Diagem leads juniors on western exchange

Vancouver — Canada’s junior exchange managed to stay in bull territory over the week ended Sept. 16 despite recent-profit taking, which prompted the largest 1-day drop in nearly two months. But when the dust had settled, the S&P-TSX Venture Exchange composite index was 6.35 points up, or 0.46%, and closed at 1,368.52.

Diagem International Resource tacked on 11 and finished the week at 38 with 6.8 million shares traded. Diagem recently reported that the first two weeks of commercial mining operations had yielded 378.9 carats of diamonds. During this period, the junior reaped 50 carats per day on four occasions. Diagem is mining the Fazenda Chicoria diamondiferous gravel resource block in the Juina diamond province in Brazil’s Mato Grosso state.

Partners Spider Resources and KWG Resources continued to trade heavily ahead of further drill results from the McFauld’s Lake massive sulphide zone in the James Bay lowlands on Ontario. Most recently the companies reported the discovery of a new copper-enriched sulphide zone in a satellite showing. Shares in KWG closed up 5 to 14 on a volume of just over 5.8 million shares, while Spider ended the day at 12, up a nickel on more than 6.5 million shares traded.

Endeavour Mining Capital tacked on 9 and closed at $3.10 with 6.1 million shares traded. The company invests and partners with aggressive and focused management teams that hold quality mining projects. Endeavour reported a net income of US$8.7 million (or US70 per share, or roughly C97 per share) for the 8-month period ended Aug. 31, 2002.

International Samuel Exploration got a boost from news that the initial drill hole has discovered the first kimberlite pipe on the Churchill West diamond property in Nunavut. Hole 29 tested a geophysical anomaly in the easternmost part of the property and cut kimberlite at a depth of 45 ft. The hole remains in kimberlite at 235 ft. Shares in the company closed at 33, up 3 on a volume of just over 3.4 million.

American Bonanza Gold Mining closed the week up 2 to 34 with 3.3 million shares traded. The company reports that exploration work is scheduled to resume shortly at the Gold Bar property in the Battle Mountain-Eureka mineral belt in central Nevada. A drill rig will be mobilized as soon as possible.

Donner Minerals closed at 23 up a penny on a volume of 2.9 million shares. The company’s main asset is the South Voisey Bay nickel sulphide project in Labrador, where joint-venture partner Falconbridge can earn a half-interest by spending $23 million over five years. The junior also holds a 27% stake in fellow junior Knight Resources, which recently tabled positive results from the West Raglan property in northern Quebec.

Ecstall Mining closed up 6 to 22 with 2.7 million shares traded. At last report, Ecstall had optioned its Otish Mountains diamond claims to Diadem Resources.

Diadem can earn a 100% interest in Ecstall’s 608 staked diamond claims, which cover 318 sq. km of prospective ground. Diadem remained flat at 11 with 185,000 shares traded. Ecstall also holds numerous precious metal properties in British Columbia.