STOCK MARKETS — VSE resource index jumps on gold, diamond

Spurred by both gold and diamond issues, the Vancouver Stock Exchange resource index jumped more than 66 points to close at 1,013.45 while the composite index finished up 27.53 points at 883.80.

Gold managed to shine during the week ended April 27, rising more than US$10 to the US$350-per-oz. level. Market-watchers tied the move to a number of factors, including financier George Soros’ purchase of a 9.9% share of Newmont Mining and a rumored, corresponding purchase of gold call options by the seller of the Newmont shares, Sir James Goldsmith. Analysts explained gold’s move by citing shaky confidence in the U.S. dollar because of President Clinton’s economic policies as well as technical factors. With investors flush with profits from recent diamond speculation, gold exploration stocks could be in for a bull market if the yellow metal remains on the uptrend.

Trading was reinstated in Venezuelan Goldfields and International Kengate Resources after an extended halt pending company announcements. Venezuelan announced plans to raise up to $42 million through a private placement at $12 per share. The company also plans to acquire the Oro Uno gold concession in the Kilometre 88 region of Venezuela, settling an outstanding dispute over the ownership of the property.

VenGold closed at $13.63, up $1.25 from its last trade prior to the halt. International Kengate, which will receive $4 million in cash, 720,000 shares of VenGold and 100% ownership of the Romina concession to the north, lost 35 cents from its pre-halt close to finish at $1.45.

Partners Kettle River Resources, Dentonia Resources and Alberta Stock Exchange-listed Horseshoe Gold Mining all gained ground, following up last week’s release of exploration results from the WO property in the Northwest Territories. Each company holds an 11.7% carried interest in the property. Unconfirmed rumors regarding a takeover of the companies may be responsible for the increases, with Kettle River gaining $3.50 at $12.13, Dentonia up $1.97 at $6.87 and Horseshoe up $2.23 at $7.13.

Kennecott, operator of the program, previously announced the discovery of 39 microdiamonds and 15 macrodiamonds from three kimberlite core samples totaling 89.4 kg.

Commonwealth Gold, which holds a 5% working interest in the property, added 4 cents on more than 2.4 million shares to close at $1.34.

The ATW group, made up of Almaden Resources, Williams Creek Resources and Alberta-listed Troymin Resources, all continued to gain ground as well. Kennecott is earning a 65% interest in the ATW ground, west of the WO property, with each of Almaden and Williams Creek holding a 14% carried interest and Troymin holding a 7% carried interest.

Almaden jumped 65 cents to $3.80, Williams Creek added 73 cents to close at $2.98 and Troymin finished at $1.25, up 40 cents.

St. Philips Resources noted that a 60 cents jump to $2 is likely tied to its undervalued price relative to El Condor Resources, the company’s 60% partner on the South Kemess copper-gold project in north-central British Columbia. El Condor finished the period unchanged at $3.50.

A pre-feasibility study on the South Kemess project should be complete by the end of May and the joint venture plans to drill a number a exploration targets in June.

Cumberland Resources acquired property interests in the Northwest Territories from Asamera Minerals. Contrary to recent trends of concentrating on diamond exploration in the north, all the properties are gold-related, with one believed prospective for massive sulphides.

Cumberland was halted at the 75 cents level prior to releasing the news, up 15 cents on the week.

Prime Resources, 50% owner of the developing Eskay Creek property in northwestern B.C., followed the gold price up with a 40 cents gain at $2.95.