Diamond find by DHK fuels frenzy of trading

Western markets exploded in a frenzy of buying following the release of exploration results from the WO property in the Lac de Gras area of the Northwest Territories.

The Vancouver Stock Exchange composite index jumped 16 points to 856.27 while the resource index added 15.79 points to close at 947.35 for the week ended April 20.

The DHK group reported the discovery of 39 microdiamonds and 15 macrodiamonds from three kimberlite core samples totaling 89.4 kg.

Although full details of the results, including size and quality (gem or industrial) were not released, investors drew comparisons between this find and that of Dia Met Minerals/BHP, north of WO.

With Dia Met’s market capitalization placing a $1.9-billion value on the Point Lake property, some analysts see plenty of room for appreciation in the DHK group if the recent discovery pans out.

Kennecott is operating the project while Kettle River, Dentonia Resources and ASE-listed Horseshoe Gold Mining each hold an 11.7% carried interest. Kettle River hit a high of $10.38 on the news before settling at $8.63 for a gain of $4.93 on the week.

Dentonia and Horseshoe Gold both finished at $4.90 for gains of $3 and $2.60, respectively.

Commonwealth Gold, which holds a 5% working interest in the property, gained 26 cents at $1.30. TSE-listed SouthernEra Resources and Aber Resources, each of which holds a 10% working interest, also reported large gains, with Aber finishing up $1.25 at $3.70 and SouthernEra up $1.12 at $6.12. The ATW group, which holds a large ground position west of WO, benefited from the market action.

Kennecott is earning a 65% interest in the property while Almaden Resources and Williams Creek Explorations each hold a 14% carried interest and ASE-listed Troymin Resources has a 7% carried interest.

Almaden touched a high of $3.70 before finishing up $1.15 at $3.15 while Williams Creek jumped 80 cents to $2.25 and Troymin added 27 cents at 85 cents.

Numerous other diamond explorers active in the Northwest Territories experienced strong gains, including Winspear Resources, up 65 cents at $2; Winslow Gold, up 64 cents at $1.30; Island-Arc Resources, up 24 cents at $1.14; and Lucero Resource, with a 31 cents gain at 74 cents. Albert Applegath’s Kalahari Resources remains top contender for the “greatest number of news releases award.” The company, which holds an extensive land position in the Northwest Territories, finished up 35 cents at $3. New Canamin Resources released additional assay results from its new East zone discovery at the Huckleberry property in British Columbia, pushing the issue to a high of $2.04 before closing at $1.90 for a gain of 25 cents. The company plans to begin a second phase of drilling on the new zone before month’s end.

Trading activity in Attwood Gold heated up with the issue posting a gain of 86 cents at $1.35. The shell company announced it is doing a financing but, although it is actively looking, has yet to enter a deal.

Continental Pacific Resources optioned to Minnova a 60% interest in two of its reported 21 discoveries in the Anialik-High lake mineral belts in the Northwest Territories. The company also plans to explore its 100%-owned ground for large-tonnage, polymetallic deposits as well as shear-related gold deposits. Continental gained 30 cents to close at $1.50.

Additional assay results from the Prairie Creek project, including a 6.6-metre intersection grading 13.7% lead, 20.4% zinc and 147 grams silver per tonne, did little to help San Andreas Resources, which slipped 10 cents to finish at $2. The company is drilling off a stratabound massive sulphide deposit about 500 km west of Yellowknife, N.W.T.