THE STOCK MARKETS — Resource index edges up despite jump in

Western markets traded sideways during the week ended March 16 despite a jump in the price of gold to US$385 per oz. The Vancouver Stock Exchange resource index edged up 3.41 points to 1,751.03 while the composite index added 11.63 points to close at 1,137.75.

Joint-venture partners War Eagle Mining and Great Western Gold both hit new highs before being halted, pending an announcement. War Eagle was stopped at $7, up $1.38, while Great Western was stopped at $6.88 for a gain of $1.25. Investors have been waiting for the companies to release results from the analysis of kimberlite intersected on their Candle Lake joint venture in Saskatchewan. Rumor has it that the core contains diamonds.

This rumor helped Orcana Resources and Morgain Minerals, which announced they had staked 16 claim blocks immediately north and northeast of the Candle Lake kimberlite discoveries. Both issues gained ground, with Morgain adding 11cents to 65cents and Orcana up 23cents to $1.38

Crystallex International did well, adding $1.25 to close to $7.88. The company has completed the second option payment for three concessions in the Kilometre 88 greenstone belt in Venezuela.

Crystallex also reports that the startup of a 650-ton-per-day leach facility at its Albino joint venture with Eurus Resources is on track for a July startup. Gold production is forecast at 80,000 oz. during the first year of operation at a cash cost of less than US$75 per oz. Eurus closed up 12cents to 92cents.

Trading in Nu-Dawn Resources picked up, with more than 3.4 million shares changing hands. This helped the issue post an 11cents gain to 30cents. Nu-Dawn has completed a 3,000-mile, low-level magnetic survey over the Fort a la Corne area of Saskatchewan and is now processing the data. Diamond Fields Resources completed a previously announced brokered private placement of 3 million units at $5 each for gross proceeds of $15 million. The company, which finished up $2.38 to $7.63, is in the process of acquiring two producing kimberlite diamond mines in South Africa.

In Mexico, drilling on the Guadalupe property owned by Northern Crown Mines continues to confirm open-pit, heap-leach potential. Recent results include a 150-ft. intersection grading 0.069 oz. gold per ton and a 128-ft. intersection grading 0.033 oz. Northern Crown closed up 20cents at $2.05. Cumberland Resources managed to miss the general downtrend in resource issues during the past few weeks, finishing up 25cents at $2.30. The company is planning extensive drilling and exploration for the spring on its gold property interests in the Northwest Territories.

The purchase of the residual interest in the Fish Lake copper-gold project in British Columbia by Taseko Mines certainly has not hurt the company. Taseko, which is looking for a buyer for the project, hit a new high of $19.50 before settling at $19 for a gain of $3.13.

Management at Silver Standard Resources is at a loss to explain the issue’s 70cents jump to $3.50. The company’s only active project is at its Diask Syndicate joint venture with Carlin Resources and Lansdowne Minerals in southern Saskatchewan. Carlin posted a 9cents gain to 60cents while Lansdowne added 2cents to close at 70cents.

The cancellation of a brokered private placement of 2.5 million units at $2 did not seem to hurt American Bullion Minerals, which finished up 70cents to $2.30. The company announced plans to complete a 500,000-unit private placement at $1.28 instead.

Proceeds from the new placement, totaling $640,000, will be used to complete an independent engineering evaluation of Bullion’s Red Chris porphyry copper-gold project in British Columbia, as well as cover property payments of $243,000.