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Gold/Mining/Energy : Canadian-under $3.00 Stock-Picking Challenge -- Ignore unavailable to you. Want to Upgrade?

To: KC Jones who wrote (7422)	3/26/2002 3:17:30 PM
From: russet	Read Replies (1) \| Respond to of 11802

KC,...don't bet the farm on V.MOA and T.EET until you find out how much it costs to process your gravels. Revenue is US$6.00 per tonne gravels by that NR, and that will vary greatly depending on what gravels they are processing. It will probably cost more than US$6.00 per tonne to process the gravels and pay other expenses. If that 16.5 carat stone was gem quality,...much of the US$400 per carat valuation will be attributed to it,...the rest of the diamonds will be worth far less per carat. It is necessary to pull more big ones out like that consistently, or that valuation will not hold up. Most of these alluvial operations fold because they can not continuously haul out big gem quality diamonds on a continuous basis. This is a big gamble. Grade is not consistent in river bed gravels. Diamonds were caught in potholes, pools, and other traps...these features will give you the current grades stated in the NR because trained people can pick out these areas by studying the ancient or modern river bed features. Grades in gravels in other areas may not even approach these grades.