Spark.. and all wolves.
Winspear is an interesting story and one I have mentioned in the past to the usual chuckles. :o)
However....I urge anyone truly interested in a very good speculative resource play to do some DD on the company through SI and Stockhouse and brokerage/analysts.
Winspear most likely now has established that they will have the third Canadian diamond mine up in Northwest Territories. tHis has come after a painstakingly long process of drilling/analysing/drilling/ yadda,yadda,yadda........
Now.....for those that don't have any diamond knowledge here's the scoop in a nutshell as I understand it. *** please note: I know steel not diamonds...I believe that for the most part the following info is correct or at very least portrays what the process is that is involved. In reality it is much more intensive of course.
Diamonds are found in the world in a " host " rock called kimberlite. Kimberlite is found in many areas of the world as a result of some pretty intense earth activity many,many moons ago. Molten lava rock, extreme heat, amazing pressure underground all contribute to the formation of kimberlite. Now....as kimberlite is being formed, many times another amazing phenomenon occurs which is the creation of diamonds. Carbon that is placed under such heat and pressure that it " crystalizes " to a degree into diamonds. The key of course is to first find kimberlite. Next, drill in the ground to see how much kimberlite you actually have ( ie: tonnage from the area of the claim)...and then, take samples of this kimberlite and crush it and try to find those wonderful gems " stuck " in the rock. If you are lucky enough to find the stones...then you need to get them valued. Then, after they are valued....much more analysis is done ( something called caustic fusion analysis which I really can't explain because I don't really know what it involves). Some sort of distribution curve of the " occurance " of the diamonds is done where then you can ascertain what the probability of having diamonds in ALL of the kimberlite you have is. THen you find out how much it would cost to mine the rock and if your diamonds are valued high enough, and you have enough tons of " host " kimberlite rock....you can have a profitible mine. Simple huh?
now...this is a very, very ROUGH explanation of the process but it is just to give you a quick idea of what they are trying to do.
so far....Winspear has proven they have the tonnage....they have proven they have diamonds...they have proven they have some pretty good values but they are awaiting the results of a second 3,000 ton sample as to valuations probably next week. This will tell the tale for Winspear and is a real good gamble in my opinion. Much of the risk is out of the play on the downside and although when things seem to good to be true..they usually are:.........the stock price, in mine and MANY,MANY other's minds very cheap for what they have mostly because the market is no longer taking a large risk on resource plays until it is a " sure " thing.....well, if we were pre- Bre-x days...you can be sure Winspear would be trading over $15.00 right now at least.....however.....she is sitting at $4 and change close to the eve that may very prove that it is sitting on perhaps one of the richest diamond properties in the world....this is not hype...read other people's thoughts other than mine please.
So.....Spark...do I think it will fly??? yes......but it is a gamble..one worth the risk I think.
Please go to the Winspear thread here on SI and Stockhouse for some info. SI sight is great.
hope this helps guys.....I have owned the stock for close to a year now and have traded it many times in the time between but am holding for the due or die results.....no pain...no gain.
all the best.
sg |
