Diamonds drive junior market higher

Vancouver — Canada’s junior exchange inched forward over the holiday-shortened week ended June 30 as investors found a renewed appetite for diamond explorers. The S&P-TSX Venture Exchange composite index tacked on 3.74 points, or 0.32% of its value, and closed at 1,103.89.

The discovery, by Toronto-listed Ashton Mining of Canada, of a large stone from the Renard 65 kimberlite body on the Foxtrot property in Quebec propelled shares in other regional diamond explorers. Majescor Resources added 16 to close at 41 on a volume of just over 1.8 million shares. The junior, which recently completed a $900,000 financing, holds a stake in six projects in Quebec, including the Portage property, northwest of Ashton’s find.

Another major landholder, Montello Resources, doubled in value to 6 on nearly 1.7 million shares traded. The company holds a 50-50 joint venture with Oasis Diamond Exploration on a 460-sq.-km property in the Otish Mountains, less than 25 km east of Ashton’s discovery. Oasis ended the week at 6, up 1 with 267,000 shares changing hands.

Diamond explorer Shear Minerals closed out the week at $1.40, up 18 on nearly 1.1 million shares traded. Investors have bid up the stock over the past couple of weeks following news that new kimberlites have been discovered at the Churchill diamond project north of Rankin Inlet in eastern Nunavut.

Diamonds North Resources tacked on 5 and closed the week at 80, with 494,000 shares traded. The junior inked a deal with Toronto-listed Teck Cominco, paving the way for the major to earn up to a 70% stake in the Blue Ice diamond property on Victoria Island in Nunavut.

Investors snapped up shares in Cassidy Gold following the release of results from a 519-metre program on the Koe Koe South zone on the Kouroussa property in Guinea, West Africa. Hole 3 targeted the EW vein, yielding 7.07 grams gold per tonne over 1.9 metres. Moving 250-550 metres south, holes 4 through 6 tested the SW vein, yielding up to 100.9 grams gold over 3.52 metres in hole 5. Stock in the junior jumped 10, to 39, on a volume of 859,200 shares.

Argent Resources added 3 to close the week at 18, with just under 1.8 million shares changing hands. The company has kicked off an exploration program at its Iron Lake copper-gold project, in the Cariboo region of British Columbia. Argent can earn up to a 70% interest in the property from fellow junior Eastfield Resources.

Golden Goose Resources ended the week at 18, up 1, with 1.5 million shares crossing the floor. The junior holds the Magino mine property, near Wawa, Ont., where the total measured resource stands at 5.8 million tons grading 0.09 oz gold per ton.

Making a nice percentage move, Noront Resources closed at 19, up 11, with 1.1 million shares traded. The company has been advised by its joint-venture partner, Alto Ventures, that Fury Explorations has completed a 4-hole, 864-metre drill program on the Windfall Lake property in Quebec’s Urban Twp. Fury has entered into an agreement with Alto whereby Fury can acquire up to a 75% interest in Alto’s half-interest in this project. Highlights of recent drilling include 22.85 metres averaging 10.25 grams gold per tonne in hole Fur-3. Alto ended the week up a penny, at 11, on 130,000 shares traded, while Fury ended the week unchanged at 52 on light volume.