STOCK MARKETS — Mountain Province rises on diamond

Aside from selective hot spots, western markets continued to track sideways during our report period ended March 21, while gold slipped US$4 to the US$382-per-oz. level.

The Vancouver Stock Exchange resource index managed to gain almost 10 points to close at 1,111.87, while the composite index finished the week at 706.37 for a gain of just over a point.

Mountain Province Mining put in a stunning performance, jumping $1.74 on more than 11 million shares to close at $2.95. The action is tied to reports of additional kimberlite intersections at its 50%-owned AK property in the Northwest Territories. Based on initial analysis of core from the first two holes, the joint venture expects the kimberlite pipe to be diamondiferous. A 470,000-share jump in Mountain Province’s short position to a total of more than 520,000 shares indicates that some market-watchers may not be as optimistic about the project’s potential.

Alberta-listed Glenmore Highlands, which holds a 40% interest in the AK property, leapt $1.50 to close at $2.60, while 10% owner Camphor Ventures finished up 95 cents at $1.80.

By comparison, previous reports of kimberlite intersections by Trade Winds Resources at its Drybones Bay discovery near Yellowknife, N.W.T., have done little for that issue. The company recently shipped kimberlite core from three holes for diamond analysis, and results are expected at the beginning of April. Trade Winds finished up 13 cents at 55 cents.

Murgor Resources continued to backtrack, slipping 26 cents on more than 1.5 million shares to close at 62 cents. The company released assay results from three more holes on its Barry Twp. project in Quebec, including 8.2 ft. grading 0.07 oz. gold per ton and 6.6 ft. grading 0.05 oz. in hole 8; 15.1 ft. grading 0.07 oz. in hole 9; and 2 ft. grading 0.2 oz. in hole 10. An additional 10 holes will test the dip and strike extent of the zone. Colossal Resources continued to gain ground, adding 71 cents to close at $3.70. The company recently bought two 15-ton, open-arc furnaces for use in the recovery of cobalt from a slag dump in Zambia. The company is acquiring a 60% interest in the Zambian company that holds the rights to the dump. The slags contain an estimated 8-10 million tons grading 0.7% to 0.83% cobalt. It appears some of Canarc Resource’s drilling last year was actually conducted on a claim owned by Ecstall Mining. The drilling, which took place on the “North zone” (north of the old Polaris Taku mine), intersected up to 12.6 ft. grading 0.32 oz. gold. Canarc disputed Ecstall’s ownership of the claim and the chief gold commissioner recently dismissed the complaint. Ecstall finished unchanged at the 86 cents level.

Quinto Mining gained ground with the announcement that it has signed a contract with a Japanese conglomerate, making it the sole distributor of certain industrial applications of the graphite produced at its Lumby, B.C., property. The issue added 80 cents on the news to close at $1.75. Micro Minerals, which holds a 30% interest in Quinto’s Lumby property, had a more muted response to the news, slipping 8 cents to $1.07.

Quarrying is expected to be under way shortly at the Patamacca granite quarry in Suriname, news of which helped owner Bomax Resource jump 46 cents to $2.21. The company expects to begin production at 10,590 cubic ft. (300 cubic metres) per month and ramp up to 35,310 cubic ft. (1,000 cubic metres) per month within a year. A 5-year sale agreement is in place with a purchaser for the quarry’s project at US$880 per cubic metre.

Layfield Resources has acquired a half interest in three blocks of ground in the Voisey Bay area of Labrador, giving the issue a 10 cents boost to 26 cents. The remaining 50% is split between a private company and United Compass Resource, which added 23 cents to close at 53 cents.