Western markets off slightly; VSE mining index also down — Goldtex, Canadian Mountain up on report of good surface samples in Yemen

The Vancouver Stock Exchange composite index closed down 37.01 points, or 5.3%, to 657.21 over the report period ended Nov. 25, while the mining index was off 36.42 points, or 6.3%, at 540.31. The combined value of the Alberta Stock Exchange dropped 72.04 points, or 3%, to 2,329.32.

Arizona Star Resource managed to pull out of the downward spiral it had been in since optioning a 51% interest in the Aldebaran gold-copper property in northern Chile to Toronto-listed Placer Dome. Arizona Star closed up 38 at $2.25.

The first hole of a 5-hole, 5,000-metre due diligence drilling program at the former-producing Crown diamond mine in South Africa intersected a complex kimberlitic diatreme complex at a downhole depth of 409.6 metres.

That intersection consisted of diatreme facies kimberlite with large rafts of shale. From 599.6 metres to the last reported depth of 787 metres, the hole intersected both diatreme facies and hypabyssal kimberlite, with only minor rafts of shale. The longest sections of hypabyssal kimberlite measure 20 metres (from depths between 647 and 667 metres) and 74 metres (from depths between 713 and 787 metres). Rupert Resources holds the right to earn up to a 75% interest in the sub-surface mineral rights of the mine and up to a half-interest a tailings reprocessing project. The issue remained unchanged at $2.40.

A 123-hole drilling program on soil geochemical anomalies at Borneo Gold s 90%-held Tanah Laut contract of work in South Kalimantan, Indonesia, has identified a saprolite resource of 3.6 million tonnes grading 0.52 gram gold per tonne, equivalent to 60,000 contained ounces. The company is preparing a detailed scoping study to determine what sort of tonnage and grade is required for the project to be economic at today’s gold price. In the meantime, the company is following up on several bedrock gold discoveries.

Borneo was up 10 at $1.35.

The Assistant Deputy Minister of Northern Affairs has overturned an earlier ruling by the Supervising Mining Recorder in favor of Gerle Gold and Toronto-listed SouthernEra Resources. The deputy minister has ordered the reinstatement of the RIM 1-24 and MK 1-15 mineral claims in the Northwest Territories, and their transfer to partners Inukshuk Capital and Toronto-listed Golden Rule Resources.

The claims cover 38,000 acres south of Mountain Province’s 5034 discovery.

Gerle slipped 3 to close at 50.

Steppe Gold Resources remained unchanged at 32 after reporting results from 14 reverse-circulation drill holes into the Kosmurun Upper Zone deposit, south of the Mizek gold deposit in Kazakstan. Among the best results were: 63 metres of 6.1% copper, 3.34 grams gold and 0.19% zinc; 93 metres of 4.7% copper, 2.5 grams gold and 3.2% zinc; 33 metres of 5.6% copper and 2 grams gold; and 51 metres of 2.6% copper, 5.7 grams gold and 7.8% zinc.

Shares in TKO Resources were reinstated for trading after the company complied with an order to change its board of directors and officers of the company. The company has mineral holdings in British Columbia and Nevada, as well as a gas project in Nebraska. The issue was halted at 34 in mid-July.

It closed the report period at 11.

Miranda Industries closed down 7 at 33 on the release of further drilling results from its Leticia gold project in Mexico’s Guerrero state. Highlights from the latest six holes include: 30 ft. of 0.72 gram gold, beginning at a depth of 110 ft. Pacifc Rim Mining, which can earn a 51% interest in the project, was down 15 at $1.05.

Valerie Gold Resources finished at $1.16, up 22. Previous soil sampling in the Manto America area of its Mamatla concession, also in Guerrero state, identified a number of gold-silver-lead anomalies coinciding with an geophysical anomaly. Recent sampling returned values averaging 1.2 grams gold and 67.8 grams silver.