Abaddon & New Claymore
Abaddon Resources Ltd (ABA-V: $0.06) and New Claymore Resources Ltd (NCS-V:
$0.18) did not even blink when Chet Idziszek's Buffalo Diamonds Ltd
(BUFD.U-CDN: $0.25) produced its semi-annual discussion about the garnets in
Alberta's Calling Lake area. A year ago the market was swirling with enough
rumours about a significant discovery near Calling Lake that Buffalo Diamonds
was able to raise over $2 million on the basis of a tiny land position. The
discovery turned out to be a single micro diamond chip found in a till
sample. Since then Buffalo Diamonds has optioned the Varlaam property from
New Claymore which borders the western part of Calling Lake, a large shallow
lake ringed with cottages and designated as a bird sanctuary. BUFD has
reported that beach sediment sampling on the shore of Calling Lake yielded
over a thousand pyrope garnets along with other kimberlite indicator minerals
such as chrome diopsides, eclogitic garnets and picroilmenites. Of the
pyropes SRC identified 66 as G10 garnets, an indicator of peridotitic
diamonds. The Calling Lake area now has the highest concentration of
peridotitic diamond indicator minerals in Alberta. What is noteworthy about
these indicator minerals from two locations on the western and southeastern
shores of Calling Lake is that they are subangular to angular. This suggests
a local source. BUFD does not specify whether the samples came from its 100%
owned ground or the optioned Vaarlam property. BUFD can earn 70% from New
Claymore by spending $2 million by September 2002. But BUFD has conducted an
airborne magnetic survey on the Vaarlam claim that has generated targets
currently being prioritized for drilling this fall and winter. Six years ago
these circumstances would have launched BUFD, New Claymore and neighbouring
property owners such as Abaddon into a major speculation cycle. Today nobody
cares. Why? First of all, the Alberta diamond play is in the worst doghouse
imaginable. Ashton, in the midst of a $7 million geophysics and sampling
program, has slumped to an all time low of $0.51. Has Alberta's diamond
potential been scientifically discredited? No, Alberta's sin is that it has
not yet delivered a world class diamond pipe. Secondly, BUFD suffers from a
credibility problem. Its actions to date do not suggest a keen understanding
of the diamond exploration game. Thirdly, BUFD does not appear to have
generated any obvious targets, creating the suspicion that the pipes are
located in Calling Lake. That is bad news, because Calling Lake itself is off
limits for the development of a mine. But diamond exploration is full of
surprises. BUFD may yet plod onto a significant pipe. I wouldn't dump any of
the Calling Lake juniors quite yet. What about buying them at dirt cheap
prices? Only for people who enjoy extreme bottom-fishing.
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