minerals was also unchanged at 90 cents after the company announced it is arranging a private placement of one million units consisting of two common shares and one warrant each. The units will cost $2 and the warrants permit each holder to buy one share of Northfield for $1.25 during the first year and $1.45 during the second year. Northfield is planning to start gold production this summer at the past-producing Cheminis mine, near Larder Lake, Ont.