Diamonds outshine gold on TSX

The Feb. 11-17 report period saw the S&P-TSX Composite Index recover from a mid-period dip to end just 0.6 of a point lower at 8,767.1. The gold index mimicked the yellow metal’s performance, yo-yoing itself 0.76 of a point higher to 223.49. Gold climbed US$8.75 per oz. to settle at an afternoon close of US$414.50 in London on Feb. 17.

Still, it was the nation’s diamond issues that made noise. Tahera remained the busiest mining stock, rising 2.5, or about 6% of value, to make 44.5. Marine miner DiamondWorks put in an impressive percentage increase, climbing 60, or 25%, to make $3 even. The company and its privately held partner, Magma Diamond Resources, recently sold the first package of 8,099 carats’ worth of diamonds from the recently revived Koidu project in Sierra Leone for US$1.8 million.

Ashton Mining of Canada reported the recovery of 4.63 carats from 3.87 tonnes of kimberlitic material from the Lynx occurrence on the Foxtrot property in northern Quebec. The company also recovered a total of 9.38 carats from 15.4 tonnes of material from the Renard 2 and 4 kimberlite pipes, also on the Foxtrot property. The stock couldn’t hold on to its early gains, though, and finished a nickel lower at $1.82.

Other diamond issues on the rise were Mountain Province Diamonds, up 7 to $2.75, Caldera Resources, half a penny stronger at 15.5, Rex Diamond Mining, 6 to the good at 92, and Diamond Fields International, which recovered 15 to end at 71. In late January, shares in DFI sank after the company suspended mining operations off the coast of Namibia. The suspension reflected a stronger South African rand, which had driven up operating costs.

Zinc miner Breakwater Resources saw more action than usual and was rewarded with a 15 increase to 81. Breakwater has tabled plans to buy the Myra Falls zinc-copper mine on Vancouver Island from Swedish miner Boliden for 18 million shares and 5 million warrants, each of which is exercisable into one share at $1 apiece.

Manhattan Minerals rose steadily to finish 5.5 higher at 39.5. The company has notified government-run Centromin Peru that it has initiated arbitration regarding Centromin’s decision late last year to terminate Manhattan’s option to earn a 75% stake in the embattled Tambo Grande massive sulphide property in Peru.

Aur Resources surged 55 higher to $7.80. Aur recently posted net earnings of US$10.9 million (or 11 a share) on revenue of US$215.6 million for all of 2003. Copper production from the Quebrada Blanca, Andacollo and Louvicourt mines totalled a record 249 million lbs.

Wheaton River Minerals rose 21 to $3.87 as its gold-equivalent production more than tripled to 450,000 oz., while cash costs fell by 66% to US$62 per oz., during 2003. The increase is attributed to recent acquisitions. Wheaton expects to double production again by 2006.