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

To: m.philli who wrote (399)	12/17/2002 3:15:11 PM
From: E. Charters	Respond to of 16213

The saying goes, always drill your best targets first. This is largely market driven. I could not say at present. Right now I am trying to get something going in a vehicle that would have several options in development of surface gold deposits. Drilling for diamonds could be done as well. The trouble with our Wawa property that while it was fairly good, it only ran 0.50 ounces per ton and was asingle vein system. There was some controversy over the grade, whicb could have been 0.357 .50 or 0.65 depending on how you figured it. This was a resource calculation only. Some people figure you have to drill off a mining property completely and then start at a minimum scale. This is not my idea of how to go about it. I prefer trial mining after a minimum amount of information has been achieved. I would not contemplate doing a full scale feasibility first at all. This scares away a lot of people who are far less sure what they are looking at in gold. There are several opportunities I would pursue in small scale mining but until we see serious money it is all speculation that gets us nowhere. Drilling for diamonds is all risk. It takes capital. To play around in that business you can talk about taking a moonshot with 3 million and not guaranteeing anything at all. On the other hand that bottom line is no worse than any other branch of exploration. It can be made to sound much worse as it is more recon-oriented but it is no different and may in final analysis be cheaper considering the return than gold drilling. As it is recon and area oriented more so than gold, it has to be conducted with a fair amount of confidentiality and arm waving. You need capital that trusts you. You cannot go around with a boat with the X marking the fishing hole painted on the side. EC<:-}