Western markets — Cross Lake generates excitement from Timmins drill results

Over the shortened report period ended Dec. 18, the Vancouver Stock Exchange composite index gained 11.26 points, or 1.9%, to close at 595.45.

The mining index was also up, rising 13.14 points, or 2.7%, to close at 488.84. The combined value of the Alberta Stock Exchange remained steady, edging up only 0.86 points, or 0.04%, to close at 2173.12.

Mountain Province Mining jumped 49cents to close at $4.89. The company received caustic fusion analysis results from additional drill holes in the Tuzo and Hearne kimberlite pipes on the AK and CJ claims in the Northwest Territories. A 168-kg kimberlite sample taken from the Hearne pipe produced 439 diamonds, 50 of which were classified as macrodiamonds. From the Tuzo pipe, a 154 kg sample yielded 294 diamonds, 19 of which were macros. The AK and CJ claims are held 90% by Mountain Province and 10% by Camphor Ventures.

Camphor gained 29cents to close at $1.79. Monopros, the Canadian exploration arm of De Beers, has the right to earn up to a 60% interest in the properties.

Mansfield Minerals rose 30cents to close at $1.25. The Cerro Samenta title dispute was settled in Mansfield’s favor; the judge stated that the Sept. 5, 1996 ruling regarding the location of the reference point known as Cerro Samenta was valid and rejected Corriente Resources’ appeal against the decision. The Cerro Samenta project is regarded as a highly prospective Chilean-style copper porphyry property. Situated in northwestern Argentina, it lies in the Puna region, 300 km northwest of Salta.

Alberta-listed Sur American was up 11cents to close at $1.01. The company stated that a local landowner discovered a zone of gold mineralization in volcanic agglomerates, 200 metres south of the original Mina Rica southern boundary in western Columbia. Trench sampling indicates an average grade of 2.2 grams gold per tonne over 20 metres. Sur American, which owns the exploration and exploitation rights in the area, believes this new zone will extend the north-south dimension of the Mina Rica mineralization to 1,400 metres.

Cross Lake Minerals extended the Copper zone on its Sheraton-Timmins property, situated 43 km east of Timmins, Ont. Highlights from intersections include; 3 metres grading 2.21% copper and 8.1 grams silver per tonne in hole 25; 47.5 metres grading 1.07% copper and 6.3 grams silver (including a 9-metre intercept assaying 3.05% copper and 11.0 grams silver) in hole 29; 19 metres grading 1.38% copper and 11.2 grams silver (including a 7.7-metre interval assaying 2.42% copper and 14 grams silver) in hole 31. The company intends to continue drilling into the new year. Cross Lake’s issues rose 10cents to close at $1.83.

Alberta-listed Montello Resources received the first option payment of $1.5 million from Alberta-listed Redwood Resources. The funds will be used to drill test geophysical targets that may represent kimberlite pipes on the Jazz West prospect in the Buffalo Hills region of northern Alberta. Montello has identified 18 highly prospective magnetic anomalies in the eastern half of the project area. Drilling is expected to commence during the first week of January. Montello lost 1cents to close at 59cents, while Redwood dropped 8cents to finish at $1.35.

Alberta-listed South Pacific Resources closed up 5cents to 25cents. The company announced that Toronto-listed Teck and Australian-listed MM Gold, will proceed with a joint venture over the company’s Mirih project in Indonesia. South Pacific received an initial option payment of US$100,000 from Teck. The junior currently holds a 90% interest in the project, which covers 175,000 ha in Kalimantan.