Junior miner sparkles on diamond discovery

Stockhouse Canadian Small and Micro-cap Stock Report for Tuesday, February 10, 2009

TORONTO (SHfn) - Diamonds were a shareholder's best friend Tuesday, while lithium results likely boosted the spirits of some.

Indicator Minerals (TSX: V.IME, Stock Forum) shares jumped 29% to nine cents on Tuesday after the micro cap explorer reported diamond results from a sample of the first kimberlite discovered on the Nanuq North Project in Nunavut. A total of 206 diamonds were recovered from a 152.75kg sample of the NQN-001 kimberlite. The largest stone measured 0.98mm x 0.72mm x 0.70mm. The majority of the diamonds described are characterized as white/colorless with no inclusions.

As well, shares of TUSK Energy (TSX: T.TSK, Stock Forum) skyrocketed 142% to $2.08 as the oil and gas producer/explorer announced that Polar Star Canadian Oil and Gas, a venture indirectly owned by the Teachers Insurance and Annuity Association of America, will acquire all of the issued and outstanding common shares of TUSK for cash consideration of $2.15 per TUSK share. The aggregate value of the transaction is about $257 million.

Reservoir Capital (TSX: V.REO, Stock Forum) shares powered 52% higher to 35 cents after the Serbian-focused resource explorer/developer said it has, through its wholly-owned subsidiary REV d.o.o., been awarded the Brodarevo-1 and Brodarevo-2 Energy Licenses, to develop run-of-river hydroelectric projects with a combined 48 megawatts of power generating capacity on the River Lim in Serbia.

Dynacor Gold Mines (TSX: T.DNG, Stock Forum), meanwhile, reported that for the 12-month period ending on December 31, 2008, it has registered record gold sales of 36,800 ounces from its Acari Property in Peru, which is 22% above its target of 30,000 ounces that had been announced previously. Gross sales reached $34 million, an increase of 143%, as compared to sales of $14 million in 2007. Dynacor Gold stock popped 64% to 23 cents.

Shares of Coniagas Resources (TSX: V.CNY, Stock Forum) soared 72% to 43 cents after the junior miner announced diamond drill results on the late 2008 field program for its Cyr-Lithium Property in Quebec. The best intercept was 2.04% Li2O over 7.5 metres true width.

And, Normabec Mining Resources (TSX: V.NMB, Stock Forum) Tuesday reported all remaining results from its last drilling program on the Pitt Gold property in Quebec, which included 12.15 grams per tonne (g/t) gold over 6.5 metres. Its shares surged 6% to 9.5 cents.