STOCK MARKETS — Market speculation returns diamond stocks to

Diamond stocks sprang back to life during the week ended March 2 with several of the main Lac de Gras, N.W.T., players touching new highs on speculation over spring drilling programs.

Among those entering new 52-week territory on the Toronto Stock exchange were Lytton Minerals, up 65 cents to $3.10, SouthernEra Resources, up 70 cents to $5 and Tyler Resources, up 25 cents to 90 cents. All three are expected to shortly begin drilling around Lac de Gras in the hope of duplicating the spectacular results from Dia Met Minerals’ Point Lake kimberlite.

Dia Met, which has resumed drilling on its own targets, finished the week at $44.50 for a gain of $4. It added another $1.25 today (March 3). Also active in the Lac de Gras area, Caledonia Mining touched a new high of 89 cents before slipping back to 85 cents for a 37 cents gain. The company issued a statement saying the stock activity may be related to further staking activity in the Northwest Territories. Word on the street is that Caledonia is chasing alluvial targets in the area. Caledonia closed at 90 cents today.

Diamond fever has also spread to Guyana, where Exall Resources has been given the go-ahead to proceed with the Mazaruni alluvial diamond project. Exall, up 75 cents to $2.10, plans to build a 2,000-metre-per-day pilot plant on the property to test the concession’s potential for diamonds and gold. Heavy trading in the diamond stocks played a part in boosting TSE activity to an all-time monthly high last month. More than 969.6 million shares changed hands, representing a 75.5% increase over activity in February, 1992. The Montreal Exchange also had an exceptionally active February as shares valued at $2.3 billion changed hands.

Trading on eastern markets showed no signs of letting up today as more than 61 million shares traded in Toronto.

Among the most active stocks in the $1-plus range last month were gold producers Placer Dome and Royal Oak Mines. Placer added 50 cents to $16.75 on a volume of 12 million shares, while Royal Oak added 77 cents to $2.87 on 11.6 million .

Royal Oak experienced a slight setback during our report period, slipping 8 cents to $2.82 on strong volume after announcing plans to acquire Northgate Exploration’s mothballed Colomac gold mine in exchange for shares worth $10 million.

Royal Oak, which estimates that it will need $15 million to restart the mine, plans to issue nine million special warrants at $2.80 for proceeds of $25 million. The company currently has about 75.4 million shares outstanding, including the 3.5 million it will issue for Colomac.

Also planning an offering to raise cash is Curragh Resources (TSE), which took a dramatic 45 cents slide after Nesbitt Thomson crossed a block of 2.1 million shares at 50 cents. The base metal producer is counting on a $25 million loan guarantee from the Yukon government to finance development at its Faro zinc mine. A decision is expected shortly.

Curragh finished the week off 40 cents at a record low of 85 cents. It picked up 20 cents today to close at $1.05.

Still mulling over its financing options, including a possible rights offering, Agnico-Eagle Mines hopes to raise at least $35 million for development on its LaRonde, Vezza and Goldex properties in Quebec. The gold producer slipped 25 cents to $5.38.

Yet another company with hat in hand is ME-listed Novicourt. To fund its share of development on the Louvicourt project in Quebec, the junior has announced a rights offering. Noranda will guarantee the offering by purchasing shares not taken up by shareholders.

Novicourt added 5 cents to $3.10 while Noranda picked up 62 cents to $18.75. ME-based MSV Resources tacked on 8 cents to 71 cents after announcing plans to purchase the Portage and Copper Rand mines in Chibougamau, Que., from Westminer Canada for a song.

Announcing earnings of $7.64 million from its asbestos holdings for the third quarter ended Dec. 31, 1992, ME-listed Societe d’Exploration Miniere Mazarin added a dime to $1.04 on a volume of 2.1 million.

Ego Resources continued to charge ahead on plans to buy a private company that has developed a new low-cost method for recovering cobalt from high-grade feedstock. The issue added 30 cents to 77 cents.