STOCK MARKETS — Diamond issues add sparkle to western

Western markets shook off the winter blues over the report period ended March 28, with the resource index adding more than 40 points to finish at 1,152.37.

The composite index followed with a more modest gain of 10.78 points to close at 717.15.

Much of the market action is focused on selected diamond issues, with Mountain Province Mining head-and-shoulders above the crowd. The issue traded more than 9.2 million shares, touching a high of $3.30 before slipping back to finish unchanged at $2.95.

Analysis of core from the kimberlite discovery on the company’s half-owned AK property in the Northwest Territories yielded 176 macrodiamonds and 810 micros from 63.3 kg of core. The AK joint venture plans to conduct further delineation drilling on the discovery pipe prior to beginning a bulk-sampling program. Drilling is also planned on other targets.

Alberta-listed Glenmore Highlands, which holds a 40% interest in the property, traded as high as $3.30 before closing up 40 at $3. The remaining 10% is held by Camphor Ventures, which added 20 to finish at $2. Tradewinds Resources exploded on the upside, rocketing to a high of $1.86 on more than 2 million shares before settling at $1.49 for a gain of 94. Preliminary analysis of core from the company’s Drybones Bay kimberlite discovery near Yellowknife, N.W.T., confirms the presence of micro and macrodiamonds. Buying interest in the issue may also have been helped by a reference to Tradewinds in an investment newsletter out of the U.S. Joint-venture partners Avance International and Major General Resources, which are exploring a property nearby, received a boost from Tradewind’s announcement. Major General traded as high as 56 before finishing up 2 at 46, while Avance jumped 14 to 39.

The companies have identified five magnetic anomalies on their property. South Atlantic Diamonds added a dime at 42 after announcing it had identified 33 kimberlite targets on its ground position in Santo Antonio Valley, Brazil. The valley has produced several large diamonds from river gravels, including the fifth-largest diamond in the world at 727 carats. Great Western Gold added 30 to close at $1.32 after announcing surface sampling results from its property in Mexico. The sampling returned an average grade of 0.31 oz. gold per ton over an area measuring 900 by 200 ft. A 5-hole program will further test the gold mineralization, which is hosted in a series of randomly oriented, closely spaced quartz veins and veinlets. Plans to acquire a South African diamond exploration companyin return for 14 million shares gave Amarado Resources a 15 boost to 99. Anthony Ransom recently joined the company as president after resigning his position as vice-president of exploration at Homestake Mining.

International Taurus Resources gained 32 to close at $2.12 on rumors of additional gold-mineralized intersections at its Taurus mine in northern British Columbia. Under a joint venture, New York-listed Cyprus Amax Minerals is drilling at the property in order to test its bulk-tonnage potential. Cusac Industries benefited from the action, adding 35 at $1.35. Cyprus is earning a half interest in the northern portion of the company’s property holdings in the area.

David Rovig’s Brimstone Gold edged up a nickel to close at 68 after completing the previously announced acquisition of Kirtley Creek Mines. Brimstone expects placer production at the Kirtley Creek mine near Salmon, Idaho, to begin in late April, and it has optioned a 51% interest in the property’s hardrock rights to Cominco. An initial program of at least six holes will get under way in April to test a known hardrock target.