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

To: jerry janko who wrote (400)	9/21/1999 7:20:00 AM
From: jerry janko	Read Replies (1) \| Respond to of 531

Abaddon & New Claymore Abaddon Resources Ltd (ABA-V: $0.06) and New Claymore Resources Ltd (NCS-V: $0.18) did not even blink when Chet Idziszek's Buffalo Diamonds Ltd (BUFD.U-CDN: $0.25) produced its semi-annual discussion about the garnets in Alberta's Calling Lake area. A year ago the market was swirling with enough rumours about a significant discovery near Calling Lake that Buffalo Diamonds was able to raise over $2 million on the basis of a tiny land position. The discovery turned out to be a single micro diamond chip found in a till sample. Since then Buffalo Diamonds has optioned the Varlaam property from New Claymore which borders the western part of Calling Lake, a large shallow lake ringed with cottages and designated as a bird sanctuary. BUFD has reported that beach sediment sampling on the shore of Calling Lake yielded over a thousand pyrope garnets along with other kimberlite indicator minerals such as chrome diopsides, eclogitic garnets and picroilmenites. Of the pyropes SRC identified 66 as G10 garnets, an indicator of peridotitic diamonds. The Calling Lake area now has the highest concentration of peridotitic diamond indicator minerals in Alberta. What is noteworthy about these indicator minerals from two locations on the western and southeastern shores of Calling Lake is that they are subangular to angular. This suggests a local source. BUFD does not specify whether the samples came from its 100% owned ground or the optioned Vaarlam property. BUFD can earn 70% from New Claymore by spending $2 million by September 2002. But BUFD has conducted an airborne magnetic survey on the Vaarlam claim that has generated targets currently being prioritized for drilling this fall and winter. Six years ago these circumstances would have launched BUFD, New Claymore and neighbouring property owners such as Abaddon into a major speculation cycle. Today nobody cares. Why? First of all, the Alberta diamond play is in the worst doghouse imaginable. Ashton, in the midst of a $7 million geophysics and sampling program, has slumped to an all time low of $0.51. Has Alberta's diamond potential been scientifically discredited? No, Alberta's sin is that it has not yet delivered a world class diamond pipe. Secondly, BUFD suffers from a credibility problem. Its actions to date do not suggest a keen understanding of the diamond exploration game. Thirdly, BUFD does not appear to have generated any obvious targets, creating the suspicion that the pipes are located in Calling Lake. That is bad news, because Calling Lake itself is off limits for the development of a mine. But diamond exploration is full of surprises. BUFD may yet plod onto a significant pipe. I wouldn't dump any of the Calling Lake juniors quite yet. What about buying them at dirt cheap prices? Only for people who enjoy extreme bottom-fishing.