STOCK MARKETS — Dia Met touches $55 after release of new

Trading today, Dec. 9, was marked by extreme volatility in the diamond stocks after Dia Met Minerals and partner BHP Minerals Canada released results from nine more diamond-bearing kimberlite pipes on their claims in the Northwest Territories.

Opening at $55, Dia Met swung wildly between $44 and $55 as bullish investors and profit-takers jockeyed for trading time. The stock finally settled at $45.87 for a gain of $10.62.

Given Dia Met’s 29% interest in the Lac de Gras claims, this new trading range puts a $1.4-billion value on the property.

Property neighbor SouthernEra Resources (TSE), which recently negotiated a private placement to raise $6 million, picked up 40 cents to $4, while Aber Resources tacked on 28 cents to $2.70.

Mining analysts interviewed by The Northern Miner were ecstatic about the results, saying that two of the new pipes appear to be richer than the Point Lake kimberlite.

“While a great deal of further exploration and testing work has still to be done, the news clearly confirms our view that we are witnessing the development of a new world-class diamond resource,” says John Hainey of Canaccord Capital. “The earlier test work on the Point Lake discovery pipe gave a strong indication of this possibility and these results simply add additional support.”

Looking back to the week ended Dec. 8, diamonds were also the name of the game. Trading a remarkable 15.2 million shares, Pure Gold Resources added 17 cents to 42 cents. The company has $1.5 million in cash and an agreement with Ashton Mining to explore its Lac de Gras claims.

Other active diamond issues included Lytton Minerals, up 25 cents to $1.40; Tyler Resources (TSE), up 4 cents to 47 cents; United Reef Petroleums, up 26 cents to 74 cents; and Westfort Petroleum, up 2 cents to 12 cents. While residents of Yellowknife, N.W.T., wallowed in the good news, people in Matagami, Que., were also celebrating a new find. Drilling just southwest of its Matagami mill, Noranda intersected 45 metres grading 5.9% zinc and 1.15% silver in one hole of a 4-hole program. The deposit remains open to the east and at depth. Noranda added 25 cents to $18.50.

Encouraging news from the U.S. helped lift the broad market, with the TSE 300 composite index picking up 25 points. The Metals and Minerals index continued last week’s upward climb, adding 26 points.

Despite a weak gold price that appears to be going nowhere, Cameco announced plans to spend $10 million to assess the feasibility of developing a 15-million-oz. gold reserve in Kirghizstan, which became an independent state in 1991. Cameco finished the week at $17 for a gain of 25 cents. Gold closed unchanged at US$335.25 per oz. in New York but slipped US$2 today on the London Metal Exchange.

A slight and temporary uptick in the nickel price helped fuel heavy trading of Inco shares, with the nickel miner ending the week up $1.63 to $28.88. Nickel was unchanged at US$2.53 per lb. for the week.

Driven by political tension in South Africa, one of the largest producers of platinum group elements, platinum added US$8 to US$368 per oz. while palladium added US$9 to US$107 per oz.

Despite eliminating its annual dividend, Sherritt Gordon added 25 cents to $6.50. Sherritt says the depressed state of its principal markets prompted the cut.

To finance further drilling on the Moss Lake property near Thunder Bay, Ont., Hemlo Gold Mines has purchased 333,334 flow-through shares of Central Crude for 45 cents. Crude shed 3 cents to 42 cents and Hemlo was unchanged at $7.75. Royal Oak Mines added 11 cents to $1.87 with news that BP Canada is selling 3.75 million Royal Oak shares to the public at $1.85.