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Gold/Mining/Energy : Winspear Resources -- Ignore unavailable to you. Want to Upgrade?

To: Lorne who wrote (22250)	6/30/1999 12:47:00 PM
From: rick55	Read Replies (2) \| Respond to of 26850

From the notes I took at the Randy Turner talk last night, Randy also focused on the diamond market. At $100 per carat the diamond market is up. He mentioned 1.5 million "important dates" during the millinium, including the fact that all hotels in Vancouver are booked during the millinium mainly for weddings (lots of new diamond rings). He said that while he was in Antwerp the market was very active, almost everyone had a cell phone and they were all trading actively. The tone was steady, careful management of the company with care being taken to avoid wild stock price swings. They are in this for the long term, will develop a mine that will be a big producer among the largest in the world based on current results. Camsell Lake has a $181 value per tonne (US$)which ranks it as the fourth highest behind Marsfontein ($315), Diavik A-154S ($302) and Diavik A-418 ($207). He said there were 250 known kimberlite sheets in the Slave craeton (sp?) area and only 8 companies left in the area. Most of the smaller companies that alligned with a major company lost their rights to market the diamonds and any right to distribute information about the yeilds. Randy thinks this is a key play, to maintain the right to market the diamonds as there is a 25 to 35% markup when selling. He says that it is relativley cheap to mine them, the real money is in marketing. Winspear is not in the business to be taken over by a major company, they will stay in and sell their diamonds and maintain control of the company. They have drilled 103 holes over 2500 meters (did I get that right?). The average thicknes is 2.5 meters with 6 to 9 meters thickness in some areas. They are zeroing in on the source. The next decision is whether to do an underground bulk sample. This depends on whether they can get financing based on current and next sample results. If not they will probably do the underground sample. It would cost about $20 million to gather it but they'd have built the plant and paid for half of it with the diamonds recovered. They needed at least 500 tones to develop a mine that would run for 10 years. He says that they will exceed that when the tonnage report comes out. The cost to build and operate the mine with a best case scenario was $103 million and worst case was $150 million. That covers the plant and underground mining at 3,000 tones (?)per day over 10 years. We've definately got a mine and we should see steady stock value growth over the next few years. It is definately a long term venture. Best to all. Rick55