Hello Andrew and Georges
I spoke briefly to HB yesterday and he indicated that the new pipe (last NR) was not found through geochemical sampling, as it is submerged in Lac de Gras. Rather, it was found through a distinct EM signature on an aerial survey.
He also said there were quite a few very interesting geochemical grains found in the area that do not correlate with known pipes. Also of interest, one of Dia Met's economic pipes in fact predominantly gave off G-9's rather than G-10's. As I posted previously, good chemistry is certainly a strong signal but by no means the exclusive means of determining which targets should be pursued. In fact, it is increasingly obvious that any kimberlite up here and any suggestion of a kimberlite, should be drill tested, as the exploration rules that seem to work relatively consistently in Africa, do not always apply here.
HB thought he might be back in town late next week so perhaps he will have some more interesting news or tid bits for us then if not announced before then.
Bishop's analysis seems far less thorough than those produced by JK which on diamond plays, also leave room for improvement. So, while I am sure (assume) Bishop understands the market, I would not base an investment decision on his calls if that is the level of geological information he gathers on diamond plays before making a recommendation.
Georges, regarding your consternation of SUF's continued slide in the face of improving earnings and NWT exploration. As I have repeatedly said, the Canadian market seems to have labeled SUF now with the M-1/DB's/RSA fiasco and without Canadian discoveries, consistent exciting NR's and a modern consistent marketing campaign, investors just do not feel confident that it is a stock that will hold its gains. Seniors and funds want a bank of equity not a bleeding ulcer. If capital can't be preserved and dividends are not distributed to support the share price, then in a nervous resource market, share performance will and has become a self-fulfilling prophecy. If there is no market faith, then only when management makes the fundamental changes and NWT discoveries, will the market psychology reverse. I don't believe transfer to an RSA exchange would make any difference in the short run, which is what most of us are concerned about. Such a move would force Canadian funds to limit their participation and would scare more senior investors. In the short run it would hurt share price not help it.
Look at ABZ and DMM, no prospects of profits for two or three years and they continue to hold their relative value. We have earnings they have none and no prospects for awhile yet share price is higher and stable. What's the difference? Market psychology and Canadian assets.
Come on Howard, find those pipes!!
JH's analysis is heartening, but he is only confirming what we, and the market, already know, and in the latter case, are largely ignoring. Notably, JH never assigns any value to Canadian speculative potential and rarely to African (which he did in this case).
The fact is, I don't think JH has a clue about Canada. If SUF was a registered RSA company, that would make any Canadian discoveries more difficult to develop. One reality very clearly coming home from the Diavik CEAA process is that any company that wants to expeditiously develop a diamond mine up here, had better increasingly show the north what's in it for them. The first step in that direction is looking northern. Taking on a northern persona and hiring predominantly northern personnel / management as Aber and Kennecott did in creating Diavik. They located here, will operate here, employ northerners and are demonstrating liberally how they will maximize to the greatest degree possible, northern economic opportunities and benefits.
A RSA company would have a real problem doing that, and I am sure DB's will wrestle with that alligator when they figure out how they will put Kennedy Lake into production and meet NWT economic diversification concerns. Diavik's methods and experience are I am sure, being closely watched.
Like Newfoundland and Alberta, the NWT will no longer allow its resources and future to be stripped away and shipped for other provinces, nations and people to reap the jobs and benefits associated with secondary processing and manufacturing. Inco is learning that lesson now in Labrador as Ottawa did when Alberta turned off the oil taps back in the 80's.
Sounds a little hard line, but it is a fact that any mining company will have to deal sensitively with if they hope to achieve their objectives.
Regards
|
