STOCK MARKETS — Gold’s gains fail to boost western markets

Despite the firming of eastern major markets and gold’s creep upwards to the US$390-per-oz. level, western markets continued to slide during the report period ended Sept. 13.

The Vancouver Stock Exchange composite index slipped more than 12 points to finish at 865.35 while the resource index notched down less than a point to close at 1,394.81.

Alberta-listed Gitennes Exploration rocketed up 60 cents to $1.15 on reports of visible gold mineralization over core lengths of up to 25 metres from four recent drill holes on the Damoti Lake project, northwest of Yellowknife, N.W.T.

Gitennes holds a 25% working interest in the project while Toronto-listed Consolidated Ramrod and Athabaska Gold hold rights to 51% and 24%, respectively.

Preliminary results from the initial drilling on the Goodnews Bay platinum prospect in Alaska did not help Starcore Resources, which lost 19 cents to finish at 37 cents.

The company, which is earning a 70% stake in the property, encountered anomalous platinum values in the first hole and no significant results in the second. Assay results are awaited for five additional holes on two other target areas. Placer workings on water courses draining the property area have produced some 650,000 oz. of platinum and a load source has yet to be located.

Bralorne-Pioneer Gold Mines did well, adding 23 cents to finish at 82 cents. The company recently started a diamond drilling program on the Bralorne gold property in British Columbia to test the downdip extent of two parallel veins. The company is earning a half interest in the property from related company Avino Mines & Resources. Avino lost 11 cents to finish at $1.09. A 23 cents jump to $1.15 prompted Hurley River Gold to advise that there have been no material changes in its affairs. The company is continuing to review and investigate various property proposals.

A change of management and a gold-silver property acquisition in Columbia helped Greystar Resources add 19 cents to close at 80 cents. Mapping and chip sampling on gold-silver-bearing shear zones and vein stockworks at the two project returned values of up to 1.32% copper, 13.24 grams gold and 63.8 grams silver per tonne over 6 metres.

Management of Greystar, which had been under the direction of Noramco Mining, is now in the hands of David Rovig and Assa Manhas. The new principals of the company intend to build Greystar into a significant exploration company with an initial emphasis in Latin America.

Cash Resources continues to gain ground, adding 34 cents to close at $1.75. The company reports that trenching on its Division Mountain coal property indicates a geological open-pit resource of 15.8 million tonnes of low-sulphur, sub-bituminous B coal. A diamond drilling program is expected to get under way on the property shortly.

Toronto-listed Teck is about to start a drilling program on the Rainbow group of claims near its Afton mine in British Columbia. The company is following up a drill hole which intersected 62 metres grading 0.7% copper earlier this year. Teck is earning a 70% interest in the property from Getchell Resources, which added 14 cents to close at $1.05.

Consolidated Madison Holdings took a hit, dropping 86 cents to close at 74 cents. The company reports that it is not aware of any material changes in its affairs which would account for the drop. Consolidated Madison recently completed a program of 16 trenches on the Yuruan concession in Bolivar state, Venezuela, returning values of up to 7.47 grams gold over 18 metres. The company is currently renegotiating an agreement with Rare Earth Resources which would result in the latter making a further US$1-million exploration commitment to earn a 50% interest in an expanded land package which includes the Yuruan. Rare Earth closed down a dime at 30 cents.

Alberta-listed Rhonda Mining gained ground, adding 65 cents to close at $4.75. The company is earning a 50% interest in the Epworth project in the Northwest Territories from Noranda and reports the discovery of new sediment-hosted copper mineralization. The joint venture is completing a geophysical survey in an effort to outline drill targets for 1995.