STOCK MARKETS — Yamba Lake results boost western market

Positive assay results from the Yamba Lake diamond discovery gave the weakening diamond exploration market a bit of a boost over the week ended Oct. 18.

That combined with a move in bullion to the US$372-per-oz. level from US$367 per oz. last week, helped the Vancouver Stock Exchange resource index post a modest gain of 14.07 points, to close at 1,388.09.

The composite index lost ground, finishing off $3.57 at the 995-level. Alberta-listed Fibre-Klad Industries, Mill City Gold and Tanqueray Resources announced that three samples from the first drill hole on the Torrie pipe, at their Yamba Lake property in the Northwest Territories, returned micro and diamond counts.

The three samples weighed a total of 161.6 kg and contained an aggregate of 152 micro- and 39 macro-diamonds.

Analysts John Kaiser and Andrew Muir at investment firm Pacific International Securities note that the find moves the Yamba group from a “wannabe” satellite up to a diamond mine contender, although additional drilling will be required to assess the discover.

All three issues were up strongly, midway through the trading session on Oct. 19, following a 1-day trading halt.

Mill City, which is earning a half interest in the project, was up 88 at $1.41.

Fibre-Klad, which has a 21% diluted interest, jumped $1.34 to the $2.05 level and Tanqueray, which owns the remaining 29% diluted interest, doubled to the $2.75 level.

The news helped reverse a general downtrend in a number of issues, including the DHK syndicate, which is exploring the WO claims in the Lac de Gras region of the Northwest Territories with Kennecott, Commonwealth Gold (5% interest), Toronto-listed Aber Resources (10% interest) and SouthernEra Resources (10% interest).

The syndicate, which jointly owns a 35% interest in the diamond property, includes Dentonia Resources, Kettle River Resources and Alberta-listed Horseshoe Gold Mining.

Dentonia bounced off a low of $3.30 to close down 45 cents at $3.90 while Kettle River finished down 87 cents at $6.87, up from a low of $6.50. Horseshoe Gold dropped to a low of $2.80 before closing at $3.60, down only 15 cents.

After touching a low of 62 cents, Commonwealth Gold managed to rebound to 80 cents for a gain of a penny on the week.

Shareholder approval of the acquisition of the Con underground gold mine in Yellowknife, N.W.T., helped Miramar Mining gain $1.10 to close at $5.75. The company bought the mine from Kennecott for US$25 million plus 1.5 million shares and also paid Miramar president Walter Berukoff 2.4 million shares for his role in the acquisition.

Drill results from the White River claims in Ontario were not well-received by shareholders of partners Akiko Gold Resources and Gold Giant Minerals. Hemlo Gold Mines, which is earning a half interest in the property, released results from six wide-spaced holes on the Sugar zone.

The drilling returned mixed results ranging from 7.9 ft. grading 0.007 oz. gold per ton in hole HD 93-05 up to 12.5 ft. at 0.50 oz. gold in hole HD 93-03.

Akiko lost 25 cents to close at $1.45 while Gold Giant finished down 50 cents at $2.30.

Namibian Minerals completed the reverse takeover of a listed company, to finish the reporting period at $3.70. That puts the market capitalization of the company at almost $40 million, given its 10.8 million shares outstanding. The company has exclusive rights to prospect for precious stones off the west coast of South Africa and within the offshore diamond concessions of Namibia. North American Metals took a big jump after announcing assay results from two new gold zones at its Golden Bear mine property in northwestern British Columbia.

The issue finished up 49 cents at 74 cents on thin trading. Shareholders would be wise to note that the company still owes about $56 million to Toronto-listed Wheaton River Resources, the company’s major shareholder.