MINING MARKETS & INVESTMENT NEWS — WESTERN MARKETS — Monopros drilling helps juniors post gains

The Vancouver Stock Exchange composite index lost 14.98 points, or 2.5%, to close the report period ended June 9 at 573.81. The mining index slid 19.16 points, or 4.3%, to finish at 422.60. Meanwhile, the combined value of the Alberta Stock Exchange dropped 20.23 points, or 0.9%, to close at 2,220.19.

Ascot Resources found itself on the VSE’s most active list, gaining 23 cents to close at 66 cents, while Major General Resources gained a nickel to close at 42 cents.

The partners announced that De Beers Consolidated Mines subsidiary Monopros intersected kimberlite in the first reverse-circulation drill hole on their Victoria Island diamond project in the Northwest Territories. Monopros can earn a 51% interest in the property from Ascot and Major General (which own 75% and 25%, respectively) by spending $2 million on exploration and making payments to the partners totalling $200,000 over three years.

El Misti Gold lost 77 cents to close at 75 cents. The company released results from its drilling program at the Sinchao property in Peru, where gold, silver and copper mineralization is hosted within dacitic volcanics and porphyry. Highlights include 0.72% copper, 15.3 grams silver and 0.45 gram gold per tonne over the entire 200 metre length of hole SRC-21 and 0.43% copper, 0.31 gram gold and 3.5 grams silver over 196 metres in hole SRC-17. These wide, low-grade intersections, coupled with uncertain recovery potential, induced jitters in a hesitant market.

Great Basin Gold lost a quarter and closed at $1.55. The company recently arranged a $5-million financing, whereby First Marathon Securities and Nesbitt Burns have agreed to place up to 2.5 million special warrants at $2 per warrant. Each special warrant will convert into one common share and one share-purchase warrant redeemable for an additional share at $2 for one year.

Arizona Star Resource lost 16 cents to close at $1.69. The company issued an update on feasibility and exploration work on the Aldebaran property in Chile. Toronto-listed Placer Dome is the operator and is working on a final feasibility study on the Cerro Casale deposit. The target date for completion is set for February 2000. Placer can earn a 51% interest in the property, leaving Toronto-listed Bema Gold with a 24% interest and Arizona Star with 25%. Results of recent drilling have expanded the deposit to the southwest, and have also delineated a new gold zone 200 metres north of the Cerro Casale deposit. A new resource estimate is expected in late 1998.

Almaden Resources lost a dime to close at 70 cents. The company released results from its 17-hole, 2,390-metre reverse-circulation drill program on the Caballo Blanco project in Mexico’s Veracruz state. Initial assay results were low, but the drill intersections indicated that mineralization is widespread and is associated with skarn porphyry and late-stage veining.