Diamonds offer sparkle to a lacklustre market (May 25, 1992)

Shrinking share values pushed the Vancouver Stock Exchange composite and resource indices lower during the week ended May 19.

The composite index finished off 2.88 points at 612.83, while the resource index slid 8.42 points to close at 511.80.

The Alberta Stock Exchange composite index managed to add 7.51 points during the same period to close at 810.74, while gold remained either idling or dead (depending on whom you are talking to) at the US$336-per-oz. level. Diamonds seemed to offer a rare spark of excitement for markets, with Dia Met Minerals shooting up past $13 by presstime. Dia Met, which has a diamond exploration play with BHP-Utah Mines near Lac de Gras, N.W.T., is having a bulk sample processed in Colorado.

Dia Met says early results indicate that diamonds weighing collectively at least 90 carats have been recovered from the bulk sample. A preliminary examination has revealed that about one-quarter of the diamonds are likely to be of gem quality. Some stones in the 1-3-carat range have been uncovered. Texas Star Resources more than doubled on news of a proposed merger with private firm Diamond Exploration. The issue jumped 49 cents to close at 84 cents.

Diamond Exploration has interests in mineral licences in the Arkansas Crater of Diamonds State Park where more than 10,000 diamonds have been found since its discovery in 1906. It remains to be seen if mineral development in the park would ever be given the go-ahead, although the company does have other prospective ground outside the park.

Fluorite appears to offer some excitement. Silver Glance Resources, which is exploring a fluorite-silver property in Arizona, managed to touch a new high of $13.38 before settling unchanged at the $12 level.

Assays results from drilling on the Bellas Gate copper-gold project in Jamaica did not offer much cheer to shareholders in Golden Ring Resources. Drilling on the Camel Hill zone returned a number of wide copper-gold intersections but gold values were relatively low at the 0.004 oz.-per-ton level. As a result, sellers jumped on the stock, slashing 35 cents off the issue to leave it at the 55 cents level.

Kennecott’s move to discontinue its exploration program on the Lockwood property in Washington following the release of a number of non-mineralized holes hurt Island-Arc Resources. The issue lost 20 cents to finish at 40 cents while Formosa Resources, the company’s partner, remained unchanged at the $2 level on no volume. Kennecott can earn a 51% interest in the project and it may conduct further drilling later in the year.

El Condor Resources slipped 30 cents to $4.40, marking a drop of almost $1 from its recent high of $5.38. The company recently announced a $6-million financing priced at $4 per unit. The funds will be used for additional drilling and development work on its 60% owned South Kemess copper-gold project in north-central British Columbia.

St. Philips Resources, the company’s 40% partner, edged down 3 cents on the week to finish at $2.70.

With this year’s exploration and development program well under way at the Fish Lake property near Williams Lake, B.C., part-owner Taseko Mines posted a healthy rise, finishing up $1.38 at $14.68. The company plans to spend at least $8.5 million on stepout and infill drilling as well as engineering, feasibility and permitting.