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South African gold producer Harmony's build-up for a potential hostile £5.5 billion Russian-backed bid for Gold Fields, the fourth largest gold miner in the world, has rekindled excitement in the resources sector

It is not all plain sailing, but enough momentum remains at the junior end for prospectors and advisers to come up with new float plans.

With at least two African diamond hopefuls, Petra Diamonds (Angola) and Namibian Resources (Namibia) testing 12-month highs, Firestone Diamonds at 99p almost double June's Growth Company Investor recommendation and SouthernEra Diamonds at 35p 45 per cent up since my mention last month, gems continue to beguile. Broker Collins Stewart is planning a new diamond float and more are being considered elsewhere.

Phil Edmonds is also preparing an African float. It is likely to be gold, platinum and/or tantalum. This would add a fifth to his Aim companies, one of which, Southern African Resources, raised £15 million at 30p for its Leeuwkop platinum group metals project in South Africa's Western Bushveld. Critics question the feasibility of working at the high heat levels deep underground there, but backers like it.

It is rumoured (again) that Richard Budge, colourful ex-boss of RJB Mining, hopes for a comeback. Budge unsuccessfully tried to make a go of Yorkshire's Hatfield colliery in Yorkshire, but observers suggest strong coal prices and Canadian backing could make it work.

Keeping coal fires burning

Coal is now a hot item. Entrepreneurial Asia Energy's Bangladeshi coal projects have lifted it from April's 75p Aim float price, when Growth Company Professional recommended a punt, to 289p.

Partial profit-taking might be prudent, while keeping a chunk for the longer term. Meanwhile, producing companies with short-term contracts can benefit quicker from rising coal prices than those on long-term deals.

Two British players, UK Coal at 160p and ATH Resources (with open-cast mines in Scotland and France) at 155p, will not show instant gains, but could cash in when new contracts are negotiated. Speculative possibilities are offered by Palmaris Capital at 14.25p, with development assets and significant stakes in private Mining Scotland group and Aussie gold play Perseverance.

Centurion's Egyptian winner

Oil still takes centre stage, in particular Aim-quoted Centurion Energy. Said Arrata, boss of the Calgary-based group, has cheered punters with drill tests yielding 10.4 million cubic feet of gas a day at its Gelgel 4 exploration well in Egypt.

Arrata says Centurion could produce 250 million cubic feet of gas, oil and liquids a day by the end of 2005, with a contribution from Ezzaouia in Tunisia. The company, which raised £2 million at 138p and has arranged £20 million of finance, wants £56 million-plus for development projects.

Growth Company Investor recommended Centurion at 57p in June last year. At 295p, taking some profits looks wise, but keep a portion.

Funds back A & R

Broker John East has persuaded institutions, including Framlington, Artemis and RAB, to stump up £2 million at 10p for Angus & Ross, the former tantalum hopeful now focused on gold in Brazil's Matto Grosso and Greenland's Black Angel zinc mine. Imminent assay results from Brazil could support theories of two million oz of gold, while bulls suggest Black Angel could hold from three to nine million tonnes of ore at 12 per cent zinc. A punt at 10.75p.

On the nickel bandwagon

Melbourne mining entrepreneur Chris Kyriakou, also of telematics flop QwikTrak, has attracted backing from RAB Capital for Toledo Copper, his Aim vehicle with ambitious nickel and copper projects in the Philippines.

Kyriakou, who has links with the powerful local Ramos family, says Japanese contracts could help finance the nickel, while the copper project alone will cost more than £90 million. At 2.1p, Toledo is worth a flutter for thick-skinned punters.