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by Will Purcell

Diamond and specialty minerals stocks continued to stagnate on Canadian stock exchanges Monday as the TSX Venture Exchange fell 0.36 point to 656.04. Ewan Mason's Star Diamond Corp. (DIAM), which slid 0.5 cent to five cents on 136,600 shares today, remains a listless trader as investors await word that the company has been able to finance a prefeasibility study of its Fort a la Corne diamond project in central Saskatchewan.

The good news is that a deal could be close. "Busy, busy, busy," is how Mr. Mason, chairman and chief executive officer, describes his recent days, as he beavers away on the final touches for a financing. Star Diamond holds a 100-per-cent interest in the project, having acquired the 75-per-cent share held by its former co-venturer, Rio Tinto Exploration Canada Inc., a year ago.

After a two-year legal battle to confirm its 75-per-cent interest, Rio Tinto decided to give it up rather than spend a few hundred million dollars more on a feasibility study. Mr. Mason and his crew think they can get to feasibility for far less cost -- and he now estimates the bill to prefeasibility at just $3-million or so. Despite the modest costs, the hunt for cash has dragged on, month after month, with no end in sight. "I am trying to get the financing done," Mr. Mason sighs, adding that "it is just complicated." Nevertheless, he is optimistic he will have news to cheer shortly.

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