Hello Kevin
SUF management is certainly confident that the source of the very large Yuri kimberlite boulders (20 meter diameters)has to be pipe(s) not dyke(s) in Munn Lake. They were just too large to have been sourced from dykes unless it is the "mother of all dykes". Even if the value of any SUF/KLA/IAR pipe ore found ultimately proves to be .75% lower than that of WSP's dyke, the open pit mining rate of any SUF/KLA/IAR pipe(s) should exceed WSP's dyke by at least a factor of 4 with recovery costs per tonne roughly 29% lower.
However, it is worth remembering that the published chemistry of this play is more attractive than that of the WSP play, so it may be possible that SUF/KLA/IAR might ultimately find similar grades and values at larger mining volumes.
No matter how valuable WSP's ore ultimately proves to be, unless they find a pipe(s), they will probably be limited to mining roughly at the rate of 5,000 tpd which effectively limits their share values. In addition, while there is certainly a large and aggressive promotional machine behind WSP, unless a pipe or pipes are found, the deposit's geology will always need to be explained, and investors like simplicity. WSP have other properties which may ultimately prove to also have economic kimberlites but that is conjecture at this point.
Regardless I certainly don't think it is a competition, and frankly hope WSP develops a mine, dyke or pipe. The fact that several could be developed at Kennady Lake, Munn Lake and Snap Lake makes the economics of supply and operation of all the mines more attractive. It might possibly make economic sense to have one power plant for all three mines or for NCPC to run power to each. Sharing of other infrastructure might also be an option. In addition, it might be attractive for WSP to have its ore processed by one of the larger plants. Who knows? Maybe adding Snap to the deposits found at Munn and Margaret will attractively enhance the economics of SUF/KLA/IAR's play. SUF or Kennecott might possibly make a friendly buy out offer and since I suspect WSP really is not interested in actually being an active mining company, or in borrowing 90 million to become one, their management and shareholders might find such a prospect attractive.
In any respect, SUF has certainly proven that they do not have a promotional bent. Most air time or market attention a find at Munn and Margaret Lakes will typically receive, probably will come from the management of KLA who's record speaks for its self. SUF management will present their results at shows and along Bay Street, and IAR management will wave the flag and make some calls, but Mr. Appelgate will hire a brass band. I suspect we can all be assured, the market, but more importantly, the small investment community, will be made well aware of the play by KLA's promotional machinery.
For all intents and purposes, right now, both plays are all conversation and arm chair philosophizing by pseudo experts and enthusiastic shareholders with stars (diamonds) in their eyes. However, like WSP, when there is a story, KLA will more than likely make sure it is on everyone's lips.
Good luck and Regards
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