Western markets lacklustre

Canada’s junior exchange closed the week ended Feb. 18 in lacklustre fashion. The S&P-TSX Venture Exchange composite index lost 6.15 points, or 0.56% of its value, to close at 1,088.33.

Investors continued to be enamoured of the diamond play on the Melville Peninsula in Nunavut. Northern Empire Minerals and Stornoway Ventures were among the most actively traded issues. The partners recently acquired more ground in the vicinity of their Aviat project, 850 km northwest of the territorial capital of Iqaluit. So far, two diamond-bearing kimberlites have been identified at Aviat. Shares in Northern Empire tacked on 27 and closed at $1.07 on a volume of 2.3 million, while stock in Stornoway jumped 53 to $1.34 on 7.5 million shares.

Diagem International added 4 to its value and closed at 30 with 4.4 million shares traded. The company holds several projects in the Juina diamond province of Mato Grosso state, Brazil, and is processing diamonds from gravel deposits at a pilot plant. The junior recently raised $930,000 from the exercise of 3.5 million warrants priced at 26 per share.

American Bonanza Gold Mines found a penny and closed at 33 on a volume of 3.3 million shares. Toronto-listed Goldcorp recently took a 10.4% stake in the junior by becoming the largest buyer of an 18.3-million-unit private placement priced at 22 per unit. A unit holds one share and half a warrant, which is exercisable at 28 for a year.

Pacific Ridge Exploration lost 2 and closed the week at 6 with 1.7 million shares traded. The junior holds the 42-sq.-km Fyre Lake project, immediately south of the True North emerald discovery in the Finlayson Lake district of the Yukon.

Investors sold off shares in Mustang Minerals. The junior lost 26 and finished the week at 64 on the swapping of 1.6 million shares. The company is in the midst of a drill program over the McAra massive sulphide property, 120 km south of Timmins, Ont.

Sultan Minerals closed up a nickel to 25 on a volume of 1.3 million shares. Kinross Gold, Sultan’s partner on the Kena project, near Nelson, B.C., recently completed a 5,700-metre drill program. All 33 holes cut (mainly low-grade) gold mineralization.

Wolfden Resources added 42 to its value and closed at $2.02, with 1.2 million shares traded. Earlier this month, the company launched a drill program on the East Bay gold property in Ontario’s Red Lake camp.

Goldminco ended the week at 15, up a penny with 1.1 million shares changing hands. The company recently picked up 2,516 sq. km of promising ground in Australia as a result of an agreement with Placer Dome through various subsidiaries. The agreement states that Goldminco is entitled to any projects of which Placer Dome Asia Pacific divests itself. The junior also gets carried through to development and reimbursed for all its exploration costs on any joint-venture deal it contributes. The deal covers Southeast Asia, China, Australia and New Zealand.