STOCK MARKETS — Western markets barely withstand low gold prices — South Africa, Kazakstan among foreign plays eyed by investors

The Vancouver Stock Exchange composite index closed at 801.5, losing 14.45 points, or 1.8%, over the report period ended Sept. 23. The mining index finished down 19.87 points, or 2.7%, at 707.12.

The combined value of the Alberta Stock Exchange edged up 8.8 points to close at 2,456.19.

Rupert Resources was up 62cents at $2.33. The company has signed a formal agreement for the right to acquire up to a 75% interest in the subsurface mineral rights and up to a 50% interest in a tailings reprocessing project at the former-producing Crown diamond mine in South Africa. As part of a due diligence review, Rupert will process 200,000 tons of tailings and carry out 3,200 metres of drilling on the known kimberlite pipes at an estimated cost of US$450,000.

Steppe Gold Resources acquired an option to buy the Kosmurun and Arbastau gold-base metal deposits from a private Kazakstani company for cash payments totalling US$16 million over five years. The two deposits lie within the Steppe’s 4,400-sq.-km Mizek exploration licence in Kazakstan, 40 km to the south of its 51%-held Mizek gold project. The newly acquired deposits are estimated to contain 41.5 million tonnes grading 2.52% copper and 0.85% zinc, plus 0.86 gram gold and 19.4 grams silver per tonne. Steppe lost 11cents to close at 40cents.

Alberta-listed Gitennes Exploration was down 10cents to $5.05. The company has arranged a $10-million special warrant financing with RBC Dominion Securities and Goepel Shields & Partners.

A 97.5%-owned Chinese subsidiary of Global-Pacific Minerals has acquired the rights to earn up to an 80% interest in the Ou-Bar copper-gold porphyry project in China, 800 km northwest of Beijing. The issue rose 20cents to $1.12.

Newly listed Twin Star Minerals traded as low as 47cents before closing at $1.10. The company is engaged in mineral exploration in Nevada.

Borneo Gold has commenced a shallow 3,000-metre drill program on its 90%-owned Tanah Laut property in Indonesia. The company is targeting a large metasedimentary setting where fine gold is unevenly distributed in clusters within the weathered rock. The issue was off a penny at $2.24.

Low gold prices have induced Porcher Island Gold to broaden its focus to include oil and gas exploration. The issue closed up 6cents to 27cents.

Nickelodeon Minerals slipped 10cents to 60cents after acquiring an option on two gold and base metal properties in the Abaujszanto and Matra regions of northeastern Hungary. The company can earn an initial 75% interest by spending $150,000 on exploration and issuing 100,000 shares.

Alliance Pacific Gold was up 21cents at $1.11 after acquiring the rights to five Philippine gold and copper projects on the island of Luzon.

Hixon Gold Resources closed down 13cents to 25cents on the release of final results

from an initial 6-hole, 753-metre drilling program on the Stenpad property in Ghana. Drilling has been suspended pending the completion of an ongoing program of soil sampling, trenching, geological mapping and ground geophysics designed to replicate much of the previous work completed prior to April 1997. Hixon and its parent company, Toronto-listed Golden Rule Resources, came under fire earlier this year after check sampling was unable to duplicate previously reported high soil and trench results from the property. An independent technical audit concluded tampering was the most likely cause.