Resources round-up: Firestone Diamonds, Edge Resources, Ormonde Mining

Firestone Diamonds jumped 12.9% after the firm reported it had discovered very rare 'type 2' diamonds at its Liqhobong mine in Lesotho. Type 2A diamonds - of which the company found 28 - make up less than 2% of all diamonds and are considered the purest of all diamonds. One of the diamonds found - a blue type 2B - is considerably rarer than that. The company also reported that a 27 carat, fragmented stone was recovered in September, and when reconstructed appeared to have originated from a stone in excess of 200 carats.

Edge Resources rose after it said a regular interim review of its borrowing facilities with the National Bank of Canada had resulted in no changes to any of the terms or conditions of the company's existing borrowing facilities. The company also said it had spudded the first of two wells in Grand Forks, Alberta. The firm's shares rose 3.9% following the announcement.

Ormonde Mining was up 3.6% after tests showed near-surface mineralisation on the northern part of its its Barruecopardo Tungsten Project in Spain was thicker and better developed at depth. The firm said this demonstrated the potential to expand mineral resources at the site. Ormonde said it would focus on a more targeted resource expansion after it began mining activities at the site.

Start your trial of MoneyWeek today

Get unparalleled financial insight, analysis and expert opinion you can profit from.

Start your trial

Sign up for MoneyWeek’s free twice-daily newsletter.

Join more than 165,000 subscribers and keep yourself informed with latest financial news, insights and expert analysis to help you understand what really matters when it comes to your finances.

Join more than 165,000 subscribers and keep yourself informed with latest financial news, insights and expert analysis to help you understand what really matters when it comes to your finances.

Sign up

Europa Oil & Gas plunged 12% after analysts questioned what the company would do next having revealed it had a net cash balance of just £0.2m. They are worried that amount gives the firm no leeway to carry out exploration activities. The company saw revenue up 34% to £5.1m, but posted a net loss of £11.3m after exploration write downs.

Landore Resources said drilling had re-commenced on the western section of its Scorpion Zone in Eastern Canada, where it is targeting a "massive sulphide mineralisation" below and to the west of the existing deposit. It said two completed drill-holes had successfully intersected significant mineralization. Assays are pending. Shares were up 2% on the news.

New World Oil & Gas said drilling at its flagship Blue Creek Project in Northwest Belize was on schedule and under budget. The firm said it would be in a position to judge whether it had made an oil discovery by mid-November. It added that its Danica Jutland and Danica Resources projects in Denmark were proceeding according to plan and the company expected to announce updated Competent Person's Reports for both projects in the fourth quarter of 2012.

MM