STOCK MARKETS — Western markets hot as gems return to favor

The Vancouver Stock Exchange set new records for volume and value during the first quarter, with 2.2 billion shares traded, representing a value of $2.5 billion.

Trading during the report period ended April 2 continued apace, pushing the composite index up 63.41 points to 1,143.96 and the resource index up more than 100 points, to 1,964.

Alberta-listed Bre-X Minerals continued to rebound, adding $12 to finish at $156 amid buy recommendations from several mining analysts.

Investors also seem to be developing a renewed interest in diamond issues.

Archangel Diamond leapt $1.82 to $3.70 after releasing results from drilling on its Verkhotina project in northwestern Russia. A total of 183 diamonds, including 31 macros, were recovered from 85.41 kg of drill core.

The company plans to extract a 10-tonne bulk sample from the pipe, and will drill-test several anomalies.

Joint-venture partners Mountain Province Mining, Camphor Ventures and Alberta-listed Glenmore Highlands also appeared to benefit from an increased interest in diamonds.

The companies hold 50%, 10% and 40% interests, respectively, in the Northwest Territories’ AK diamond property. Mountain Province gained 88 cents to close at $8.75, Camphor edged up 55 cents to $4.95 and Glenmore added 50 cents to close at $5.75.

NDU Resources gained 77 cents and touched a high of $2.50 before settling at $2.27. The company is seeking financing for a drill program on its Marg deposit in the Yukon. The Marg contains a drill-indicated resource of 2.9 million tonnes grading 1.62% copper, 2.25% lead, 4.17% zinc, 55.9 grams silver and 0.89 gram gold per tonne.

Argentina Gold’s plans for a 2-million-share private placement at $4.50 per share were well-received by the market. The issue closed at $5, up 55 cents. The company plans to use the funds for work programs on its Argentine properties.

Consolidated Silver Tusk Mines closed at $3, up $1.44, after releasing sampling results from a property on the Indonesian island of Sumatra. Grab sample values from an underground stope ranged up to 873 grams gold and 1,900 grams silver.

The acquisition of a property package in Indonesia helped Pacific Rim Mining close at $1.30 for a gain of 21 cents.

Colossal Resources expects to start processing cobalt slag at its project in Zambia in late April. Production for the first year is projected at 500 tonnes. Colossal added $1.63 to close at $12.

Joint-venture partners Spokane Resources and Ivory Oils & Minerals report the ultramafic dyke discovered last year on their Tasiuyak Bay property in Labrador has been identified as a sulphide-bearing troctolite structure similar to that hosting Diamond Fields’ rich Voisey’s Bay deposit.

Spokane tacked on 20 cents to close at 90 cents, while Ivory edged up a nickel to 85 cents.

Freeport Resources closed at $1.10, down 35 cents, after joint-venture partner Cartaway Resources reported that drilling on the Cabot Lake North property in Labrador failed to return significant results.

Cartaway, which is planning to drill other Labrador prospects, added 9 cents to close at $2.

Promotion by a U.S.-based newsletter helped Alberta-listed Troymin Resources touch a new high of $1.50 before settling at $1.22, up 13 cents.

Consolidated Brenzac Development put in a strong performance, adding 60 cents to close at $3.40. The company recently completed a 3-million-unit issue at $2.35 per unit, which it plans to use in Kalimantan, Indonesia.

A private placement of 1 million special warrants at $4.15 each will provide Expatriate Resources with exploration funds for use on its Finlayson Lake properties in the Yukon. Buyers pushed the issue to a high of $5.25 before it settled at $4.75, a gain of 35 cents.