Hello Frank
I am by no means an expert but it seems like they have to move a lot of gravel to get very little in the way of production. Not enough information about costs, etc. to offer any indepth annalysis.
Did I miss it, or how do they know the valuation of these stones?
Were they sold? Who did the valuations?
This seems a little teasy to me.
On a more related note, here is the full text of that DHK release kindly sent to me by an SUF investor. Thanks David.
May 28, 1998
DHK RESOURCES LTD.
DENTONIA RESOURCES LTD.
HORSESHOE GOLD MINING INC.
KETTLE RIVER RESOURCES LTD.
DHK Diamond exploration - Lac de Gras area NWT
Location of DHK Properties
Progress Report
Results from the 1998 exploration program carried out by Kennecott Canada
Exploration Inc. are:
Core drilling and kimberlite analysis-DO29N
An ongoing review of known kimberlites in conjunction with geophysics and
till sampling has resulted in certain previously drilled anomalies
being re-tested. The DO29N drilling (vertical hole) encountered 82 meters of
crater phase kimberlite which was processed at Kennecott's lab in
Thunder Bay.
D029N represents a geophysical anomaly approximately 100x120m (1.2 hectares)
and similar in size to the Aber pipes A-154N and A-21. This
pipe is located to the north of the DO29 hypabyssal kimberlite tested in
1993 where 1 micro diamond was recovered from five drill holes.
The DO29N kimberlite sample sent for analyses was heavily diluted with waste
rock. The total sample weighing 82.7 kg yielded 1 diamond >0.5
mm (macro) and 11 diamonds < 0.5 mm (micro) with an estimation of 14.5
stones per 100 kg. The stones recovered were transparent and well
preserved. Indicator minerals from the core are being probed and results
will determine the scope of the next phase of work on D029N.
Overburden Sampling - WI
The innovative use of a sonic drill for till sampling quickly and
efficiently extended the mineral indicator anomaly on the WI block. The mineral
chemistry (probe results) from the indicators are expected shortly.
Helicopter geophysical survey - interpretation detects targets Geophysics
have located untested targets on both the WI and DHK blocks
which may possibly be correlated to kimberlite indicator minerals found in
till sampling.
Continued exploration
Follow up ground based geophysics, till sampling and further sonic drill
testing are warranted with core drilling dependent on results.
Proving an economic diamond pipe in the NWT diamond fields is a challenge as
targets are often small and under deep overburden. As well,
geophysical anomalies indicative of kimberlite pipes can be similar to those
caused by iron and graphite occurrences. Also, there may be barren
phases in a rich kimberlite pipe and the outline is frequently irregular.
The recent encountering of a new diamondiferous kimberlite and additional
anomalies in previously explored areas indicates that the DHK
claims have much exploration potential.
The DHK claims are located in the heart of the Lac de Gras proven diamond
district where ore values range from $50 to $265USD per tonne and
even small pipes by African or Siberian standards, containing reserves of 9
million tonnes or less, may have in situ values of billions of U.S.
dollars. The Ekati Mine is scheduled for production in 1998 and the Diavik
Diamond Project is currently preparing its feasibility study and has
made, as a first step in the approval sequence, a project description
submission to the Federal and NWT governments.
DHK RESOURCES LTD.
"George O. M. Stewart"
George O. M. Stewart
Director & President
The sample sizes are much too small to be indicitive, but there is a very interesting ratio suggested.
Regards |
