To all MPV followers:
Please read the following eloquent and highly informative discourse concerning the state of affairs at the company. These are the facts and it seems very obvious to me that MPV is the only game in town in the NWT outside of the two highly advanced stage projects Aber and Diamet. MPV represents true value, with an upside /downside risk reward ratio favourably skewed in favour of the investor, not the house.
Exploration Will Continue Through the Balance of the Year
Numerous Mineral Trains Yield Multiple Targets
Mountain Province Mining Inc. (MPVIF-NASDAQ, MPV-VSE)(U.S.$3.25, C$4.80)
Camphor Ventures Inc. (CFV-VSE)(C$1.49)
De Beers Consolidated Mines Ltd. (DBRSY-NASDAQ) (U.S.$25.75)
These three companies, firmly entrenched on our 1998 Recommended List, represent our continued endorsement of the world of gem-quality diamonds. We like the advance that has now taken De Beers up from our recommended price of U.S.$20.375, a 26.3% increase since the start of the year. Furthermore, we continue to strongly recommend both MPV and CFV, as the more time passes, the sooner we will learn of the raw wealth contained in the four diamondiferous kimberlites, the AK5034, Tesla, Tuzo, and Hearne.
With the test sample now completed, over 200 tonnes of diamond-bearing ore is being processed with the results expected between late May and late July. It is not certain exactly which of the bodies will be reported first but we would like to see the Tesla and AK5034 come first, because they are less rich than the Tuzo and Hearne. From a "drum-roll" perspective, it would be great to see the first two come in at around U.S.$80-$100 in value-per-tonne, so as to set a "low water mark", albeit a commercial one, with the highly impressive numbers coming later from those two spectacular deposits, the Tuzo and Hearne.
Where Are Those New Pipes?
The De Beers wholly-owned sub, Monopros Canada Ltd., has been exploring for about three weeks as of the time of this report and from what we gather, it has been frustrating for these highly-professional explorationists due to what we hear has been their inability to rely on data previously collected during the pre-Monopros period. The first ten or eleven targets were drilled without success but the next five targets have been selected solely from geophysical and geochemical work completed by Monopros. There would appear to be a high degree of optimism (finally!) concerning this phase of exploration.
However, whether new pipes are found tomorrow or a week from now or next winter, we are on-the-record that more diamond-bearing pipes WILL be found. As was stated earlier and verified in a January meeting with Bill Jarvis with one of the analysts, the richest pipes in the AK Claim have yet to be found. We see very little risk in making that statement, as Monopros themselves have already gone on record as expecting between 4 and 8 additional kimberlitic bodies.
Based on analysis of G9 and G10 kimberlitic pyrope garnets, some of these deposits carry an extremely high probability of being highly diamondiferous.
So - and listen carefully - do NOT carry the opinion that the share price is in trouble because they have been unable to find more pipes after a month of drilling. These are highly competent explorationists. They will go back to the drawing board, if required, and inevitably locate the additional deposits. Furthermore, with 40-50MM tonnes of diamond-bearing rock under their belts, at U.S.$100 per tonne, that would represent U.S.$4-$5 BILLION of "insitu" value. Based upon tonight's close on the NASDAQ, that capitalizes the 4 deposits at a little over U.S.$400MM.
There's a LOT of room for upside here and we re-state our "Aggressive Buy" on both MPV and CFV.
Drilling on these five new targets is underway as of yesterday and they will complete them before spring break-up. Speaking of break-up, there will be about a 4-week hiatus followed by an aggressive summer exploration program on land-based targets already identified by De Beers. Our thinking is that this will fit nicely in enhancing market hydraulics as the combination of test sample results and exploration intensifies investor interest in May and June.
For many of you, it's been a long haul and you've watched other stocks such as the Internet-related issues go into hyperdrive, but we sure feel a lot more comfortable owning MPV, CFV, and De Beers than in owning the S&P 500 at 28.4 times earnings.
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