STOCK MARKETS — Western markets show signs of renewed life

With summer nearly over, expectations are that trading activity may pick up a little steam on western markets.

The slump of recent months is a reflection of diminishing investor interest in diamond-related stocks, and in junior companies active in Venezuela. Both enjoyed a good run earlier in the year but came back down to earth this summer as results from some of the higher-profile projects failed to live up to expectations.

Western markets showed signs that an upturn may well be around the corner. The Vancouver Stock Exchange’s composite and resource indexes had both come under downward pressure over the summer months. But this trend was reversed over our report period ended noon, Sept. 7, as the resource index gained a healthy 40.96 points to 1,402.42 from last week. The composite index followed suit, posting a gain of 13.88 points to the 873-level over the week. Alberta-listed Bearcat Explorations, primarily active in the oil and gas sector, was the most active issue over our report period, ahead 18 cents at $2.38. The recent activity reflects a private placement financing. Regent Ventures was the most active issue on the Vancouver Stock Exchange, ahead a modest 2 cents at 67 cents. The company says investor interest reflects encouraging results from a trenching program at its gold project, situated at the headwaters of the Klondike River, near Clear Creek in the Yukon.

The company reported that visible gold was discovered in oxidized, brecciated and silicified sedimentary rocks from the trenched area. The exposed zone (named the 50-50 zone) is viewed as a stratabound gold target. Assays from the trenching range from 0.02 to 0.059 oz. gold per ton. Regent staked an additional 86 claims for a total of 338 claims covering about 26 square miles. Another junior exploring in the Yukon, Cash Resources, was active, up 34 cents at $1.41. The company is busy with a trenching program at its Killer gold project in the Killermun Lake area (southeastern Yukon). The program returned encouraging results from the 63 samples, which averaged 0.47 oz. Interest in diamond exploration has not yet recovered from the less-than-encouraging results released from the Yamba Lake project, and the separate Tli Kwi Cho kimberlite in the Northwest Territories. Mill City Gold, a partner in the Yamba Lake venture, edged down another penny to 44 cents. Tenajon Resources was off 6 cents at 40 cents over the week. The junior is involved in the Cross Lake diamond project with partners Ashton Mining of Canada and Pure Gold Resources.

Some new results were released from the Northwest Territories project, involving core samples recovered during drill testing earlier in the year and processed through Ashton’s North Vancouver laboratory.

A total of 2.4 tonnes of core material was processed, and seven diamonds larger than the commercial threshold of 1 mm were recovered. These stones have a combined weight of 0.174 carats, which implies a diamond grade of 7.3 carats per 100 tonnes for the material tested. The companies note, however, that the significance of this figure must be qualified by reference to the relatively small sample size. The area of the pipe, as defined by drilling to date, is estimated at 1.8 hectares.

Brookline Minerals, a junior primarily involved in the mineral sector, was up 7 cents at 63 cents, after reporting an agreement-in-principle to buy shares of two companies drilling several oil and gas concessions off the shore of Nigeria. One of those companies, Canadian Industrial Minerals, has been an active trader in recent weeks. The issue gained another 19 cents this week to $1.53.

Newly listed Bralorne-Pioneer Gold Mines closed the week at 59 cents. The junior owns an interest in several mining properties near Bralorne in the Lillooet mining division of southern British Columbia. The region hosts several past-producing gold mines.