WESTERN MARKETS — Composite makes steady gains on VSE

The Vancouver Stock Exchange composite index continued its bullish charge during the report period ended Oct. 5, rising 5.73 points, or 1.4%, to finish the week at 422.63. The mining index broke the 300 barrier, adding 8.99 points, or 3.05%, to its value and closed at 303.63.

Meanwhile the combined value of the Alberta Stock Exchange tacked on 44.74 points, or 1.58%, to close at 2,872.75.

Lucas Lundin-run Atacama Minerals jumped 22 cents to close at 67 cents. The junior decided to proceed with financing for development of the Aguas Blancas iodine heap-leach project in northern Chile. Capital costs are pegged at US$27 million and initial production is expected to top 1,267 tonnes of iodine per year. Construction will likely get under way in the first quarter of 2000.

Alberta-listed Valdez Gold tacked on 16 cents to close at 70 cents. The company has identified low-grade gold mineralization at the Los Jarros prospect on its Gaby property in Chihuahua state, Mexico. Valdez is preparing a 1,000-metre diamond drill program to test geological controls to a vertical depth of about 100 metres.

Winspear Resources lost 11 cents to close at $2.48. The company recently inked a deal for a special warrant financing worth $14 million. Proceeds will go toward its 67.76%-owned Snap Lake diamond project in the Northwest Territories. Toronto-listed Aber Resources holds the remaining interest.

Meanwhile, Arizona Star Resource has been rising with the gold tide. The stock closed the report period at $1.43, up 29 cents. Arizona Star’s main asset is the Cerro Casale gold deposit on the Aldebaran property in Chile, which is pegged at 1.1 billion tonnes grading 0.71 gram gold and 0.26% copper. Once vested, Toronto-listed Placer Dome will hold a 51% interest.

Toronto-listed Bema Gold and Arizona Star will retain a 24% and a 25% interest, respectively.

Polymet Mining jumped 21 cents to close at $1.89. The company initiated an ore reserve drill program on its NorthMet polymetallic project in Minnesota and completed its first environmental surveys.

Alberta-listed Paramount Ventures & Finance and joint-venture partner Canabrava Diamond started production of the alluvial diamond deposits the Rio do Sono property in Brazil. The 40-sq.-km property has been mined by local miners for more than 150 years. Paramount closed at 63 cents, up 19 cents, while Canabrava added 14 cents to close at 89 cents.

Hyperion Resources closed at 17 cents, up 2 cents. The company launched a second phase of exploration on its Holguin property in Cuba. Plans call for geophysics and diamond drilling.