STOCK MARKETS (June 29, 1992)

Tyler Resources stood out as a winner among softening diamond stocks during the week ended June 23 as the issue moved to a new high of 34 cents on The Toronto Stock Exchange before slipping slightly to 32 cents today, June 24.

Tyler stands to raise $1.1 million for exploration on its Carat and Crystal diamond properties near Lac de Gras in the Northwest Territories through a private placement of warrants and debentures with Golden Rule Resources. Golden Rule, which will end up with a 23.6% stake in Tyler after the placement, gained a penny over the report period to close at 45 cents in a 52-week range of 35-94 cents.

Shares of fellow diamond explorer Aber Resources did not fare so well. Continuing a steady June decline, the stock dipped below $2 for the first time in several weeks as investors waited to hear if any “fancies” (pink and yellow diamonds) are among the 90 carats recovered from the Dia Met-BHP bulk sample. Aber has sent a field crew to Lac de Gras and has just started drilling on the High Lake base metal property near the Arctic coast, President Grenville Thomas said at the company’s annual meeting. Later, at the SouthernEra Resources meeting, President Christopher Jennings told shareholders the company could be producing diamonds within nine months if a deal to acquire an undisclosed former producer goes through. He would not comment on rumors that SouthernEra is on the verge of completing a private placement with mining giant RTZ involving one million shares at $1.75 per share. SouthernEra edged up 12 cents to $2.06.

With rights to a diamond-bearing pipe in Clifford Twp. near Kirkland Lake, Ont., Regal Goldfields (CDN) jumped 10 cents to $1.85 as rumors of a possible deal between Regal and cash-rich Sudbury Contact Mines circulated. Little-known Panthco Resources (CDN) also traded briskly after investors learned that Sudbury Contact had moved its rig on to Panthco’s ground in search of more kimberlite pipes.

Financed by affiliate Agnico-Eagle Mines, Sudbury plans to drill eight holes on the Panthco property. Sudbury and Agnico lost 26 cents and 50 cents to close at $1.45 and $5 respectively while Panthco closed unchanged at 35 cents. Agnico is turning in record production at its LaRonde gold mine in northwestern Quebec, shareholders discovered at the company’s recent annual meeting, and expects the mine to produce 140,000 oz. this year. Other senior gold producers got a brief shot in the arm during the report period as gold edged up to US$344. American Barrick Resources and Hemlo Gold Mines both posted gains before settling today at $32.75 and $9.78 respectively in sympathy with a lower London second fix of US$342.30. But in the wake of Homestake’s decision to write off the carrying value of the Eskay Creek gold deposit by US$160 million, International Corona shed 12 cents to $5.38.

Royal Oak also moved lower after President Peggy Witte told shareholders the company would probably post a loss during the second quarter. A strike at the Giant mine continues to plague Royal Oak, which dropped almost a dime to $1.75.

Fellow unfortunate Claude Resources has been issued a temporary cease-trading order for failure to make statutory filings. Reserves at the company’s Seabee gold mine in Saskatchewan have fallen seriously short of expectations since the mine entered production last November. Before receiving the order on June 24, Claude was trading at 23 cents.

Word on the street is that Aur Resources, down 25 cents to $2.80, is ready to resume drilling on Joutel Resources’ 26-claim copper property in northwestern Quebec. Joutel is also rumored to be negotiating for an exploration concession in Cuba. Active lately, Joutel lost 3.5 cents to 11.5 cents. The junior closed slightly higher today at 12 cents.