STOCK MARKETS — VSE slips slightly as Indonesian juniors suffer mightily — Latin America, Canadian diamonds hot as investors shop around

The Vancouver Stock Exchange composite index was down less than 1% for the report period ended May 6, slipping 9.84 points to close at 1,012.85. The resource index shed 32.01 points, or 1.7%, to finish down at 1,815.55.

The combined value of the Alberta Stock Exchange was up 16.46 points at 2,498.57.

The collapse of Bre-X Minerals was particularly damaging for junior companies exploring in Indonesia. Hardest hit were: Indomin Resources, down $1.28 to $1.82; Borneo Gold, down $1.12 to $1.53; Alberta-listed South Pacific Resources, down $1.04 to $1.10; and Pacific Amber Resources, down 92 cents to $1.98.

Market activity surrounding Toronto-listed Ashton Mining of Canada’s discovery of diamond-bearing kimberlites in north-central Alberta affected a number of junior companies holding ground in the area.

New Claymore Resources picked up 52 cents to close at $2.92, Alberta-listed Montello Resources was up 15 cents at 75 cents, and Alberta-listed Troymin Resources added a dime to finish at $1. Big I Developments, which is awaiting VSE approval for the acquisition of a 50% interest in a 46,000-Acre block near the town of Peace River, was up 2 cents at 19 cents. Primero Industries, which can earn a 50% interest from New Claymore in a 300,000-Acre block, edged down 2 cents to 50 cents.

Diamond explorer Winspear Resources traded as low as $1.45 before climbing back to close at $1.75, down 16 cents. The company announced it had completed 32 drill holes to date in the Snap Lake area of its 57.3%-owned Camsell Lake diamond project in the Northwest Territories.

Drilling intersected kimberlite dykes in 12 holes within a 1-sq.-km area on the western side of Snap Lake. Five holes remain to be drilled in the general area of anomaly 186, where previous drilling recovered a 107-Metre interval of complex kimberlite breccia. Diamond counts from the kimberlite intervals are not expected for another six to eight weeks. Toronto-listed Aber Resources holds a 42.7% interest in Camsell Lake.

TKO Resources jumped 25 cents to close at 83 cents in heavy trading. A spring drilling program is under way at its joint-Ventured gold property in Humboldt and Lander Counties, Nev. A U.S. subsidiary of Uranerz Exploration & Mining can earn a 51% interest in the property by spending $1.2 million over four years. In related news, TKO is negotiating to acquire a 68% net-revenue interest in gas leases in Nebraska.

Altough Kensington Resources dropped to 70 cents on news that a $4.8-Million financing fell through, the issue bounced back to close at $1 for a 5 cents gain.

The company is awaiting VSE approval on the acquisition of the China Diamond projects but has reported that it is still committed to its Saskatchewan projects. To wit, the company is making plans to drill this summer at its Fort la Corne diamond project and Clearwater nickel project.

The third phase of drilling is under way at Francisco Gold’s Sauzal gold project in Mexico’s Chihuahua state. The current program will target extensions of the West and East zones, as well as several new prospects.

Francisco added $2.10 to finish at $24.

Columbia Gold Mines is looking to raise $4 million through a brokered private placement of 3.5 million special warrants priced at $1.15 each. The proceeds, along with existing working capital of $1.8 million, will be used to fund a 20,000-Metre drill program at the Fyre Lake copper-gold-cobalt project in southeastern Yukon. Drilling is expected to begin in mid-May. Columbia Gold closed up 9 cents at $1.12.