STOCK MARKETS — Western markets take breather after diamond

Western markets cooled somewhat over the report period ended April. 11, following the recent diamond-related run-up.

The Vancouver Stock Exchange resource index slipped 24.56 points to finish at 1,216.09, while the composite index remained virtually unchanged at the 754 level.

Trade Winds Resources was hammered following the release of micro and macrodiamond counts from kimberlite intersections on its Drybones Bay property near Yellowknife, N.W.T.

The best count was 4 microdiamonds and 2 macros from 36.3 kg of core in hole 3. A flood of selling pushed the issue to a low of 70 cents before it rebounded to close down 45 cents at $1.07 on more than 3 million shares. Tradewinds reports that a sixth hole on the kimberlite discovery appears to have encountered a different phase of the pipe, and the core has been shipped for analysis.

Joint-venture partners in the AK project continue to trade heavily as investors await full results from the discovery hole on the 5034 pipe. Micro and macro counts from a sample consisting of various core intervals from the hole returned the highest diamond counts yet reported from the Territories. Mountain Province Mining, 50% owner, slipped to $5 before recovering to close up a quarter at $6.25 on more than 5.1 million shares.

Alberta-listed Glenmore Highlands, which has a 40% interest, added 35 cents, while Camphor Ventures, with 10%, posted the largest gain, finishing up 54 cents at $4.04.

Trading in Swannell Minerals heated up, pushing the issue to a high of 91 cents before it settled up 8 cents at 56 cents on more than 2.7 million shares. The company is negotiating with a private group of investors to acquire a 35% interest in an Asian mining project with a deposit of precious gem minerals. Swannell expects to release further details following the signing of a letter of intent.

Sutton Resources, which has major exploration projects in Tanzania and Guyana, continues to gyrate. The issue dipped to a new year-long low of $8 before rebounding to $10 for a loss of $2.50 on the week.

Plans to acquire all the shares of Avalon Mines helped Ace Developments add 14 cents to close at 89 cents. Avalon is a private company controlled by Toronto-listed San Fernando Mining. The company holds an option to acquire several properties in Newfoundland and Labrador. Ace also plans to acquire a Mexican property which covers a well exposed polymetallic deposit with significant values of copper, gold, silver and magnetite. The deposit has never been drill-tested.

Closing up 35 cents at a new high of 95 cents was Contiki Resources, which has entered into an agreement with Norcan Resources to earn a 51% interest in that company’s La Trinidad gold project in Venezuela.

A 2,000-metre drilling program is expected to begin soon in an attempt to follow up last year’s trenching on the Eastern zone (including 9.6 grams gold per tonne over 13.9 metres and 37.3 grams over 3 metres). Norcan slipped 4 cents to close at 31 cents.

St. Jude Resources added 44 cents to close at $1.99 after reporting that its Dabikrom property in Ghana has the potential to host a major gold deposit. The company can earn up to a 65% interest in the property, which sits on the same belt as Ashanti Goldfield’s huge Obuasi gold mine. The Dabikrom property hosts 15 separate areas of old workings, and St. Jude reports that soil sampling, pitting and trenching have returned encouraging results. An agreement to option nine of its copper properties in Peru to Asarco proved to be of little help to Arequipa Resources. The issue slipped 14 cents to close at 86 cents, but it has clearly recovered from the 49 cents low recorded earlier this year. With all its copper properties now optioned to either Asarco or Phelps Dodge, Arequipa plans to concentrate on its gold projects in Peru.

AGC Americas Gold did well, closing up 42 cents at a new high of $2.02. The company is planning to conduct a major drilling program on its JD property in the Toodoggone region of northern British Columbia. Drilling last year returned values of up to 13.3 grams gold over 8.8 metres on the Finn zone.