MINING MARKETS & INVESTMENT NEWS – WESTERN MARKETS — Diamonds, Argentine gold stir investors over flat week — Diamond explorers, juniors with ground in Argentina attract investor attention

The Vancouver Stock Exchange composite index edged up 3.3 points to close the report period ended Dec. 1 at 393.08. The mining index remained steady at 290.89, gaining only a hundredth of a point from last week. Meanwhile, the combined value of the Alberta Stock Exchange dropped 27.02 points to 1,749.08.

Winspear Resources jumped 65 cents to close the week at $2.79. Investors are eagerly awaiting new bulk-sample results from the Snap Lake diamond dyke in the Northwest Territories. The company has negotiated a private placement worth $10.6 million to help fund the 1999 exploration program. Winspear holds a 67.8% interest in the Camsell Lake project, with Toronto-listed Aber Resources holding the remainder.

Cross Lake Minerals posted results from further drilling at its Sheraton-Timmins project near Timmins, Ont. The most encouraging result came in hole 63, which extended the down-plunge length of the mineralized zone near hole 49. A 40.5-metre interval cut 1.9% zinc, 0.43% lead, 35.7 grams silver and 220 parts per billion gold starting at a down-hole depth of 393.5 metres. Cross Lake’s issue dropped 17 cents to 63 cents.

Argentina Gold tacked on 7 cents to close at $2.66. The company continues to drill at its 60%-held Veladero property in Argentina. The market is anxiously awaiting further drill results from the Amable target.

Madison Enterprises released long-awaited resource estimates from its 65%-owned Mt. Kare project in Papua New Guinea. The total uncut, indicated and inferred resource has been pegged at 20.4 million tonnes averaging 5.6 grams gold and 28.7 grams silver per tonne. This translates to 4 million contained ounces gold and 18.8 million contained ounces silver. Madison’s issue lost 4 cents, closing at an even $2.

Auspex Minerals and partner International Vestor Resources tabled a prefeasibility study on the Aljustrel mine complex in southern Portugal. The study was performed by Rescan Engineering with input from Hallam Knight Piesold. The study suggests that the project could yield an internal rate of return of 43.9% on an after-tax basis, with a net present value of US$65.4 million at a 10% discount rate. The payback period is 2.4 years. The calculations are based on a long-term zinc price of 55 cents per lb. Mining and processing of the Moinho and Feitais deposits could last 12 years, with excellent potential to define further high-grade reserves. Both Auspex and International Vestor hold a 37.5% in the complex. The remaining interest is held by Pirites Alentejanas and its major shareholder, the Portuguese state mining agency. Auspex lost 3 cents to close at 24 cents, while International Vestor tacked on 2 cents to 40 cents.

Alberta-listed partners Montello Resources and Redwood Resources completed the 1998 drilling program at their Legend property in northeastern Alberta. Two new pipes were discovered: Xena and Legend. The companies state that the last three kimberlites identified were found under much shallower till cover and will be easier to bulk-test. Exploration will continue in January with follow-up geophysics and further drilling. Montello lost 3 cents to close at 27 cents, whereas Redwood lost 13 cents to finish at 16 cents.