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Gold/Mining/Energy : A CANADIAN DIAMOND HUNT -- Ignore unavailable to you. Want to Upgrade?

To: ralfph who wrote (562)	1/7/2002 11:43:29 PM
From: VAUGHN	Read Replies (1) \| Respond to of 930

Hello Ralfph Those numbers are not useless, but I tend not to pay too much attention to micro/macro counts... they can be very misleading. Just take a look at DO27's and you know what became of that pipe after Kenecott sunk a bundle into it. Very low count pipes can be highly profitable. The initial key isn't so much the micro/macro counts but the size range of the macros over a given sample and the apparent quality of those stones. In TWG's case, sampled Jackson Inlet pipes kicked back an extraordinary range of macros both in terms of size and quality. I am sure you remember Aber coming back with that 1 carrat stone in the core. Well TWG has done that in spades and panned them from grab samples. If you can get your hands on it, read the August 2001 Northern Miner article, Kaisers #4 report referenced on my SUF post today and a few from last week. At the end of the day in Canada, the bottom line will always be: 1. How much ore is there? 2. How much is it worth? 3. How much will it cost to recover it? 4. Are there any environmental impediments? So what does TWG have?: * Freighttrain alone @ 15 hectares contains at least as much kimberlite as Ekati required to make a mining decision (66mt) and more than twice as much as Diavik needed (25mt). * Jackson Inlet has at least 14 more largely untested pipes some of which are known to have exceptional geochemistry, better than either Ekati or Diavik. (see NR's from late 2000) * One of those addition pipes (#5) is even larger than Freighttrain with exceptional geochemistry. * Jackson Inlet claims are on craton next to a graben. * Geochemistry is at least as good and in many cases better than most of the world's major diamond bearing kimberlites. * Carrat sized macro's were found in small grab samples and recovered over an unusually large range from very narrow, shallow and small drill samples. * There is an attractive macro to micro ratio * Diamonds are largely (90%) clear, white, dodecohedrons - little boart, maccles, feathers or piques. * Some fancies have been found. (pink and amber- see Dec 2000 NR) * Pipes are 100my old or younger but unlike Somerset Island pipes, they are almost completely intact (uneroded), tuffacious and diatreme kimberlite intruded into soft limestone & sandstone. * Stripping (ore to waste) ratio's should be a minimum 4 times lower than Ekati's or Diavik's pipes and possibly as much as 7-8 times lower depending on the extent of limestone xenocrysts. (2 hectares vs +/-15 hectares) * Claims are 12 km from a deep sheltered tide water basin 120 km from Nanasivik whose labour force will shortly be looking for work. * Claims are 100% owned with only a 5% NSR and TWG has $4 million in capital. * Management BOD reads like a who's who of the mining industry and is committed to putting mine into production by 2005 without dilution. * No major environmental considerations * No third world political uncertainties Call me crazy but this looks like a better diamond play speculation than any I've looked at. Regards Vaughn