>>>But profit margins are profit margins, and I think as this play becomes better understood more $$ will come on board.
For one, the giant K-14 deposit (among others) is just about at surface. -Major cost savings in extraction. Then there's the accommodating climate, Government, Infrastructure (site access; available ammenities, equipment, supplies), Land/ environmental concerns ... One must use comparatively proportionate, i.e. equasional, grades when calculating values and mine economies in order to understand the profitability levels here.<<<
Jesse, you and I have been talking about this for over a year, mostly via email and both feel confortable with the numbers we need. For the record, the investment team who moved into this stock did our DD based on exactly what it would take for Ashton to move on. We like many wise folks believe that 25T per 100t plus good size stones and distribution will give us a mine based on the numbers we worked out. We would not have injected $$$ if we felt otherwise. If Ashton reports such numbers I believe that by now people have had time to educate themselves with Alberta and would not consider these numbers terrible. I hope Ashton reports 45ct plus, because many folks won't have time to place a buy order at these prices. If the stock tanks, cause Ashton reports 20-30ct per 100t, I will bet my life that I and many others will buy all the stock you wanna give us at $1.00 even if it takes liquidating all the other positions I have. Lets remember that K14 bulk sampling is the most advanced sampling ever taken in ADP and it is being watched by many. Red thinks we need .80-1ct per ton for the stock to continue moving up. Hope you're wrong because I think that most buyers, which are not too many yet, should not be expecting these counts. The international average for diamond mines. For Comparison an African diamond mine averages perhaps 23 carats per hundred tons with the richest going to 100 carats per hundered tons. Quality is also a variable that is highly crucial. From what has been said in a few sessions, over 50% quality is possible with k14
regards
Frank |
