Kaiser, one of the BIG newsletter writers on mining stocks, owns and recommends Claymore in his latest newsletter. He figures, Claymore could hit $10 if we hit kimberlite. I took the liberty of posting it here.
Walter Kalin
Another company that spent years spinning its wheels is New Claymore Resources Ltd (NCS-V: $1.70), whose 3.8 million
acre Alberta diamond acreage will finally be tested by the truth machine in 1997. Kennecott is earning a 60% interest in the
414,000 acre Masumeka Block in the Hinton area where over 40 airborne mag anomalies have been identified as potential
kimberlite targets. Given the sedimentary stratigraphy of this area, there do not appear to be too many alternative explanations
for these targets. Hopefully they aren't prehistoric oil derricks. Kennecott plans to start drilling 11 of these in January. No
kimberlites have been identified yet, but micro diamonds have been found in stream sediments suggesting a local source.
Claymore nets 22% in this block, and with only 4.8 million fully diluted shares, is quite capable of going double digit if a field of
diamondiferous kimberlites is identified in Alberta. Claymore's shareholder base, which includes myself, appears to have
mutated into true believer status, so there is not much paper around below $2. At the same time there are not many bids either,
so speculators should be cautious when trying to accumulate this stock. To break out New Claymore needs a kimberlite
discovery, but for this play to really start cooking we need evidence that diamond macro/micro contents are comparable to the
NWT. |
