STOCK MARKETS — Diamonds maintain sparkle on western stock

Diamonds, diamonds and more diamonds are the reason trading activity is holding relatively steady on western markets, and holding off the expected summer doldrums. Some downward pressure on gold stocks was noted, however — particularly when the spot price took a dip in the first few trading days of August.

Much of the trading activity during our report period, which ended at noon on Aug. 3, relates to ongoing interest in diamond exploration taking place in the Northwest Territories. The Vancouver Stock Exchange’s resource index was off a modest 2.13 points at 1,562.43 from last week, while the composite index was up 4.09 points over the week at 925.72.

Top trading spot once again went to Canadian Industrial Minerals, which was up 25 cents at $1.39 on news of an oil discovery on an offshore concession in Nigeria. A recent private placement will provide proceeds of $4.3 million to finance ongoing drilling on the African concession.

On the Alberta Exchange, Spider Resources was down 3 cents at 34 cents in active trading. The junior is involved in a diamond exploration project in the James Bay Lowlands of northern Ontario. Ashton Mining of Canada can earn 51% of the project, which is held 30% by Spider and 70% by KWG Resources. The share price of Bolivar Goldfields rebounded during the past week, with the issue ahead 50 cents at $2.85. Bolivar has outlined a gold resource on its land package in Venezuela’s Bolivar state and is busy exploring other targets. Last week, juniors active in Venezuela came under downward pressure because exploration results from one of the higher-profile projects in the country were not as good as hoped.

A number of juniors are busy exploring gold and copper projects in British Columbia, which goes to show that the grass is not always greener on the other side of the Rio Grande.

Camnor Resources was up 13 cents at $1.33 after announcing that the first hole drilled this year at the Willoughby project had intersected 38.4 ft. of 1.17 oz. gold per ton. The project is near Stewart and Camnor notes that the North zone target occurs within an altered porphyry stock similar to the adjacent Red Mountain gold deposit of Lac Minerals.

Camnor is earning a 50% interest in the Willoughby project from Gold Giant Minerals. The latter company was up 23 cents at 73 cents.

The Red Chris gold-copper porphyry deposit was back in the limelight this week, after operator American Bullion Minerals announced assay results from five holes. The issue was up a nickel at $2.55, based on encouraging drill results such as 612 ft. of 0.78% copper and 0.15 oz. gold, and 810 ft. of 0.73% copper and 0.011 oz. gold. A $3.5-million work program is aimed at developing additional reserves.

The latest discoveries of TSE-listed Aber Resources are helping sustain interest in diamond exploration in Canada’s North. Speculation is growing that Aber may move to acquire or merge with other juniors exploring for diamondiferous kimberlites, and then perhaps become a takeover target itself for a major company.

After all, during the past year, Aber acquired a 9.9% interest in Mill City Gold Mining and a 5% interest in Fibre-Klad Industries, which subsequently merged with Tanqueray Resources. Mill City and Tanqueray are partners on the Yamba Lake project in the Lac de Gras region where several diamondiferous kimberlites have been discovered. De Beers Consolidated Mines recently agreed to participate in this project. Mill City was off 4 cents at $1.63 while Tanqueray was down a nickel at $3.05.

The settlement of an overstaking dispute in the Drybones Bay area near Yellowknife, N.W.T., helped Trade Winds Resources move up 35 cents to 88 cents. The junior now has the exclusive right to acquire the previously disputed claims. Kimberlites are the exploration target.