Received the following report on the AGM today from a friend who attended:
Jan was to report on AK / CJ, and Carl Verley was to report on Baffin. The mood was upbeat from all principals and questioning from attendees. The negative effects from the Aber debacle appear to be much greater than one would think. Jan has followed Aber at several locations and stressed that the Mountains have suddenly become much steeper. They are convinced that it is just a question of time before the pain eases and the perception firms up.There are still a number of targets to be follwed up on AK / Cj, but a recent site visit by one of the Monopros guys resulted in a recommendation to start the nexr field work after freeze up, instead of now.
Significantly to me it was clear that DeB in every aspect is more concerned with doing it right and doing it economically than with doing it to the Shareholders dream schedule, and that applies to everything. They are meticulous and conservative in their care for accuracy, which is paramount when using small samples to provide information to model grade and value extrapolations, which they will do when all physical examinations have been done checked and rechecked. These modeling results will then lead to the decision to proceed with final feasibility studies, and that is expected by the end of this year.
The option for DeB to buy out 51% of the GOR was written into the original JV agreement and the deadline was Sept 15, which accounts for this week?s decision. I hadn?t noticed in the release, but was reminded that the Gor disappears when DeB becomes vested in it?s total 51%.
Jan explained for example that the machine automatic process of diamond picking is not perfect since X-rays are used to fluoresce the diamonds, and the better quality stones, and also the stones with surface coating react less well to the X-rays, so hand picking has to be done also, and even then the tailings have to be rechecked to make sure nothing is missed. Also every piece of diamond has to be examined to see it it is a whole crystal or only a piece of a broken one. All of this is painstaking slow work, the accuracy of which is critical when it is to be used for major decisions. So be patient guys.
Carl?s enthusiastic presentation on Baffin was also interesting. The original 280,000 acres has now been expanded by staking to more than 800,000 acres, which accounts for the recent announcement on something that has been under wraps for some months. A justifiable delay IMHO.
At this stage the most that can be said is that Kimberlite bodies have been found rather quickly, and the potential for finding more is enormous. The set up is different than the AK / CJ in the nature of the ground at surface, with kimberlite outcropping. The mineral trains are promising, but analysis is in the preliminary stage. The people are very enthusiastic, and the expenditure so far to achieve a 50% interest I reasonable, and interestingly access is way better than the other project since it is by sea and open for about 7 months of the year, without the limitations of the Ice Road.
Sample results being awaited with significant further work to follow in the Spring.
That?s all that comes to mind right now. |
