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Stones still beguile, even in a newly more volatile resources sector, which is part of the reason why Kimberley Diamond Company, aiming to produce 700,000 carats a year from Australia, is the latest venture to target AIM.

Headed by entrepreneur Miles Kennedy, Kimberley, 50p Down Under, hopes its holdings in Western Australia’s Ellendale field will make it the world’s fifth largest diamond producer. Broker Numis plans an introduction soon for the company, which holds 54 per cent of larger Aussie group Blina Diamonds, a potential AIM candidate at 20p.

Another AIM-quoted Australian, Gravity Diamonds, where mining giant BHP Billiton holds 9.6 per cent, is drilling in Congo’s Luebo area. Also prospecting Down Under, Gravity, a punt at 23.5p, expects drill results by Christmas, when BHP could decide to earn up to 60 per cent.

Prospective Congo gems have prompted BHP to pay £4.5 million at 30p for 12 per cent of Toronto and AIM-quoted SouthernEra Diamonds. BHP can also earn 25 per cent of any of SouthernEra’s six Congo permits by managing and bulk sampling any kimberlite finds, which is a coup for Southern’s new boss Alasdair MacPhee, and could add to the shares’ recovery potential.

Firestone Diamonds, off its best at 143p but above last year’s recommendation at 41.5p and worth holding, has bought 78 per cent of John Teeling’s African Diamonds, now 50.5p, for its Botswana interests. As revealed here, broker Canaccord plans to float Zambian-focused emerald miner Gemfields Resources, backed by India’s powerful Gupta gem trading dynasty and the controversial Frank Timis, with a £65 million tag (see page 17).

Timis chairs another gem player, Sierra Leone Diamonds, which has £12 million and is probing diamond prospects there. Even so, with new directors and some non-diamond properties too, it might repay a speculation at 54p.

Petroceltic’s desert song

The Isarene area of Algeria could be the making of Petroceltic International. So say bulls of this entrepreneurial AIM-quoted oil and gas exploration play. These days, Algeria is attracting companies large and small from around the world and Dublin-based Petroceltic is among them, with 25 per cent of two blocks in the Isarene permit area.

Sonatrach, Algeria’s state-owned energy group, holds the other 75 per cent and previously estimated 30 million barrels of oil and 400 billion cubic feet of gas in the prospect. Petroceltic’s boss John Craven argues that 400 million barrels of oil and four trillion cubic feet of gas would be more realistic.

With nearly £12 million cash, £2 million royalties from Kinsale in the Irish Sea and no debt, Petroceltic should start drilling early next year. BP has blocks next door.

Petroceltic, with other projects in Italy and the Donegal Basin, claims a present value of £105 million or 19p a share, with ‘un-risked upside potential’ of £1.44 billion. It is a punt on next year’s drilling results.

Many dimes in nickel

Buoyant nickel prices and Inco’s £5.8 billion bid for Falconbridge has provided a fair background for AIM-quoted Zambezi Resources. It has floated its subsidiary Zambezi Nickel, raising £300,000 at 10p on AIM, with attractive prospects in Zambia. Warrant and option exercisers have put £4.5 million into Turkey-focused European Nickel, now 37p and both might reward a strong-nerved flutter.

Iron deal for Anglesey

After slow progress at Anglesey Mining’s zinc, copper and other minerals prospect at Parys Mountain in North Wales, the shares have perked up to 14.75p on hints of new developments there and a new option deal to earn 70 per cent of Canada’s 100 million-tonne Labrador Iron Mountain project.

Half of the Iron Mountain claims are held by Energold, a company controlled by Anglesey chairman John Kearney. Anglesey will seek to raise money soon. For gamblers only.