STOCK MARKETS — Yellow metal adds shine to western markets

Continued strength in gold helped western markets as the Vancouver Stock Exchange resource index posted a 36.79-point jump to 1,573.52.

The composite index remained relatively quiet, edging up just over two points to close at 1,023.98 for the week ended Dec. 14.

Gold gained almost US$10 per oz. to close at the US$387-per-oz. level. Pacific Sentinel Gold put in an impressive performance, jumping $1.10 to close at $3.70.

The company, which is developing a large porphyry copper-gold project in the Yukon, was recently recommended in a U.S.-based investor newsletter. Recommendations by market letters in the U.S. also helped Delta Gold Mining with a leap of $1.98 to $5.88.

Delta has started field work on its Diwawal gold project in Mindanao and hopes to acquire other gold properties in the area.

Chase Resource, which has shares management with Delta, jumped 75 cents over the trading period to close at $4.50.

The company is developing a large copper-gold porphyry in the Philippines and has acquired the T’Boli gold project on the southern island of Mindanao. This is reported to be one of the most prospective gold plays on the island, the site of a modern-day gold rush.

Some profit-taking in major metal issues on eastern markets did not seem to have much of an effect on junior explorer Sutton Resources. The company, which is developing a nickel-cobalt belt in Tanzania with BHP Minerals and a gold project in Guyana, added $4.38 to close at $29.13.

Gossan Resources went for a ride over the period, trading as high as $1.50 before closing up 32 cents at $1. The company has resolved land tenure problems with the Cross Lake First Nation over a chromite deposit in southeastern Manitoba and a major stainless steel producer is reported to be interested in the project.

Consolidated Pine Channel fared poorly after reporting that a previously announced $1-million private placement at $1.99 per unit has been canceled. The issue, which has a short position of more than 380,000 shares, lost 38 cents to close at $1.57.

Carson Gold has arranged a private placement of 3.035 million units at $4.25 each.The placement appears to have gone well, given the issue’s close at $4.90 for a gain of 55 cents on the week.

Athena Gold added 15 cents to $1.30.

The company’s Talapoosa joint venture with Pegasus Gold in Nevada was mentioned in a recent write-up on Pegasus gold by Bunting Warburg. The investment firm predicted the project will likely be Pegasus’ next producer. The cancellation of a deal to acquire certain properties in Venezuela from L.B. Mining and Robert Friedland appears to have had a positive effect on Diamond Fields Resources. The company also canceled the issue of 782,000 special warrants at $3.40 to the group and will return the US$2 million in proceeds held in trust.

Diamond Fields closed up $1.15 at $5.50.

YGC Resources added a dime to close at $1.25 after announcing plans to acquire the Ketza River gold property in the Yukon from Wheaton River Minerals in return for three million shares.

Plans to amalgamate Commonwealth Gold and Toronto-listed Aber Resources, on the basis of three Commonwealth shares to one Aber share, gave both issues a lift. Commonwealth closed up 11 cents at 89 cents while Aber jumped 70 cents to finish at $3.10.

Shareholders of Cream Silver Mines have received a depressing letter from President Frank Lang outlining the company’s failure to receive compensation for expropriated claims on Vancouver Island.

Will this set a precedent for the upcoming compensation decision on Windy Craggy project?