STOCK MARKETS — Resource index on VSE surges to record

With gold holding on to gains, and diamond stocks generally steady, the Vancouver Stock Exchange resource index continued its upward sprint, finishing the week ended May 25 up more than 70 points at a record high of 1,183.03.

The composite index followed suit, also closing at a record high, up almost 30 points at 960.33.

After backing off to the US$373-per-oz. level, bullion managed to rebound to US$380 confounding naysayers while adding further encouragement to gold bugs. Golden News Resources continued its run, hitting a high of $2.53 before closing up 81 cents at $2.41. The company recently completed an agreement to unitize more than 900,000 acres of prospective diamond property in the Fort a la Corne area of Saskatchewan with joint-venture partner Swannell Minerals. Swannell finished up a dime at 75 cents.

Golden News is also investigating property acquisitions in Argentina, Chile, Mexico and the Philippines.

A move by Prime Equities International to sell its 2.53 million shares of Adrian Resources appeared to help both companies. Adrian jumped more than $1 to close at $2.30 while Prime added 75 cents to finish at $3.05. Adrian also announced the acquisition of more than 700 square km of exploration ground surrounding its Petaquilla property in Panama. The land package includes old Spanish gold-mining operations dating back to the early 17th century.

Venezuelan Goldfields made VSE history with the completion of the largest financing ever seen on the Exchange. The company closed a private placement of special warrants equivalent to 3.5 million shares at $12 each, raising a total of $42 million.

The company plans to use the funds to complete the acquisition of the Oro Uno concession as well as to explore and develop its other properties in Venezuela. The issue finished the week down 88 cents at $12.25. Canarc Resources is raising $5.4 million through a private placement of special warrants at $2.70 each. The warrants are convertible into one share and one-half share purchase warrant. The company plans to use the funds to explore and acquire gold properties in Venezuela, Suriname and French Guiana and to perform further work on its Polaris Taku gold property in northwestern British Columbia. Canarc finished up 15 cents at $2.85.

With western markets running hot, other companies announced financing plans, including Eldorado which recently negotiated a brokered private placement for up to three million units at $2.35 per unit (a unit consisting of one share and half of a share purchase warrant).

The company plans to use the proceeds of the placement to place its La Colorada mine in Mexico into production and to do further work on two of its other Mexican projects. Eldorado finished up 35 cents at $3. New Canamin Resources hopes to raise $5 million through the sale of up to 2.8 million special warrants at $1.75 each. Proceeds from the proposed private placement will be used to fund additional exploration and development at the company’s Huckleberry property in British Columbia. New Canamin finished the week unchanged at $2.05.

Three diamond prospects in Saskatchewan owned by Golden Peaks Resources will form part of a joint venture with Consolidated Pine Channel Gold. Golden Peaks added 50 cents to close $3.40 while Consolidated Pine Channel remained level at $7.63.

Key players in the WO diamond claims in the Northwest Territories, including Dentonia Resources, Kettle River Resources and ASE-listed Horseshoe Gold Mining, all regained lost ground during the period as investors awaited additional news. Dentonia gained 75 cents at $7.50, Kettle River added 40 cents to close at $3.80 and Horseshoe edged up 50 cents at $7.38. Diamond Fields Resources, which is in the process of reviewing and acquiring diamond concessions in Namibia, Africa, hit a new high of $9.75 before settling up $2.25 at $9.63. A rumor on the street has it that Diamond Fields will also be teaming up with Robert Hunter’s Lumina Investments on a diamond exploration venture in Saskatchewan.