STOCK MARKETS — Markets bide time during diamond news lull

With limited news on both the gold and diamond fronts, western markets closed little-changed at the end of our reporting period (Nov. 16).

The Vancouver Stock Exchange composite index edged up just over three points to finish at 1,045.95 while the resource index ticked up 1.76 points, closing at 1,523.93.

Bullion prices also tracked sideways, finishing the period at the US$375-per-oz. level.

Selling pressure on the three owners of the Yamba Lake diamond property in the Northwest Territories abated somewhat while investors await further exploration results.

Mill City Gold is earning a half interest in the property from Alberta-listed Tanqueray Resources and Fibre-Klad Industries which hold 29% and 21% diluted interests, respectively.

The joint venture has released disappointing diamond counts from core sampling from the Sputnik and Sue pipes and is processing samples from a second hole on the Torrie pipe.

Tanqueray closed down a dime at $2.90, Fibre-Klad slipped 40 cents to $2.20 and Mill City fared the worst, dropping 42 cents to close at $1.69. Members of the DHK group also drifted lower amid a vacuum of news. Kettle River Resources lost $1.25 at $6.75 while Dentonia Resources slipped a dime to $3.85 and Alberta-listed Horseshoe Gold Mining dipped a nickel to $3.70.

Kennecott is proceeding with a 5,000-ton bulk sample from the group’s WO claim block in the Northwest Territories and is planning to drill other targets this winter.

A lack of news from BHP’s work on the Kabanga and Kagera concessions in Tanzania, under option from Sutton Resources, has not hurt that issue’s share price.

Sutton closed up $1.63 at a new high of $25.50.

San Fernando Mining also did well, touching a new high of $4.05 before closing up 50 cents at $3.95.

The company is proceeding with exploration work at its La Fortuna property in Mexico where previous work outlined a probable mining resource of about three million tons grading 0.25% copper, 0.16 oz. gold and 1.05 oz. silver per ton. A lack of news from the Tobin Lake joint venture in Saskatchewan has not helped partners Consolidated Pine Channel Gold and Golden Peaks Resources. Pine Channel lost over a dollar to close at $2.09 while Golden Peaks dipped 22 cents to $1.08.

Some weeks ago, the group reported that drilling had intersected kimberlitic material over an undisclosed width. Testing is still under way to determine if this material is kimberlite.

After hitting a new high of $4.80, Bolivar Goldfields pulled back to close up 45 cents at $4.55.

The company is active on four separate concession areas in its Venezuelan state namesake, with eight geologists and up to 70 support personnel. The company reports the discovery of widespread gold anomalies on all the concessions and is in the advanced stages of acquiring additional ground covering more than 11,000 hectares in Bolivar state.

Subject to the positive completion of a due diligence review, Mutual Resources plans to option a 54% interest in the Sewum Tokosea gold concession in Ghana.

Mutual gained 20 cents to close at 95 cents.

Plans to begin exploring the Mission Sub diamond concession in Mali, West Africa, helped Verdstone Resources, which added 24 cents to close at $1.12. Eighteen gem-quality diamonds weighing a total of 824 carats have been recovered downstream from the known diamondiferous pipes on the property and the company believes there is good potential for identifying additional diamond-bearing pipes.