John, an interesting analysis made by John Kaiser.
"For the Buffalo Head area play to really catch on we need to see three key developments: a)evidence from Ashton that kimberlite with abundant diamonds with good quality and size distribution exists, thereby supporting the craton's potential for world-class grades and values,b) confirmation that kimberlites exist outside the Ashton holdings, and c) evidence that the non-Ashton kimberlites have significant diamond content. If Condition A is not met in the next
few weeks when Ashton releases its mini-bulk sample results, the market will have to wait until the second quarter of 1998 when the results from new pipes and bulk samples become available. Market action in this case would be restrained and the tug-of-war between skeptics and believers would continue. Once Condition A is met, a mass conversion experience will cause the Buffalo Head diamond play to go nuts, much as the Lac de Gras diamond play went nuts in 1993"
Basically, the audience, meaning investors, John K, Fagan and other broker/analysts like to hear about quality. Any indication of good gem quality over 75% is IMO excellent. As well, it would be nice that K14C does have a spectacular count. However, the market has discounted the fact it will not. Ashton's announcement of extremely high diamond counts for the K14C portion of the K14 pipe in the Buffalo Hills area, if we recall, it turned out, the extraordinary diamond counts had been artificially created by Ashton when it accidentally crushed a stone or stones of unspecified weight.
Lets hope the predicted NR scheduled to come out any day highlights
1. Better than expected results in other pipes, like K6 and K14B
2. Some indication of gem quality and colour
3. 1000 bulk sampling plans on K14 and maybe other pipes.
4. Expansion of local Canadian DMS plants, would be an indication of a busy year and faster processing of samples.
5. Plans to pursue other anomolies.
Hope that helps, everybody, lets hope for a good 1998.
BTW, I still believe Ashton is a long term play, and like you John, it will be volatile in the next 12 months. |
