Diamonds glitter on junior market

Vancouver — Canada’s junior exchange experienced a surge in diamond-related issues during the week ended June 17. The S&P-TSX Venture Exchange composite index jumped 17.36 points, or 1.58%, and closed at 1,115.54.

News of a third kimberlite on the Churchill diamond project in Nunavut sent shares of Shear Minerals higher. The junior added 59 to its value and closed at $1.54 on a volume of 7.8 million shares. The shares have been on fire since the release of news that kimberlites were intersected.

International Wayside Gold Mines finished the week at 15, up 9 on 5.3 million shares. The junior recently released results from eight drill holes in its second-phase exploration program at the Cariboo gold project, near Barkerville, B.C. The program was designed to evaluate a portion of the Bonanza Ledge zone, and holes were spaced 20 ft. apart. Highlights include hole 7, which cut 145.6 ft. averaging 0.364 oz. gold per ton, and hole 8, which returned 148 ft. averaging 0.397 oz. gold per ton.

International Samuel Exploration closed at 40, up 6 on a volume of 2.7 million shares. The company can earn up to a 65% interest in the Churchill West diamond property in Nunavut. Consideration is 200,000 shares, reimbursement of staking costs, and $1 million in exploration expenditures over two years. The property is subject to a 2% net smelter return royalty.

Amerigo Resources lost 8 and finished the week at 62 following the trading of 2.1 million shares. The company has the option of acquiring all the outstanding shares (and debt) of Chilean-based Minera Valle Central (MVC). A final report by engineering firm AMEC assessed several potential expansion and improvement projects that could be undertaken to increase copper production.

American Bonanza Gold Mines jumped 5 and closed at 31 as 1.8 million shares changed hands. The company has set up an underground drill station at the Copperstone project in Arizona, and selected a drilling contractor. Drilling will begin in late June in an attempt to upgrade the D zone resource to reserve status.

Kensington Resources rocketed 30 to its value and closed at $1.46 with 1.7 million shares traded. The company recovered 664 macrodiamonds (greater than 1.5 mm screen cutoff), collectively weighing 93.06 carats, from a bulk sample of 1,272 tonnes at its Fort la Corne joint-venture property in Saskatchewan. Fifty-three of the diamonds were larger than 0.25 carat and, together, account for 45% of the total weight. Recovered were five large diamonds that weighed 10.23 carats, 3.61 carats, 2.595 carats, 2.57 carats, and 1.820 carats.

Apac Minerals lost 8 and closed at 44 with 1.7 million shares crossing the floor. In April, the junior agreed spend US$2 million to earn a 70% stake in the Chinese gold property, which is part of the Nibao gold project, discovered more than 10 years ago.

New Shoshoni Ventures dropped 18 and closed at 58 on 1.4 million shares. The company bucked the generally positive trend in the diamond sector after reporting that diamonds were recovered from the second drill hole intersecting the DB-02 kimberlite on the Drybones property in the Northwest Territories. Out of a 172.9-kg sample, some 142 diamonds were recovered.

Bishop Resources ended the week flat at 14 with 1.4 million shares traded. The company recently staked ground adjoining its Gordon Lake gold property in the Northwest Territories. Previous work, by Giant Bay Resources, outlined 12 gold-bearing zones.