MINING MARKETS & INVESTMENT NEWS – WESTERN MARKETS — Western markets cool on Starcore, Argentina Gold

The Vancouver Stock Exchange composite index sank 5.1 points, or 1.2%, to close the week ended March 23 at 419.57. The mining index lost 6.74 points, or 2.1%, and finished at 307.11.

Meanwhile, the combined value of the Alberta Stock Exchange tacked on 2.81 points, or 0.15%, and closed at 1919.13.

High-flying Starcore Resources and joint-venture partner ProAm Explorations returned to earth with the release of initial drill results from the Samuels Lake property near Atikokan, Ont. Starcore dove 65 cents and closed at 40 cents while ProAm tumbled 40 cents to finish at 36 cents. Howe Street hopes slumped on assays from hole 3. The hole cut 69.3 metres averaging 0.15% nickel and 0.22% copper plus 0.074 gram combined platinum-palladium-gold per tonne. This intercept was followed by a 45.74-metre interval that assayed 0.64% nickel, 0.82% copper and 0.8 gram platinum-palladium-gold per tonne.

Pan Asia Mining tacked on 15 cents and closed at 33 cents. The company is in the midst of arranging a $4.8-million financing package, proceeds of which will be put toward the initial phase of development and capitalization of the 701 Changma diamond mine in China.

Diagem International Resource jumped 8 cents and closed at 17 cents. The company announced it has entered into an option agreement with mining giant Rio Tinto to explore and jointly develop two diamond licences in Brazil. The two licences cover 20,000 ha northwest of Diagem’s Chapada property and are believed to contain kimberlite occurrences, as well as rich alluvial diamond deposits. Diagem can earn up to a 40% interest in the properties by spending US$1.2 million on exploration.

Windspear Resources rose 12 cents and closed at $3.15. The company is continuing to work on its wholly owned Hilltop property, which lies south of the Camsell Lake project in the Northwest Territories. Winspear’s 1999 work program includes airborne and ground geophysics, as well as 2,500 metres of drilling designed to test 13 targets on the property.

Argentina Gold lost 25 cents and closed at $6.50. The company released more drilling results from its 60%-held Veladero property in northwestern Argentina. Diamond drill hole 2 was completed at the Amable target, and results confirmed continuity of high-grade mineralization near hole 89. At Amable North, hole 133 cut 149 metres averaging 0.96 gram gold. No significant mineralization was intersected in hole 127, which tested the Palito target.

Alberta-listed Oro Nevada tacked on 18 cents and closed at 71 cents. The company has arranged a private placement financing worth $1.2 million, which raises the corporation’s cash position to $9.2 million. Oro Nevada states that it is positioning itself to pursue potential acquisitions.