Hello Confluence and Gemsearcher
I looked as closely as I could at the Canabrava properties two or three years ago while Teck was still the operator. I also questioned HB about Brazil's potential at that time.
I was quite intrigued by what I found out geologically, historically and in light of their then recent exploration. I gather the Canabrava web site has since changed, but in those days they had a number of pictures of their claims which quite clearly showed volcanic cones literally all over the place almost completely overgrown by bush and jungle.
Geologically, the claims are on a craton believed to be the rifted western part of the Angolan craton if you subscribe to the theories of continental drift. In that regard, you are well aware of the quality and size of the stones that come from Angola. Historically, Brazil has produced stones of significant size and quality as alluded to in SUF's NR, and coincidentally, both cratons (or the same one) have produced some exciting fancies in sufficient numbers to be significant to mine economics.
When I was looking closely three years ago, the big staking rush had just recently been completed and DeBeers through Monopros I believe, had assumed large claims south and west of Canabrava. The dilemma Canabrava seemed to have from day one, was that they were neither capitalized nor staffed to exploit their claims, and as I said, they had optioned them to Teck.
I got the impression that Teck made a half hearted effort to explore their potential, but they were really out of their element. I suspect, the incredible number of pipes and Teck's lack of early success, simply did not mesh with management's risk/reward analysis and they must have cut their losses.
If memory serves, many of the pipes were found to be lamprolytes and all those tested to date either were not adequately sampled, or were simply found to be uneconomic. Whether this was a result of a limited and all phase representative sample size or truly low grades is of course unknown by anyone.
The undeniable fact is that some truly monstrous diamonds of exceptional quality have been recovered mostly from alluvial/fluvial sources in Brazil and some from just down river of these claims. There are significant paleogravel beds of exceptional depth (over 20m) and extent (km2) which presumably also contain eroded diamonds. The question as always is, can they be recovered in an economic operation?
The Brazilian government when I checked two years ago was enthusiastic about the possible development and economic exploitation of these resources and if memory serves, there is ample water and power nearby. Labour is of course dirt cheep and environmental concerns have not been traditionally uppermost on the minds of the Brazilian government. Put simply, the cost of operation with the possible exception of security should be modest.
When I suggested that Yamba represented the future of SUF the other day, I miss-spoke as clearly, there is even more significant potential on these Brazilian claims. We know that exceptional diamonds are there in large quantities. The question is can they be recovered economically?
While only the referenced claims were mentioned in the NR, Canabrava has significant other properties, or did, in both Brazil and Northern Ontario. It will be interesting to see if SUF is asked to take a look at these as well?
So now SUF has significant blue sky and secure tenure in two free markets. What's next, Australia?
I am looking forward to the photos on the web site, as the fancies I have seen from Brazil are truly exciting.
Regards and Good Luck.
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