STOCK MARKETS — DHK sparkles as investors await WO drill

Despite a leveling of bullion at the US$353 level, Western markets continued their rapid ascent, with the Vancouver Stock Exchange composite index up over 34 points at 918.56 and the resource index jumping more than 50 points to close the week ended May 5 at 1,063.61.

Members of the DHK group continued to gain ground while investors await additional results from drilling on the WO claims in the Lac de Gras area of the Northwest Territories. The first three holes returned 15 macro and 39 micro diamonds from 89.4 kg of core and results from a fourth, deeper hole are expected shortly.

Dentonia Resources, Kettle River Resources and Alberta-listed Horseshoe Gold Mining each have a 11.7% carried interest in the property while Kennecott is earning the balance along with TSE listed Aber Resources and SouthernEra Resources (each with 10%) and Commonwealth Gold (with a 5% working interest). Dentonia finished up 75 cents at $7.63, Kettle River jumped $3.12 to $15.25 and Horseshoe Gold added 75 cents to close at $7.88.

Buying in the group was helped along by comments from Pacific International analysts John Kaiser and Andrew Muir who recommended the three stocks as an alternative to Lytton Minerals.

Lytton recently announced the recovery of six macro and 38 micro diamonds from 208 kg of core from a kimberlite pipe on their ground near Ranch Lake, N.W.T.

Calling the results disappointing, Kaiser and Muir recommended avoiding Lytton at prices above $3 and suggested the DHK group as an alternative to Lytton for shareholders seeking to switch their holdings.

Lytton stock took it on the chin, hitting a low of $4 before recovering to $4.50 for a loss of $1.75.

Glowing reports of the diamond potential of its exploration concessions in the Republic of Mali, West Africa, helped boost Mink Minerals $1 to $2.50. Mink reports that past findings on the property include large-size diamonds (mostly from alluvial placers), with the biggest weighing 232.7 carats. St. Philips Resources continued its comeback from the $1 level, gaining 85 cents on the week to close at $2.85.

St. Philips and 60% partner El Condor Resources plan to spend about $1 million this year on their South Kemess copper-gold project in north-central British Columbia.

El Condor remained little-changed, gaining a dime to close at $3.60. South Atlantic Ventures is seeking joint-venture partners for a recently staked ground position around BHP Mineral’s Spyder Lake gold property. The company reports that BHP is rumored to have made a significant gold discovery at Spyder Lake.

South Atlantic closed up 10 cents at 74 cents.

With exploration funds now in hand, Jacqueline Gold expects to start drilling on its San Lazarus property, in New Mexico, within the next few weeks. The drilling will test two previous holes which reportedly intersected 120 ft. grading 0.23 oz. gold per ton and 15 ft. grading 0.66 oz. gold. The program includes a further 20 step-out holes.

The issue finished up 37 cents at 72 cents.

Carson Gold gained 45 cents to close at $4.30. The company recently completed a previously announced private placement, netting more than $5.9 million. Carson is now in the process of mobilizing a geologic exploration crew to begin initial geochemical sampling and ground geophysics on the Morawana concession in the Kilometre 88 region of Venezuela.

Teck’s decision not to exercise an option to buy 325,000 shares of Northern Crown helped push the issue down 60 cents to the 85 cents level. Northern Crown is planning a $500,000 private placement to finance further drilling on its Guadalupe gold project as well as the acquisition of three additional gold properties in Mexico.

Despite generally weak copper markets, Chase Resource managed to add 45 cents to close at $4. The company reports that an induced polarization survey has identified a large anomaly to the west of the company’s Taysan copper-gold project in the Philippines. Chase also announced it is reviewing opportunities to expand its range of activities in the Philippines.