MINING MARKETS AND INVESTMENT NEWS – WESTERN MARKETS — South Voisey’s Bay juniors’ stock slips as drilling starts

The Vancouver Stock Exchange composite index slid 7.28 points, or 1.2%, to close the May 6-12 report period at 623.83. The mining index followed suit, losing 13.67 points, or 2.8%, to close at 474.97.

Meanwhile, in Calgary, the combined value of the Alberta Stock Exchange nudged up 5.44 points, or 0.2%, to close at 2,324.08.

Vancouver-listed Abacus Minerals lost 20cents to close at 50cents. The company released assay results from the five remaining drill holes on its La Manchuria gold-silver property in Argentina’s Santa Cruz province.

Highlights included 24.1 metres grading 0.69 gram gold and 131.3 grams silver per tonne in hole LM-3, including a 1.5-metre interval grading 1.64 grams gold and 1,876 grams silver and a 1.1-metre interval grading 9.54 grams gold and 222.1 grams silver. A second phase of drilling is now under way.

Energold Mining gained 3cents to close at 58cents. Toronto-listed Eldorado Gold recently sold its 37.5% interest in Energold to a group of buyers, including Yorkton Securities, First Marathon Securities, Goepel McDermid Securities and Haywood Securities.

Cabo Exploration Ventures lost a penny to close at 8cents in heavy trading.

The company entered into an agreement to purchase 100% of privately held Canada Pumice, which holds a 45-million-tonne volcanic lava rock deposit on the Klara claims near Nazko, B.C. The tephra, tuff, breccia and basalt on the Klara claims have industrial, horticultural and agricultural applications.

Ascot Resources and Major General Resources have entered into an agreement to allow Monopros, the Canadian subsidiary of De Beers, to acquire a 51% interest in the Victoria Island diamond property in the Northwest Territories. Monopros recently discovered several diamondiferous kimberlite pipes to the north of two targets identified by Major General and Ascot.

Monopros will have to spend $2 million on exploration and make payments totalling $200,000 to the partners over the next three years. Ascot rose 9cents to close at 55cents. Major General lost a penny to close at 45cents.

Donner Minerals lost 25cents to close at $2.57. The company recently announced that drilling has begun at the South Voisey’s Bay project in Labrador. Two rigs are drilling a property shared by Donner and Northern Abitibi Mining and another is working on a property shared by Donner and Cypress Minerals. Toronto-listed Teck can earn half of Donner’s interest in any of its South Voisey’s Bay joint ventures. The total budget for this year’s exploration program at South Voisey’s Bay rings in at $14.8 million.

Northern Abitibi lost a quarter to close at $1.49. Cypress Minerals shed 6cents to close at 58cents.

International Freegold gained 9cents to close at 71cents. The company recently completed a non-brokered private placement of shares and warrants worth $1.4 million. Toronto-listed Barrick Gold is earning a 51% interest in Freegold’s Golden Summit project in Alaska.

El Misti Gold lost 21cents to finish at $1.40. The company announced that it is mobilizing five more drill rigs to its Sinchao property in Peru, where drilling has fallen behind schedule. El Misti reports that the reverse-circulation samples taken to date have shown visible copper mineralization.

Auspex Minerals announced that the due diligence study of the Aljustrel Mining complex in southern Portugal has been completed. Auspex and joint-venture partner International Vestor Resources intend to initiate a $40- to $45-million feasibility study to bring Aljustrel back into production. Auspex’s shares lost 4cents to close at 46cents. International Vestor last traded at 90cents.