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by Stockwatch Business Reporter

New York spot gold fell $11.40 to $1,326.60 on Wednesday. The TSX Venture Exchange fell 3.31 points to 884.96 while the TSX Gold Index dropped 2.96 points to 199.67. Torex Gold Resources Inc. (TXG) was strong today, adding 33 cents to $12.98 on 1.15 million shares.

Rob McEwen's McEwen Mining Inc. (MUX), down 10 cents to $2.83 on 987,000 shares, plans $10-million of work on its Black Fox project, near Timmins in Northern Ontario. McEwen Mining acquired Black Fox last fall from Primero Mining Corp. (P: $0.29) for $35-million in much needed cash. The plan includes 100,000 metres of drilling, which is now under way. The company hopes to expand the existing resource and it plans closer looks at new targets on what the company calls a "largely underexplored" project with excellent upside potential. (McEwen evidently thinks it can do better than Primero.)

Sylvain Guerard, senior vice-president of exploration, says that Black Fox has all the criteria characteristic of great exploration projects. He lists its prime location in a prolific district, its high gold endowment, the presence of high-grade mineralization, multiple prospective structural trends, as well as various styles of mineralization and host rock types. Mediocre exploration projects usually have the same characteristics, but McEwen Mining is starting work with an existing resource already in hand. At last report, Black Fox held 7.6 million tonnes measured and indicated at 5.01 grams of gold per tonne, with another 1.3 million tonnes inferred at 4.2 grams per tonne, or about 1.4 million ounces in all.

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