Canaccord Daily Letter for today: (excerpt)
* Winspear Resources (WSP : VSE : $1.32 : Issued 33.9M)
Last Thursday (July 9), Winspear announced an expanded exploration
budget for the summer field program in the NWT. Of the $2.5M budget,
about $1.5M will be spent on the Snap Lake diamond project, which has
been the focus of market attention since the June 15 release of the
bulk sample grade (1.14 c/t) and the June 22 report that average
values were determined at US$301/carat.
The Snap Lake program includes:
* A scoping study by MRDI Canada (a division of H.A. Simons) will
study the possible mining approach to the NW dike, and processing and
infrastructure requirements. The study will address capital and
operating cost parameters, review the known geological data base, and
make recommendations for future work on the property.
* A $0.4M till sampling, geological mapping, and prospecting program
will focus on the Snap Lake area. Dr. Nick Pokhilenko of the Diamond
Research Institute at Novosibirsk, Siberia, will return to the project
with his team, who have largely been responsible for the definition of
indicator mineral trains, prospecting discoveries, and interpretation
of the geological setting of the Snap Lake kimberlite, and have
complemented the work of Winspear's seasoned explorationists.
* The summer program will also include $1M for drilling, with details
of this portion of the summer's activities still being planned. We
believe that some delineation and geotechnical drilling can be done on
the west peninsula itself, and possibly some from islands in Snap
Lake, although a grid-based delineation drill program would have to be
carried out from the lake ice next winter.
At this juncture we do not know if Aber will opt back into the joint
venture, and if not, Winspear's interest will continue to increase
from 57.3% to about 68%. Elsewhere, Winspear plans a $0.5M program on
the Carat property (can earn 70%), which adjoins BHP/Dia Met on its
northeast boundary, and a $0.5M program on the Hilltop property on the
southwestern side of the Camsell Lake property.
The high trading volumes since June 22 have largely subsided, and the
stock has pulled back from the $2.04 high. We understand that between
June 22 and July 8, Winspear trading accounted for 13% of the VSE
trading volume and 25% of the trading value. In absolute terms, the
Company's market capitalization of just under $50M is not particularly
high, but the stock may be less than vibrant during these dog days in
the summer market. Once we see what type of drill program is
proposed, specifically, we will have a better idea of the potential
for speculative activity. As we've stated earlier, if there is a
diamond mine at Snap Lake, it is going to have to be made rather than
found" (as in a simplistic pipe model). Please refer to our comments
in the June 24 Daily Letter outlining a very hypothetical mining
scenario for Snap Lake.
David James (204) 988-9602
The information contained in this report is drawn from sources
believed to be reliable, but the accuracy and completeness of the
information is not guaranteed, nor in providing it does Canaccord
Capital Corporation ("Canaccord Capital") assume any liability. This
information is current as of the date appearing on a report within
this Site and Canaccord Capital assumes no obligation to update the
information or advise on further developments relating to these
securities. The information contained in the report is directed _only_
at, and any securities being offered are available _only_ to, persons
resident and located in British Columbia, Alberta, the Yukon and
Ontario. Canaccord Capital, its affiliated companies and their
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they are associated may, from time to time, hold the securities
mentioned at this report.
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