STOCK MARKETS — Diamonds lose lustre, yet indexes gain

Despite a general downturn among diamond issues and a stable gold price at the US$355-per-oz. level, both the Vancouver Stock Exchange resource and composite indexes gained ground.

During the period ended Oct. 5, the composite index added 12.34 points to close at 991.13, while the resource index jumped 34.28 points to close at 1,329.10.

Members of the DHK group all took hits over the week.

Kettle River Resources dropped to a low of $7 before rebounding to close down 50 cents at $8.50.

Dentonia Resources traded as low as $4.15 before finishing down 50 cents at $4.75, while Alberta-listed Horseshoe Gold Mining lost 70 cents to close at $4.30.

Kennecott has completed a 65% earn-in on DHK’s Lac de Gras ground in the Northwest Territories. The major is gearing up for a 5,000-tonne bulk sample on the diamond prospect this winter. It will be focused on the Tli Kwi Cho (DO-27) kimberlite pipe.

Commonweath Gold, which holds a minority interest in the project, closed down 10 cents at 80 cents.

Disappointing exploration results from the Humpy 1 and Humpy 2 claim blocks hurt partners Atna Resources, Winslow Gold, Island-Arc Resources and Toronto-listed Pure Gold Resources.

Atna dumped 33 cents to finish at 60 cents, Island-Arc dropped 29 cents to 91 cents, Winslow slipped 17 cents to 64 cents, and Pure Gold dipped 7 cents to close at 39 cents.

The exploration program, which is being funded and supervised by Ashton Mining, drill-tested targets but failed to intersect any kimberlite. Alberta-listed Tanqueray Resources, Fibre-Klad Industries and Mill City Mining fared better on their drilling at Yuma Lake, N.W.T.

A 5-hole program testing three separate anomalies resulted in the discovery of three kimberlite pipes, all containing abundant diamond indicator minerals. Despite the favorable results, all three companies lost ground, with Tanqueray dipping 25 cents to $1.20, Fibre-Klad off 10 cents at 80 cents and Mill City down 8 cents at 53 cents.

Winspear Resources continued to lose ground, slipping 29 cents to finish at $1.12.

Winspear, along with partner International Vestor Resources, recently announced the intersection of kimberlite in two holes at the Snare Lake property in the Northwest Territories.

International Vestor managed to reverse its downtrend, finishing up a nickel at 90 cents.

San Andreas Resources jumped 45 cents to close at $2.20. Investors are awaiting results from drilling this summer on the company’s Prairie Creek zinc-lead-silver property in the Northwest Territories.

The discovery of a number of new gold zones on its Bralorne property in southern British Columbia did not do much for Avino Mines & Resources. The company reported trenching values of up to 0.46 oz. gold per ton over four feet, with the issue gaining 3 cents to close at 48 cents.

Avino has optioned half the property to a private company controlled by Louis Wolfin, president of Avino.

A preliminary round of drilling at the White River project in northern Ontario has been completed by Hemlo Gold Mines, under an option to earn a half interest from partners Akiko Gold Resources and Gold Giant Minerals. The drilling totaled about 2,600 ft. in six widely spaced holes, all of which are reported to have intersected the targeted Sugar zone, although assays are still awaited.

Akiko added a dime to close at $1.80, while Gold Giant jumped 30 cents to $2.50.

Exploration at the Niaouleni gold concession is under way with a second-phase, $1.2-million program of test-pitting, trenching and drilling. Viceroy Resources is earning a 70% interest in the property from Mink Mineral Resources.

Mink closed down 15 cents at $1.05.