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Gold/Mining/Energy : Canadian Diamond Play Cafi -- Ignore unavailable to you. Want to Upgrade?

To: VAUGHN who wrote (280)	11/6/2002 6:07:32 PM
From: Famularo	Read Replies (1) \| Respond to of 16203

Diamonds plans $2,502,500 financing; closes another Diamonds North Resources Ltd DDN Shares issued 10,001,033 Nov 6 close $0.70 Wed 6 Nov 2002 News Release Mr. Maynard Brown reports DIAMONDS NORTH PRIVATE PLACEMENT Diamonds North Resources has negotiated a brokered private placement with a syndicate led by Dundee Securities and including Haywood Securities Inc. to raise up to $2,502,500. The private placement will comprise up to 3,575,000 flow-through units at a price of 70 cents per unit. Each unit will consist of one flow-through common share and one-half of a non-transferable common share purchase warrant. Each whole common share purchase warrant will entitle the holder to purchase one common share at a price of 80 cents per common share for a period of 12 months after the closing date. No flow-through benefits will be attached to any common shares issued upon the exercise of the common share purchase warrants. The agents will be paid a cash fee equal to 7.5 per cent of the gross proceeds raised in the offering. The agents will also receive broker warrants entitling them to purchase that number of common shares which is equal to 10 per cent of the number of units sold. The broker warrants will expire 12 months after the closing date. The exercise price for the broker warrants will be 70 cents per common share. The flow-through shares, the warrant shares and the agents' warrants will be subject to a hold period of four months plus one day from the closing date which will be on or about Nov. 28, 2002. The gross proceeds of the units shall be used for the development of the company's projects in Canada. Diamonds North also announces the completion of the non-brokered private placement announced in Stockwatch Oct. 15, 2002. The 111,000 units were distributed Oct. 30, 2002, and are subject to a hold period and may not be traded until March 1, 2003.

To: VAUGHN who wrote (280)	11/6/2002 6:14:28 PM
From: Famularo	Read Replies (4) \| Respond to of 16203

Just how much better is hard to say at this stage, but there are encouraging signs to be had from another Ashton find, the Renard-2 pipe in Northern Quebec. Ashton processed 161 kilograms of kimberlitic rock from the body late last year, recovering 145 diamonds. That parcel included 29 macro-sized stones, including five that were macrodiamonds in two dimensions. The best news was that three of the stones were longer than one millimetre in three dimensions. The Renard-2 diamond recovery worked out to nearly 900 diamonds per tonne, or about triple the number at Sue, and with 175 macros per tonne, the macrodiamond population at Renard-2 was about triple the number found at Sue. The gap seemed to close with larger stones however. There were 30 stones per tonne at Renard-2 that were macrodiamonds in two dimensions. That was equivalent with the recovery at Sue, but the number of stones recovered from Renard seemed unusually low, and that belief was supported by the recovery of still larger diamonds. There were about 18 diamonds per tonne that were longer than one millimetre in two dimensions at Renard-2, which was about 2.5 times the number at Sue. Last spring, Ashton processed 2.44 tonnes of rock from Renard-2, coming up with 1.69 carats of diamonds, suggesting a grade of about 0.70 carat per tonne. The size distribution curve seemed quite healthy, as five of the stones weighed between 0.10 carat and 0.16 carat. The comparison suggests that Sue could have a similar diamond size distribution as Renard-2, although there is no hint that its grade will be a match for that of the Quebec pipe. From Will's street wire. Renard 2, 3 and 4 mini bulk samples will be out within seven weeks. If consistent with Renard 2, we will witness increased volume and Ashton price. Still early but after ten years, the Renard seems to be the best ever potential open pit mine. Tonnage will be fine. 20-25 tonne is what we may get if 5 of the 8 pipes are commercial. A MPV buyout by Debeers will help juniors or spectacular news by a junior will fuel the diamond exploration sector...Pregnant stocks all over the canadian diamond exploration map, ready to explode..... frank