Diamonds, gold add glitter to junior exchange

Vancouver — Canada’s junior exchange rallied during the week ended May 6. The S&P-TSX Venture Exchange composite index tacked on 25.05 points, or 2.4% of its value, to close at 1,055.74.

Shares of Spider Resources continued to trade at a hectic pace with 4.2 million shares changing hands. The junior reported drill results from the Spider 3 massive sulphide project in the James Bay Lowlands of Ontario. Hole 6 drilled, below the previously reported massive sulphides in the first two holes, cut 2.9% copper and 0.45% zinc over 5.6 metres, as well as 5.4% zinc and 0.3% copper over 9.65 metres. Holes 3 and 4, drilled 100 metres to the northeast, cut 5.25% zinc and 0.58% copper over 3.95 metres and 2.41% zinc and 0.495% copper over 8.7 metres, respectively. Spider ended the week up a penny to 12.

Investors snapped up shares in American Bonanza Gold Mining following news the junior had hit high grades in the southern portion of the D zone on the Copperstone project in Arizona. Forty-two channel samples were collected from face and rib exposures during the mining of eight rounds covering 80 linear feet. The samples returned values of up to 11.5 oz. gold per ton, the average grade being 1.2 oz. gold. Shares in the junior jumped 5 and closed at 27 on a volume of 2.97 million.

New Shoshoni Ventures closed at 66, up 11 with 1.5 million shares traded. Investors are awaiting initial results from a 3-hole program over the DB-2 kimberlite, which is near the Drybones Bay kimberlite in the Northwest Territories.

Shear Minerals tacked on 10 and finished the week at 54 with 1.5 million shares traded. The company and Northern Empire Minerals reported that their minority partner in the Churchill diamond project, Hunter Exploration Group, had sold all its diamond interests, except for a royalty stake, to BHP Diamonds for $3 million. Shear holds a vested 51% interest and is operator of the Churchill project; Hunter holds the remaining 49% participating interest. Northern Empire has an option to earn into a 35% interest at Churchill by carrying Hunter for $750,000 in exploration expenditures. Shear and Northern Empire have rights of first refusal in respect of the sale by Hunter of any of its interests in the Churchill diamond project on the same terms and conditions offered by a third party. Shear and Northern Empire have 30 days in which to exercise that refusal. The Churchill project is in Keewatin, Nunavut. Shares of Northern Empire ended the week at $1.42, up 27.

GGL Diamond closed the week flat at 33 with 1.29 million shares changing hands. Indian and Northern Affairs Canada upheld a decision made by the supervising mining recorder in May 1996 and awarded the Doyle Lake, LA 26-30 and Easy 1, 2, and 3 mineral claims to GGL Diamond and Toronto-listed SouthernEra Resources. The claims are in the Northwest Territories.

Aquiline Resources added 2 to its value and closed at 25 with 1.22 million shares crossing the floor. The company has increased the size of its previously announced non-brokered private placement to 1.8 million units priced at 25 each, for total proceeds of $450,000. The money will be applied to the Calcatreu gold project in Argentina.