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Gold/Mining/Energy : Precious and Base Metal Investing -- Ignore unavailable to you. Want to Upgrade?

To: Claude Cormier who wrote (2572)	3/19/2002 8:51:13 PM
From: I_C_Deadpeople	Respond to of 39344

A quick tidbit on Aber as it was the first junior I ever followed. Tha father of a guy at work was a weatherman at the Lupin airport (Echo Bay Lupin mine). Aber's geologists were flying in and out of there just when the play was getting hot. This guy at work phones me and says "my dad just called me, said buy Aber, there are geologists and pilots all calling their brokers and friends to get in. One geologist just walked up to me and said "we are sh*tting diamonds"". Anyways, I think Aber was around $2 then and it popped to $14 on the news a few weeks later. Got me all hot about juniors. Have not been able to shake the bug since.

To: Claude Cormier who wrote (2572)	3/19/2002 11:53:47 PM
From: The Vet	Respond to of 39344

Thanks Claude for giving me the incentive to redo my DD on Aber. It is always helpful to update and double check now and again. I agree it is difficult to evaluate the final production of Aber at this stage so I can only use the figures from their web site and press releases. It's also instructive to look at proposed marketing and what they expect to sell. I assume Tiffany wouldn't have entered the deal (and bought a substantial lump of stock)if they didn't think Aber couldn't produce or alternatively they (tiffany) couldn't sell it. "Tiffany will purchase at least US$50 million per year in diamonds from Aber in defined quality ranges. The Aber share of the Diavik production is, however, capable of supplying substantially more of Tiffany's requirements:" "Upon production start-up in 2003, Tiffany has agreed to purchase a minimum of US$50 million per year in diamonds from Aber for a period of 10 years. Both partners believe that this figure may be exceeded once full commercial production is achieved....... Now 50 million US will be less than 10% of Aber's production whn you consider Tiffany is high grading the stones it choses. "Although the proportion of Aber's Diavik diamonds that will qualify for purchase by Tiffany is high, a sizeable proportion will not fit their exacting standards. These attractive American and Asian market diamonds will be marketed through a joint venture in the Antwerp rough market called "CanaDiam". " aber.ca A-154 South has a grade of 5.2 cpt and a diamond value of US$79 (CDN$116) per carat and a little more up to date.. Jan 29, 2002 ... Construction of the Diavik Project is approximately 65% complete. It remains within the feasibility study budget and is scheduled for startup in April 2003. The Diavik Project will produce 6-8 million carats per annum, approximately 5% of the world's current diamond production, over an estimated 20-year life. So 6 million ct @ $79 per ct give me a gross figure of $474 million US per annum, or $8.4 US per share (fully diluted)not counting any bonus that the direct marketing by Tiffany could achieve. The rock value of Diavik pipes is richer by at least 3 to 4 times that of any other working diamond mine so it must follow they will have a very low cost operation. Nothing helps a mining operation costs more than an exceptionally rich ore body. Check "Major World Diamond Deposits" on this page. aber.ca Of course there are many more pipes on this property that haven't been drilled yet, if you need some blue sky....