STOCK MARKETS — Juniors generate investor interest with

Western markets continued to gain ground during the week ended Dec. 15, adding to an extended and predominantly diamond-related rally.

The Vancouver Stock Exchange resource index closed up by more than 27 points at 653.16, and the composite index added 11.41 points to close at the 605 level.

With the gold price fairly quiet (until today, Dec. 16, when it jumped to better than US$337 per oz. in London) and base metals generally depressed, more and more juniors are turning to diamond exploration to generate investor interest.

Melinga Resources jumped 16 cents to close at 43 cents after announcing an agreement to acquire all of Calgary-based Suncor’s mineral permits and mining claims in the southeast Northwest Territories. The deal will give Melinga varying interests from 55% up to 66.7% in about 600,000 acres in the area. Breckenridge Resources recently acquired an option to earn a 50% interest in the Batty property on Somerset island, N.W.T., from a private group. Cyclone Capital owns the remaining 50% interest in the property which covers a cluster of 21 known kimberlite pipes. Cyclone is now in the process of shipping samples from three separate pipes for analysis in South Africa. Cyclone, in a joint venture with Westward Explorations, also announced plans to acquire several diamond properties in Colorado and Wyoming. The issue finished the period up 85 cents at $2.25, while Westward added 25 cents to close at $1.00.

Although no details were released, Noront Resources announced the acquisition of a property interest in the Lac de Gras area of the Northwest Territories. The issue gained 8 cents to close at 22 cents.

Kettle River Resources and Dentonia Resources continued to gain ground over interest in their WO property southeast of Dia Met’s Lac de Gras property. Kettle River finished up 50 cents at $1.80, while Dentonia added 23 cents to close at 90 cents.

Mt. Grant Mines posted an impressive runup, jumping 76 cents to close at $3.20. The company recently closed an agreement to acquire the shares of a Venezuelan company which owns gold and diamond mining concessions in the State of Bolivar, Venezuela. The concessions are located near Placer Dome’s Las Cristinas project, the site of a large gold discovery.

Crystallex International, which also holds ground in the area, finished up 25 cents at $1.90. Channel sampling along a shear zone on the property returned an average grade of 34.2 grams per tonne over an average width of 11.2 metres and along a strike length of about 110 metres. Crystallex reports that the zone is open in both directions along strike as well as at depth. It appears that Seine River Resources finally closed a US$5 million private placement. The company reports that irrevocable and unconditional banking instructions have been given to transfer the funds against delivery of five million common shares and five million share purchase warrants. Seine lost 31 cents to close at $2.29.

Skyline Gold pulled back following its recent spectacular runup, finishing at $1.24 for a loss of 16 cents on the week. The company, which owns a closed gold mine and a large land package in the Iskut River area of northwestern British Columbia, is in the process of restructuring its finances. Buyers pushed up the price of Vananda Gold; drilling continues on the company’s Texada Island property in British Columbia. The issue closed up 24 cents to $1.39. A recently reported drill hole from the property intersected 3.2 metres grading 3.3% copper and the company reports that a hole 200 metres to the south intersected three metres of massive sulphides with assays pending.

Canarc Resource reports a successful takeover offer to shareholders (excepting U.S. residents) of Suntac Minerals; upon paying for the tendered securities, Canarc will have a 91% interest in Suntac (93% if warrants are exercised). Canarc closed the week up 12 cents at $1.

On the Alberta Stock Exchange, Allegheny Mines, up one penny to 76 cents, announced plans for 1993 to explore its Mines gold properties in McCaul Twp. 20 miles east of Atikokan in northwestern Ontario.