STOCK MARKETS — Western markets consolidate as indexes drop

Western markets continued to consolidate during the report period ended Nov. 15, with both the Vancouver Stock Exchange resource and composite indexes touching new lows for the year.

The composite index hit a low of 793.63 before closing down 22.75 points at 795.20. The resource index shed more than 28 points to finish at 1,304.91, a shade above its low of 1,303.63.

Major General Resources headed south after hitting a high of 67 cents, closing down 11 cents at 49 cents on more than 1.7 million shares. Investors are awaiting additional assay results from drilling at its Rendell-Jackman project in Newfoundland. The company has announced an 8.4-metre intersection grading 6.57% zinc, 0.8% copper, 1.44% lead, 49.6 grams silver and 0.39 grams gold in the Lochinvar area. A hole drilled 75 metres to the south is reported to have intersected several massive sulphide zones, including one 9-metre section containing visible base metal mineralization. Another hole, drilled 50 metres to the east of the first hole, included a 4-metre zone of massive pyrite but no visible base metal mineralization.

Recently listed Summo Minerals put in a strong performance, adding 21 cents at 95 cents, after releasing encouraging results from its Cashin oxide copper property in western Colorado. Ten of the company’s 12 drill holes intersected significant copper mineralization. Combining the results with seven old surface holes, the company reports an average intersection through a flat-lying, near-surface zone of 47.9 metres grading 0.65% copper. A preliminary resource estimate is being prepared.

Akiko Gold pulled out of a steep dive, adding 50 cents to close at $1.18 after touching a low of 50 cents. The company cited negative commentary in an influential newsletter as the primary reason for the original drop in price. The company was recently granted an exploration concession on a gold prospect in Ghana and is earning a half interest in a silver-lead-zinc project in Utah. Assays are awaited from drilling on Akiko’s Bru-Lovie gold project joint venture with Bradner Resources. Consolidated Ramrod is operator and can earn a half interest in Bru-Lovie from the joint venture.

Plans to acquire the Breton diamond property in the Coromandel area of Brazil left Canabrava Diamond down 24 cents at $1.75. The company has identified magnetic anomalies on the property, the largest of which is associated with yellow clays at surface. The company believes the clay represents a weathered pipe, and a small creek draining the area is reported to contain alluvial diamonds.

New-issue Pamlico Gold briefly outperformed the general market, trading as high as 70 cents before closing at 56 cents for a gain of a penny over its listing price. The company is earning a 51% interest in the Pamlico gold property in Nevada from Cactus West Exploration and Gold Dyke Mines, which will retain 39% and 10% interests, respectively. The joint venture plans to test the bulk-tonnage gold potential of the property. Extensive volcanic-hosted gold mineralization has been identified on surface, but no drilling has ever been done. Pamlico plans to initiate a reverse-circulation program in early December.

The discovery of two new gold zones at the Lo Increible No. 4 concession in Venezuela was little help to El Callao Mining. The issue bounced off a low of $1.10, closing down 2 cents at $1.20. Trenching returned 4.35 grams gold over 16.5 metres in one zone and 3.56 grams gold over 25.9 metres on another. El Callao has initiated a second phase of drilling on the property to test the new zones, as well as a number of known gold mineralized zones. Alberta-listed Fairmile Acquisitions took a hit, falling 34 cents to 68 cents after releasing assay results from recent drilling on the Buffalo Valley property in Nevada.