STOCK MARKETS — Diamond, gold players keep western markets

A number of issues posted gains on western markets during the week ended noon, March 3. Trading interest was once again triggered by diamond and gold exploration in the Northwest Territories, as well as by the ongoing gold rush into Venezuela’s Kilometre 88 district.

This flurry of trading was reflected in the Vancouver Stock Exchange resource index, which was up 30.85 points to 818.76 during the week. The composite index gained 29.21 points to 758.89 during the same period. Companies involved in diamond exploration showed plenty of sparkle, and many issues posted gains amid expectations that some drilling results would begin flowing from some of the more advanced properties. Commonwealth Gold, for example, was ahead 15 cents at 94 cents.

A more recent diamond exploration entrant, Nevsun Resources, was up 20 cents to 85 cents. With 1.6 million shares outstanding, the junior professes to have the smallest number of outstanding shares of any company in the Lac de Gras, N.W.T., diamond play. A recent $325,000 private placement will be used to fund a spring program of geophysics and sampling which is expected to provide the first drill targets this June. The junior recently retained John Buckle, manager of Dighem Surveys, as a consultant.

Dryden Resource and Stow Resources each posted gains after announcing plans to amalgamate into an entity known as Leicester Diamond Mines. The amalgamation, if approved in early May, would lead to financing of the Leicester diamond mine, where Stow, Dryden and SouthernEra Resources have an option to earn an 80% interest, in South Africa.

Silverstone Resources, now a Murray Pezim junior, was up a nickel at 50 cents. Trading interest is related to the company’s plans to be involved in Venezuela’s hottest gold district. Pezim has 10 juniors acquiring or trying to acquire concessions in the Kilometre 88 district, the potential of which the “Pez” enthusiastically describes as “the start of another Carlin Trend”. Pezim’s Star Dance Resources is now negotiating with Robert Hunter’s Lumina Investment to acquire a 50% interest in two separate properties totalling 610,000 acres near a recently reported gold discovery by Homestake Mining/Kerr McGee at Goose Lake and Boot Lake, N.W.T. Lumina’s ground now surrounds all of Homestake’s holdings and is in an area of interest to diamond exploration companies. Lumina was up 33 cents at $2.85, while Star Dance lost a penny at 23 cents.

Kalahari Resources, which has been doing more to promote Homestake’s new gold discovery than Homestake, also has a sizable ground position in the region. The issue jumped 63 cents to settle at $2.25.

Venezuelan Goldfields (or Vengold) and International Kengate Ventures are still battling over who has legal rights to the Oro Uno concession in Venezuela. The uncertainty doesn’t appear to be affecting Vengold’s share price, which posted a $1 gain to $11. The junior is continuing to acquire concessions in Venezuela, most recently with Carson Gold. (Speculation is growing that Carson will eventually merge with or be acquired by Vengold.) Don Sheldon’s Bard Silver & Gold was another active issue, up 55 cents at $1.15. The company recently signed an option agreement with U.K.-based Greenwich Resources to explore and develop six gold concessions in the El Callao and Botanamo gold districts of South America’s Guyana Shield. Coral Gold released some encouraging assays from its Crescent Valley property in Nevada, being explored by Amax Gold. The impressive results included 150 ft. grading 0.16 oz. gold per ton (from 620-770 ft.), which includes 65 ft. of 0.3 oz. gold. Two other holes drilled in the Central zone returned 125 ft. and 190 ft., both grading 0.1 oz. gold.

Skyline Gold rebounded to $1.85, a gain of 44 cents from last week. The junior optioned a newly discovered porphyry copper-silver-zinc deposit in northern Mexico. The system is considered similar in geology to the deposits of the Cananea district where historical production is reported as 2.5 million tons copper (with present reserves grading 0.7% copper). Major General Resources was also an active trader, up 13 cents at 48 cents. The junior plans to explore a number of volcanogenic massive sulphide properties in Eastern Canada.