Kaiser mentions KRT when he talks about the staggering potential of Pele
Excerpt from Kaiser Bottom-Fish Tracker 2002-29
Copyright 2002 John A Kaiser
October 15, 2002
Pele Mountain a top priority bottom-fish buy in the $0.20-$0.29 range for
its Wawa play
While we are on the topic of how helpful properly reported micro diamond
results can be in evaluating new kimberlite discoveries, I do need to
mention the Festival project of Pele Mountain in the Wawa region of
Ontario. Ever since Al Shefsky abandoned longest dimension micro diamond
reporting last year and adopted the full-blown sieve system I have been
plotting the micro diamond results for the various showings on the project.
The Wawa area is dominated by Archean aged breccias that appear to be
metamorphosed volcanic complexes of kimberlitic origin that have been
shuffled around since their emplacement more than 2.5 billion years ago.
Some of the units have very high micro diamond counts, which when reported
in the longest dimension format encourage predictions of Diavik style
grades. But when presented in a proper sieve format, it is clear that the
frequency drops sharply as size increases. Like Victoria Island, the market
has dismissed the Wawa diamond play as yet another science project that
wastes investor capital pursuing a non-existent quarry. The curves were
generally discouraging, but last summer some began to show up that looked
interesting, including the Mumm and Don Perignon outcrops. One that stood
out was Genesis. Pele Mountain recently excavated 4.5 tonnes from the
Genesis showing and ran it through a crude on-site processing facility that
managed to recover 0.52 carats for a recovered grade of 0.12 ct/t at a 0.8
mm bottom screen with the largest diamond weighing 0.085 carats. AMEC has
modeled a grade of 0.3 ct/t using the caustic fusion and mini bulk sample
data. This is substantially better than the 0.02 ct/t recovered early this
year from a 100 tonne sample taken from the Cristal showing, and modeled by
De Beers at 0.06 ct/t. The difference between the Cristal and Genesis
outcrops shows up clearly in the sieve based micro diamond plots, which you
can view at the following link:
diamondplay.com. Pele Mountain
now has a powerful micro diamond tool to map the diamond potential of the
complex Wawa rocks which Chuck Fipke has interpreted as ancient
metamorphosed kimberlite. The Wawa rocks are believed to be part of a giant
Archean volcanic complex, some of whose magma flows may have contained
diamond populations with a coarse distribution that has commercial
potential. Unlike the traditional pipe hunt, the Wawa diamond play is
similar to a volcanogenic massive sulphide play where the original
mineralized units have been moved around through post deposition folding
and faulting. The big hope for the Wawa play is that 50-100 million tonne
zones at the surface grading 0.2-0.3 ct/t and valued at $100 plus per carat
are intermingled with the lower grade zones. This potential has not yet
been demonstrated, but Pele Mountain's sieve based reporting is showing
that the quest is coming tantalizingly close to a breakthrough that
transforms the Wawa play from science project status into a serious play
with world class potential. Should this breakthrough happen, namely
demonstrating that these ancient Archean rocks have large stone potential
with 0.2-0.3 ct/t grade within large tonnages, the equivalent of the Fort a
la Corne kimberlites without a hundred metres of overburden hampering
exploration, the implications could be staggering. With an implied project
value of only $6 million reflecting about 30 million shares fully diluted,
and 100% ownership of a key part of the Wawa play, Pele Mountain is very
cheap. Although a definitive breakthrough has not yet been achieved, we are
so close that I have to declare Pele Mountain a top priority bottom-fish
buy in the $0.20-$0.29 range. Even if you do not want to bite quite yet,
watch this play closely, because there are several other very cheap juniors
involved in the Wawa region which would coattail on breakthrough news from
Pele Mountain. Pipe exploration is beyond the capacity of the typical
prospector, but peeling back the moss and prospecting Archean aged
diamondiferous outcrops is about as traditional as you can get, especially
if samples as small as 5 kg can give a good indication whether or not you
have hit the jackpot. If the code distinguishing the micro diamond loaded
Wawa rocks from those that carry macro diamonds can be cracked, Ontario and
Quebec will be crawling with prospectors.
Cracking the code of the commercially diamondiferous Wawa rocks
When I said the implications of Wawa breakthrough would be staggering, I
was not just referring to Pele Mountain's price appreciation potential, but
to the entire approach to diamond exploration in the Superior craton.
The preceding is an excerpt from a recent Tracker put out by John Kaiser of
the Kaiser Bottom-Fishing Report. It has been excerpted for redistribution
with John Kaiser's permission. [No statement or expression of opinion, or
any other matter herein,
directly or indirectly, is an offer to buy or sell the securities
mentioned. While we believe the sources of information to be reliable, we
in no way represent or guarantee the accuracy thereof, nor the statements
contained herein. Kaiser Trackers are available through an annual
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