Great minds think alike - must be why we took a flyer on MIY!
I haven't been following the NWT field news the way I used to eyewatch, I've been far too busy. Having said that however, I am aware of some interesting developments on a few plays, but I suspect the impact will be felt in the market next spring not this year. Too late in the N. Slave now.
Further to the east however, if you have been following TWG, you might do well to pick up some on any dips that occur. Of all the Canadian diamond exploration plays out there, I believe that one has the most potential to be a mine and not just a promotion. They have several huge diamondiferous pipes (only one drilled to date) and numerous smaller ones but still much bigger than any in Lac de Gras. The property is next to a natural deep sea bulk shipping harbor and trained labor and infrastructure is only 100km away. Few if any environmental concerns and Kennecott and DeBeers have staked huge claims around them.
The only pipe drilled to date appears to have the potential of producing larger than average high quality goods and initial grades are similar to most of the producing pipes in the RSA and Namibia.
If Jackson Inlet (TWG) becomes a mine, it will be a very high volume long lived one. Much longer than Ekati or Diavik and therefore should eventually offer investors higher multiples than Aber can or Diamet could have.
Several years of speculative bumps ahead so if that is your focus, you should have some good opportunities. Having said that, TWG is not a promoted play like ACA, Kensington or Majescore and unless some tout gets on board, I don't anticipate the huppla that usually results.
There is a strong likelihood that TWG will need to raise developmental capital this fall or sell a stake to deep pockets, so you should be aware of the opportunities and risks that would result.
There are a few metals, IT security and drug plays of real interest, but the PreCambrian Shield diamond speculative season is almost over. I wouldn't be jumping in on any play with moose pasture claims as lake ice strength is gone. TWG however is a High Arctic play and therefore an anomaly in that respect as it is in an Arctic desert with outcropping pipes, therefore drilling through ice is of no concern. There are no lakes hence no DFO issues, no caribou, etc. and no nesting areas, hence no wildlife issues. There is no physical limiting factor to summer drilling hence there should be fuel for the market.
The drilling season in the High Arctic is just starting and TWG will be drilling 8-10 of those other pipes. They have found large diamonds in till so if a core gets pulled with a rock hanging out, you can appreciate what the market will do.
The question is, will this spring's lousy market, simmering international tensions, building recovery and gold & oil jumps result in a summer rally or the usual dulldrums?
I'm betting there is a lot of nervous money on the sidelines just waiting for signals of a turnaround or speculative opportunity and therefore this may be one of the three or four years every decade when there is some real money made between July 4th and September 1st.
We'll see.
Good luck.
Regards
Vaughn |
