STOCK MARKETS — Voisey Bay play adds pep to western markets

The nickel-copper-cobalt discovery of Toronto-listed Diamond Fields Resources, along the coast of Labrador, has begun to influence both the Vancouver and Alberta markets as a speculative play.

While the Vancouver Stock Exchange composite index remained relatively unchanged at 753.38, the resource index rose 48.70 points to close at 1,264.79 for the report period ended April 18.

In a talk held in Vancouver last week, both Douglas Leishman, mining analyst for Yorkton Securities, and Dr. Roger Morton, professor of economic geology at University of Alberta, suggested the Voisey Bay area has the makings of a major nickel belt.

Little is known of the regional potential for further finds, but companies are scrambling to re-interpret the potential of northeastern Labrador. What makes the area attractive, from an exploration point-of-view, is that little work has been done and Diamond Fields’discovery was literally stumbled upon.

The scope of the Voisey Bay discovery has not unfolded yet. Initial results of an airborne geophysical survey indicate the structure hosting the deposit has a strike length of at least 4.3 miles.

Dr. Morton said the nature of the mineralization is such that geophysics is extremely effective in outlining targets. Exploration tools will also include follow-up geochemical sampling and prospecting for gossanous outcrops.

On a volume exceeding 9.3 million shares, Castle Rock Exploration hit a high of 75 cents before closing at 68 cents, a jump of 33 cents. The company, along with 50-50 partner Pan-Global Enterprises, can acquire a 100% interest in two claim groups, situated in the Voisey Bay and Harp Lake areas. With the acquisition, Castle adds to its 50-to-100% interest held in four other claim blocks. An airborne geophysical survey is expected to begin shortly. Pan-Global holds an additional 100% interest in 1,030 claims and closed up 18 cents to 48 cents.

Trading in Lucero Resource pushed the issue to a high of $1.87 before finishing up 67 cents at $1.57 on more than 2.4 million shares. Lucero holds a 49% interest in 899 claims in the Voisey Bay and Harp Lake districts. International Northair Mines initially held the other 51%, but has since granted NDT Ventures an exclusive right to acquire the entire interest. NDT also acquired an option to earn a 51% interest in 309 mineral claims held by Rupert Resources. The claims were staked on the basis of nickel and copper geochemical highs identified from regional geochemical maps. Rupert closed at $1.56, up 21 cents. NDT is undergoing a reactivation under the VSE’s policies and is expected to resume trading by the end of the month.

On heavy trading of almost 2.4 million shares, International Canalaska jumped 63 cents to close at $1.60. The company holds four claim blocks in the Voisey Bay area, two of which (VBE-1 and VBE-2) are adjacent to Diamond Fields’claim boundary. Columbia Yukon Resources holds an option to earn up to a 70% interest in the two blocks. Canalaska recently awarded an airborne geophysics contract to Dighem and expects initial results by the end of the month. Columbia Yukon has also acquired an option for up to a 70% interest in one claim block, consisting of 2,500 acres, from Yanks Peak Resources and has acquired 100% of 25,570 acres from a staker. Columbia Yukon is seeking re-listing on the Alberta Exchange. Yanks Peak closed at 38 cents, an increase of 12 cents.

The second-largest landholder in the Voisey Bay area is Alberta-listed Absolut Resources, holding 16 claim blocks totalling 203,960 acres. Absolut’s claims were staked to cover magnetic targets and lake bottom sediment geochemical anomalies. An airborne geophysical survey is expected to be completed by the end of April, with a follow-up program of prospecting and sampling slated to begin in June. The junior’s stock climbed as high as $2 before settling at $1.72, up 62 cents on more than 2 million shares.