uthor: teevee -- Date:1999-02-23 08:43:42
Subject: apples and orangeites
I believe Mr. Kaiser's comments deserve a comment
.
"Mr. Kaiser's general assessment of the Deutsched
Bank Securities report is that it is "pretty good." He
does have some strong reservations asbout some
claims, however. In particular, he points to a
statement appearing on page four of the report: "It is
our experience, however, that getting lucky with one
diamond is possible, but that with three stones each
carrying a substantial part of the parcel's value the
likelihood that the very high valuatiion obtained for
the Snap Lake diamonds is grossly inflated is we
believe, small." Mr. Kaiser says, "that is complete
nonsense." He notes that diamond populations have a
random distribution....."
I suspect Mr. Kaiser is confusing Diatreme facies
Type I kimberlite with hypabyssal Type II kimberlite
(orangeite). Typical diatreme facies develope under
extreme phreatomagmatic conditions. These
conditions generally result in variable and significant
dilution from country or host rock, diamond
breakage, resorption etc. The explosive mixing with
country rock does lead to random distribution of
diamond within diatreme facies, and different
diatreme pulses. In sharp contrast, the emplacement
process of hypabyssal type II kimberlite, whether
South African style, near verticle dykes, or shallow
dipping ring dykes (cone sheet) at Snap Lake,
geologically infers rapid cooling, comparatively less
dilution, much less diamond breakage and resorption,
and grade continuity. CF results idependently support
grade continuity. In fact, it is the very consistant grade
continuity of Type II kimberlite dykes in South Africa
which allows mining and development with a high
degree of confidence once grade and value per carat
is established. regards, teevee |
