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

To: Letmebe Frank who wrote (1101)	7/28/2003 9:29:42 AM
From: kidl	Read Replies (4) \| Respond to of 16205

Shear (SRM) News: Shear, Stornoway discover kimberlite pipes at Churchill Shear Minerals Ltd SRM Shares issued 26,920,727 Jul 25 close $0.87 Mon 28 Jul 2003 News Release Also (SWY) Ms. Pamela Strand of Shear Minerals reports SHEAR MINERALS LTD. AND STORNOWAY DIAMOND CORPORATION: ELEVEN KIMBERLITE PIPES DISCOVERED ON CHURCHILL PROJECT 2003 DRILLING PROGRAM SUMMARY The first phase of drilling on the Churchill diamond project is now complete. The six-week, 1,275-metre program tested 15 targets within a 600-square-kilometre area and resulted in the discovery of 11 kimberlite pipes. Unreported results include a 71-metre intercept of kimberlite at Tuktu-1 which ended in kimberlite, and the discovery of two new kimberlite pipes: Tuktu-2 where 20 metres of kimberlite was intersected and Tuktu-3 which ended in kimberlite after a 66-metre intersection. Each of the 11 bodies is associated with a prominent circular magnetic high or low signature ranging from 100 to 400 metres in diameter and was tested with one or two vertical drill holes. Two anomalies were tested with a second drill hole in order to obtain the optimum sample size for diamond analysis. Kimberlite intercepts ranged from four to 94 metres and a total of about 1,000 kilograms of material has been collected for diamond analysis. Two of the targets proved non-kimberlitic and two others could not be explained due to difficult drilling conditions. "It is encouraging to have discovered pipes over such a wide area and so early in the Churchill exploration program," says Pamela Strand, president and chief executive officer of Shear. "The spatial distribution of kimberlites coupled with the excellent regional kimberlite indicator mineral chemistry has increased our confidence in the merit of the Churchill diamond project." The Churchill project encompasses more than 1.5 million acres located near the community of Rankin Inlet in the Kivalliq region of Nunavut. So far, 217 magnetic targets have been identified, 29 of which are high priority, from a 16,307-line-kilometre magnetic survey conducted in 2002 over about one-third of the property. Indicator minerals commonly associated with diamond-bearing kimberlites have also been identified from regional till sampling surveys within this region. Much of the property remains under-explored, and in January, 2003, the partners approved a budget of $2.5-million for additional land acquisition, airborne and ground geophysical surveys, kimberlitic indicator mineral sampling, prospecting, and drilling. A propertywide kimberlitic indicator mineral sampling program was initiated in early July and 526 samples have been collected to date. In addition, regional airborne magnetic surveys have commenced over previously untested portions of the property. The success of the first-phase drilling campaign combined with a growing list of priority drill-ready ground magnetic targets may result in an expansion of the 2003 program to include a second phase of drilling later this summer. "Going into the Rankin Inlet area, we knew there were previously discovered kimberlites that were barren. The reasons we chose to explore where we did was because the mineral chemistry was exceptional and suggestive of diamond-bearing kimberlites in our locality. We have not changed our view," says Ms. Strand. The 2003 field program is under the supervision of Dean Besserer, PGeol, of APEX Geoscience Ltd., a qualified person under NI 43-101. Mr. Besserer is responsible for all aspects of the projects supervision including quality assurance, quality control and sample chain of custody. Shear has a 51-per-cent interest and is operator on the Churchill diamond project. Stornoway Diamond and BHP Billiton have 35-per-cent and 14-per-cent interests. (c) Copyright 2003 Canjex Publishing Ltd. stockwatch.com Click here for company snapshot: new.stockwatch.com Click here for recent SEDAR documents: new.stockwatch.com

To: Letmebe Frank who wrote (1101)	7/29/2003 10:02:55 AM
From: rdww	Respond to of 16205

victor scheduled to come onstream in 2006/7 at a 0.40 cpt grade since DB says it will mine 2.5MM t's per yr and generate 1MM carats Diamond power grab: De Beers speaks its mind Stephen Bell Wednesday, June 25, 2003 AFTER decades of calling the shots, South African diamond colossus De Beers is on the retreat. Though it still controls nearly two-thirds of the US$9 billion rough diamond market, its share is slowly being eaten up by hungry new competitors. Recent entrants Rio Tinto and BHP Billiton are marketing their stones outside of De Beers, and pushing hard to find new mines. Each new project adds to the pressure on De Beers, which recently shrunk further from the public's gaze via its US$17.6 billion privatisation. One day in the not-too-distant future the almost unthinkable may come to pass: De Beer's share of the market will fall below 50%. So what is the great De Beers doing about these pesky Australian/UK intruders? It seems unfazed about BHP Billiton's aggressive Canadian branding strategy for its Ekati gems. The South African group says that it has "no intention to brand diamonds as Canadian" that come from either of its two projects in Canada ? Snap Lake and Victor. It also wants to be judged by "actions, not just our words", as it attempts to steer the industry clear of any new "blood diamonds" scandals. "The events over the last few years have demonstrated that our public profile is increasing and there is no going back," it says. The following is an edited interview recently conducted with a De Beers spokesperson.* MiningNews.net: De Beers seems to have been successful in boosting both rough prices and demand for finished stones. For instance, your rough diamond sales rose 16% to US$5.15 billion last year, while diamond jewellery sales were up 6%. But De Beers' share of the global $US9 billion rough marketing industry is slowly but surely eroding because of the entry of new players. Is that correct? DeBeers: Over the past ten years new mines have come on stream that are not part of the De Beers Group, consequently eroding DBG market share of world rough production. According to BHP Billiton, your share of rough marketing amounts to around 60%. Is that correct and how does that compare to 5-10 years ago? At its height, De Beers was marketing more than 85% of the world's diamonds by value. De Beers currently markets its own production of rough gem diamonds and, under renewable contract, the production of its associated companies, Debswana and Namdeb - De Beers production is around 42% of world total value. It also purchases 50% of Russian production by value. The total market share is around 60%. Is De Beers comfortable with that eroding market share? Or is it actively trying to make up lost ground? De Beers continues to invest substantially but prudently in global diamond exploration with US$79 million invested in 2002 in 12 countries around the world. Production from our mines increased by 4% in 2002 to 40.2 million carats and our mines are now operating at full capacity. De Beers used to market some of BHPB's Ekati stones but that company is now going it alone. Rio Tinto will also market its own stones from Diavik, in combination with Argyle's existing range. BHPB has also said it will market stones for third parties. Have those moves affected your own marketing strategy? Not at all. These companies are at liberty to market their stones in whatever fashion they feel appropriate. DTC (De Beers' Diamond Trading Co) has embarked on its Supplier of Choice strategy and we will strive to attain the goals set by this initiative. What about BHPB's Aurias and CanadaMark brand names. Their strategy seems to be to emphasise the Canadian "purity" and non-conflict nature of the stones. Is that a strategy De Beers will mirror when it starts producing its own stones out of Canada? De Beers has no intention to brand diamonds as "Canadian" that come from either of its two projects in Canada - Snap Lake and Victor. MiningNews: When are your Canadian projects due to start and how much will they produce? DeBeers: Snap Lake is scheduled to come on stream in 2007 and will produce 1.5 million carats per year. The Victor project in northern Ontario is also scheduled to come on stream in 2007 and will produce under a million carats per annum. Stockbroker Deutsche Bank recently warned that De Beers is threatened by a "reduction in Russia's marketing contract". Is that threat real? How much is the value of the current contract with Alrosa and when does it expire? A new 5-year, $4 billion contract that provides for sales of a minimum of US$800 million a year over the period of the contact was signed on December 31, 2001. The contract comprises US$500 million run-of-mine and US$300 million export assortment, which represents around half of Alrosa's annual production. The remainder will be available to supply the Russian cutting industry. The contact is not exclusive, nor is it subject to a quota as in past contacts. However, the contract has not yet come into effect as it is the subject of discussion with the European Commission for competition. On 16th January 2003 De Beers announced that it had received a Statement of Objections from the Commission. De Beers and Alrosa are continuing in dialogue with the Commission to address their concerns. In the meantime De Beers and Alrosa continue to trade on a willing buyer, willing seller basis. Deutsche Bank also mentions the closure of 'outside buying' due to the recent blood diamonds scandal as a negative impact on De Beers. "This increases De Beers cost of market intervention and decreases its effectiveness," Deutsche Bank said. "While we believe this is unlikely to pose a short-term threat to diamond prices, we do consider the de-consolidation of the diamond industry is likely to erode producer pricing power in the long-term." Any comments? De Beers ceased its outside buying activities in 1999 due to the threat of conflict diamonds. However, outside buying only represented a small percentage of De Beers' intake of rough diamonds. This has had no effect on the DTC's ability to supply its clients. What about the whole conflict diamond issue? Has the recent Kimberley certification process overcome that blight on the industry? After more than two-and-a-half years of complex and often difficult negotiations, more than 35 nations signed up to the Kimberley Process in Switzerland in November, and preparations are now under way for its implementation. At the same time, leaders of the World Federation of Diamond Bourses (WFDB) and the International Diamond Manufacturers Association (IDMA) ratified a system of warranties, initiated and developed by the international diamond industry. This has been accepted as an integral part of the Kimberley Process and is designed to complement and support the efforts of governments. No one should be under any doubt about the significance of this process and the responsibilities of all those involved to make it work. The diamond industry is now, like many other businesses around the world, under constant public scrutiny. The events over the last few years have demonstrated that our public profile is increasing and there is no going back. We will continue to be judged by our actions, not just our words. De Beers believes that members of the global diamond industry have recognised this fact through the industry's critical and assertive role in assisting governments to combat the trade in conflict diamonds. Through the leadership of the WFDB and the IDMA, and the efforts of the World Diamond Council, which represents the entire industry, we have acquired significant international recognition and credibility. It is unprecedented for a global industry to have cooperated so closely with the United Nations, governments and the NGO community in addressing an important humanitarian issue on this scale. Our combined efforts have done much to secure the lasting integrity of our unique product in the mind of the consumer and it is at our peril that we allow this to be eroded through complacency and inaction. There will, undoubtedly, be other challenges awaiting us in the future, but De Beers is confident of meeting those challenges because of the valuable lessons learned through our involvement in the Kimberley Process. The most important and valuable lesson being that progress and the defence and promotion of our industry are better served by acting in unison and engaging positively with the outside world. *For a full review of the Changing Face of World Diamonds, see the July edition of RESOURCESTOCKS magazine. Previous... Click here to read the rest of todays news stories.