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

Also includes: Europa Oil & Gas, Landore Resources, New World Oil & Gas

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.

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

Recommended

How to invest today? Look to the past, not the future
Investment strategy

How to invest today? Look to the past, not the future

The past few years have seen so many changes to our way of life that many people said we had entered a “new normal”. But as it turns out, the new norm…
18 Aug 2022
A new legal headache for Haleon
Stocks and shares

A new legal headache for Haleon

Haleon, GSK’s former consumer-products arm, spun off last month, has made a dismal debut on the stockmarket.
17 Aug 2022
Persimmon yields 12.7%, but can you trust it to deliver?
Share tips

Persimmon yields 12.7%, but can you trust it to deliver?

With a dividend yield of 12.7%, Persimmon looks like a highly attractive prospect for income investors. But that sort of yield can also indicate a com…
17 Aug 2022
Cineworld faces a bleak future – investors should stay away
Share tips

Cineworld faces a bleak future – investors should stay away

Weighed down by crippling debts and with consumers tightening their belts, Cineworld's future does not look bright, says Rupert Hargreaves. Investors …
17 Aug 2022

Most Popular

Investors should get ready for a political revolution
UK Economy

Investors should get ready for a political revolution

Liz Truss will beat Rishi Sunak, cut taxes, and then shake up the Bank of England, says Helen Thomas
15 Aug 2022
How to protect your wealth as inflation hits new record highs
Investment strategy

How to protect your wealth as inflation hits new record highs

UK inflation has hit a new record high of 10.1%. It's going to hurt, says Dominic Frisby. Here's how you can protect your wealth.
17 Aug 2022
Don’t listen to the doom-mongers – the future is bright
Economy

Don’t listen to the doom-mongers – the future is bright

With volatile markets, raging inflation and industrial unrest, it may feel like things are bad and likely to get worse. But the end of the world is no…
15 Aug 2022