A thorough examination of the CDR/SUF NR is in order, as I believe some may have missed the significance of the information in the NR:
The purpose of this drill program was to identify the cause of magnetic anomalies coincident with surface chrome spinels on the Yilgarn project. 16 aeromag anomalies were drill tested. Through CF and subsequent petrological and kimberlite indicator mineral probe, 10 of these aeromag anomalies were confirmed to be caused by kimberlite/lamproite intrusions:
"Preliminary petrologic examination of extremely weathered and leached drill chips indicates ten anomalies are caused by ultrabasic intrusions."
From this perspective, the drill program was a resounding success. The chrome spinels found at surface coincident with aeromag anomalies have now been determined to be caused by kimberlite/lamproite at 10 of the 16 anomalies drill tested.
Another observation: this project (and other Caldera projects) are in a highly weathered environment:
"Weathering in the area is extreme and is reported up to depths of 100 metres."
Because of the extreme conditions, only chrome spinels are preserved at surface. However, CDR/SUF have now confirmed and analyzed other kimberlite/lamproite indicator minerals:
"The presence of kimberlitic chrome spinels with diamond inclusion chemistry, and ilmenite and pyrope garnets has been confirmed in the samples."
This is very encouraging to recover these indicator minerals in this extremely weathered environment. It was thought that SUF/CDR might not be able to identify indicator minerals in drill core because the minerals would be unidentifiable. They were considering drilling deeper to get unweathered samples, in order to identify these indicator minerals. Encouraging that they've identified them in shallow drill core. Deeper drilling will happen, but they can now analyze the indicator minerals without waiting for unweathered material.
This discovery of latest indicator minerals with diamond inclusion geochistry was so encouraging that SUF/CDR have shipped additional drill samples for caustic analysis:
"Additional drill samples have been sent to Lakefield for processing."
The following is discouraging:
"No microdiamonds were recovered from the small samples."
However, we should take a closer look at the NR:
"Thirteen eight-kilogram drill samples representing 10 targets were sent to Lakefield Research Limited for caustic dissolution."
These samples were very small and distributed over 10 targets.
Also, microdiamond(s) were found in surface samples, so we know there are diamonds:
"However, one of the most encouraging indicator mineral suite results came from the same target where a microdiamond has been previously recovered from a loam sample collected at this location."
The question is, how diamondiferous...
At .07 (C$3M market cap.), CDR is at worst a hold.
It may be a buy for speculative accounts at .07 for the following reasons:
- Larger drill core samples have been sent for caustic fusion analysis. The hope is that microdiamonds will be found in these samples.
- Caldera has identified 19M of highly weathered kimberlite/lamproite material on the Tabletop project. CDR is negotiating with majors to JV this and other properties. Once a suitable JV partner is identified, a drill program is planned for next year.
- The Mt. Carulina project has a geophysical target that is similar in appearance to the huge Olympic Dam project (CU/Uranium/Gold), and in the same geological environment. In order to earn an interest, Inco must drill within the next 12 months.
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Lots of activity coming up in the next year, including drilling of very prospective diamond and base metal projects.
It's tax-loss selling time, which is the time to be buying CDR. The drill plans are in the works for at least 3 projects next year...
Geoff |
