STOCK MARKETS — Gold’s increase helps markets post modest

The recent increase in the price of gold, reportedly tied to buying by investment funds, likely helped western markets post modest gains during the week ended Oct. 12.

Gold gained more than US$13 during the period, finishing at the US$366-per-oz. level.

The Vancouver Stock Exchange resource index gained 44.92 points to 1,374.02 while the composite index edged up just over eight points to close at 999.18. Trading on the exchange is heading toward a record high this year, with year-to-date volume to the end of September being 4.4 billion shares. This compares with the 1987 record of 4.8 billion shares for the entire year. Up to the end of September, VSE-listed companies had raised $770 million, compared with $293 million in the same period last year.

Eurus Resource was among the most active traders this week, with more than 1.5 million shares traded. The issue gained 15 cents to close at $1.21 after Prime Equities International announced it plans to sell its interest in the company.

Prime plans to sell its 1.1 million shares through the facilities of the VSE and, subject to regulatory approval, transfer its 178,898 escrowed shares. Prime closed down 40 cents at $3.55.

News of the discovery of “significant” gold and base metal mineralization on its Abancay joint venture in Peru left Southwestern Gold unchanged at $5. The company released preliminary sampling results ranging up to 82 ft. grading 6.68% lead and 10.29% zinc.

Canadian Comstock Explorations is in the final stage of negotiating the acquisition of the San Pedro gold project in Mexico. The company believes the project has the potential to produce more than one million ounces of gold and 30 million oz. silver. Property details will be released upon completion of the deal.

The issue gained a dime to close at 32 cents.

A private placement of 1.8 million units at 65 cents each will provide Morgain Minerals with funds for infill drilling at its Cuatro Hermanos copper-molybdenum project in the Mexican state of Sonora. A preliminary resource in the Main zone is estimated at 222 million tons grading 0.42% copper and 0.022% molybdenum per ton.

Morgain added 12 cents to close at 75 cents.

Loki Gold added 23 cents to finish the week at $1.25. The company has acquired from Hemlo Gold the remaining 51% interest in the Brewery Creek project in the Yukon. Loki paid Hemlo $2 million plus two million common shares. The former plans to complete a feasibility study next spring. A preliminary geological resource of oxide material is estimated at about 11 million tons grading 0.058 oz. gold.

Adrian Resources was active, with more than 1.1 million shares traded. MinAmerica acquired an additional 550,000 shares of the company through the exercise of 250,000 share-purchase warrants, as well as purchases through the market.

MinAmerica, a privately held Panamanian company, owns 3.7 million Adrian shares (17.7%) plus warrants to buy an additional 3.3 million shares. Proceeds from a recent $2.4-million private placement gives Labyrinth Resource funds to cover exploration, property payments and additional acquisitions in the mining district of Venezuela known as El Callao. Preliminary results of current exploration in the gold belt have been promising, Labyrinth says. It closed up 20 cents at $4.

Marlat Resources finished up 35 cents at $2.20. The company has reached an agreement to acquire mineral claims in north-central Nevada. Gold Giant Minerals gained another 30 cents to close at $2.80 as work continues on its White River project in northern Ontario. Its partners are Akiko Gold Resources and Toronto-listed Hemlo Gold Mines.

Akiko, which completed a private placement of 1.1 million units at $1.40 each, lost a dime at $1.70.

Akiko and partner Bradner Resources are encouraged by preliminary drilling results from their Crescent Valley project in Nevada.

Toronto-listed Consolidated Ramrod is earning a half interest in the project and plans more drilling before year-end.

Bradner closed up 11 cents at 53 cents.